Ethereum is the second largest cryptocurrency by total market capitalization after Bitcoin.

Since May 2019, the price of Ethereum has fallen by nearly 50% against Bitcoin.

The cross-platform ETHBTC trading pair fell from 0.0347 BTC to 0.01762 BTC in seven months.

Behind the weak performance of Ethereum against Bitcoin since 2019 there are several reasons, most notably:

Correction in the crypto market in the latter half of 2019 and the lack of successful trading projects on the Ethereum blockchain.

In this article, we’ll go deeper into these reasons:

Reason #1: A correction in the crypto market in mid-2019

In May 2019 and within 30 days, the price of Bitcoin increased by 62 percent against the dollar, from about $5,300 to $8,500.

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The sudden increase in the price of Bitcoin after four months of recession significantly improved the sentiment of the crypto market.

Major cryptocurrencies such as Ethereum are on the rise with the recent Bitcoin rally reaching $13,900.

However, right after hitting a new yearly high, the price of Bitcoin fell by about 25 percent in a matter of days.

Then the price of Bitcoin continued to decline since it reached its highest levels, which indicates an extended downtrend.

The Ethereum/Bitcoin cross is an ugly scheme. pic.twitter.com/xYwA45lV3o

Joe Wiesenthal (@TheStalwart) January 7, 2020

In a bear market, investors tend to focus on less risky assets to hedge their holdings against volatility.

Capital started flowing from major altcoins into Bitcoin or Tether after the correction.

With Bitcoin falling below the $10,000 level, trading currencies and other cryptocurrencies have fallen by more than Bitcoin against the dollar.

Technically, the definition of a bear market is when an asset is down 20 percent from its recent high.

Bitcoin has fallen by 40 percent in the past seven months.

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The crypto market in a downtrend has been the main factor behind Ethereum’s struggle to recover from its association with Bitcoin since mid-2019.

Reason #2: Lack of commercially successful projects on Ethereum:

As early as 2018, several decentralized applications (DApps) caught the spotlight on the Ethereum network.

Platforms and games like CryptoKitties have seen massive traffic and demand, causing an increase in digital holdings on the Ethereum blockchain worth hundreds of thousands of dollars.

But then the growth of DApps remained stagnant, in part due to the limited scalability and limitations of DApps in their current form.

In recent months, DeFi has seen a massive increase in adoption and demand, with hundreds of millions of dollars secured in DeFi platforms.

Among the factors that have made things slower on the DApps side is the shift of the Ethereum network towards PoS.

Although the numbers of DeFi platforms on Ethereum are promising, many projects have not gained success and approval over the past two years.

Bitcoin itself is an app because people use it to store value and use it for payments.

Ethereum does not bear an image of a store of value or digital gold, which makes the advancement of dApps and other decentralized platforms all the more important to evaluate.

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For information, the value of the Ethereum currency at the moment of writing this topic is estimated at 143 dollars, with a total market value of 15.7 billion dollars.

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