Ethereum's Market Share Drops 67% to 7% in 2024

Ethereum's market share has plummeted to its lowest point since 2021, reaching a mere 7%. This decline marks a significant drop from its peak during the 2021 bull cycle, when it surged to 22%. Over the past three years, Ethereum's market share has fluctuated between 16% and 20%, but it has since tanked in 2024, reflecting a 67% decrease to a five-year low. This downturn is attributed to tariff uncertainty and a pervasive negative sentiment towards the altcoin.

During this period, Bitcoin has outperformed Ethereum, leading to a 77% decline in the ETH/BTC ratio since the shift from Proof-of-Work (PoW) to Proof-of-Stake (PoS). The ETH/BTC ratio has dipped to a five-year low of 0.018, indicating a substantial loss in Ethereum's relative price performance compared to Bitcoin. Ethereum's value has also declined by 64%, from over $4,000 to $1,500. This bearish sentiment is not limited to the retail market; institutional appetite for Ethereum has also slowed down in 2025. Unlike December 2024, which saw over $2 billion in monthly inflows into spot Ethereum ETFs, the first quarter of 2025 witnessed weak demand, with inflows of about $100 million or less in January and February. Since March, nearly $500 million has been withdrawn from these products.

Despite the negative sentiment, Ethereum has several key upgrades lined up, including Pectra and Fusaka. These updates aim to enhance cheaper and faster Layer 1 (L1) and Layer 2 (L2) transactions, positioning Ethereum to compete more effectively with rivals like Solana. Another potential positive catalyst is the approval of staking on Ethereum ETFs, with a key deadline in June. However, whether Ethereum will find a bottom around $1,500 remains uncertain. Analyst Michael van de Poppe has projected a 20% recovery for Ethereum by the end of April or early May, citing oversold conditions on the weekly chart that signal a potential reversal. "I wouldn’t be surprised to see a 20% upwards candle on $ETH in the coming 1-2 weeks," van de Poppe stated.