THE WORST THING THAT HAPPENED TO ETHEREUM — BITCOIN UP 160% SINCE THE MERGE

The Merge, Ethereum's highly anticipated transition to Proof-of-Stake (PoS) in September 2025, was heralded as a revolutionary step, promising enhanced scalability, energy efficiency, and a deflationary ETH supply.However, over two years later, the reality paints a starkly different picture. Ethereum s supply is climbing, ETH whales are dumping, and its biggest rival, Solana, is gaining ground more than two years after the switch to proof-of-stake.Instead of soaring to new heights, Ethereum has significantly underperformed against Bitcoin, its primary rival in the cryptocurrency arena. However, more than two years later, Ethereum s performance tells a different story, as Bitcoin has gained around 160% against Ether since the Merge. ETH supply rate near positive 2.5 years afterSince the Merge, Bitcoin has surged by approximately 160% against Ether (ETH), casting a shadow over Ethereum's market position and prompting widespread concerns about its future price trajectory. Falling knife warning furthers sell-off risks . On March 13, ETH/BTC a pair that tracks Ether s strength against Bitcoin dropped by over 1.50% to reach $0.022, its lowest level since May 2025.This dramatic shift begs the question: has the Merge, intended to be Ethereum’s triumph, inadvertently become its Achilles' heel? Bitcoin has risen significantly, showcasing a 160% gain against Ethereum since the Merge in September 2025. This performance has triggered skepticism about Ethereum s long-term market potential, as ETH s positioning weakens against its biggest rival. Ethereum is seeing long-term holders reduce their ETH exposure, while Solana captures market share in decentralized finance. The supplyHas Ethereum not only failed to meet expectations but also ceded ground to Bitcoin and other emerging competitors like Solana?The data doesn't lie: Ether has plummeted nearly 70% against Bitcoin since this pivotal transition. Ethereum (ETH) continues to perform poorly against Bitcoin, with data showing that ETH has fallen by 70% against BTC since the merger. While analysts expThis article dives deep into the factors contributing to Ethereum's struggles and explores whether this downturn is a temporary setback or a sign of deeper, more systemic issues.

Ethereum vs.Bitcoin: A Tale of Two Cryptocurrencies Post-Merge

The Merge was designed to usher in a new era for Ethereum, making it more appealing to investors and developers alike. Ether ETHUSD has dropped nearly 70% versus Bitcoin BTCUSD since the Merge, weakening Ethereum s market position and raising questions about its price outlook.The promise of a deflationary supply, driven by reduced ETH issuance, was a key selling point. Ethereum generated $731,472 in daily fees on Feb. 8, marking the first time in five months that daily revenue dropped below $1 million. The network experienced a similar slump from Aug. 17 to SeptHowever, the reality has been far from the initial projections.

Bitcoin's Dominance

While Ethereum has been grappling with its post-Merge performance, Bitcoin has experienced a remarkable resurgence.Bitcoin has gained approximately 160% in value against Ethereum since September 2025. The worst thing that happened to Ethereum Bitcoin up 160% since the Merge Bitcoin has risen significantly, showcasing a 160% gain against Ethereum since the Merge in September 2025. This performance has triggered skepticism about Ethereum s long-term market potential, as ETH s positioning weakens against its biggest rival.This outperformance can be attributed to several factors:

• Bitcoin's Status as a Safe Haven: In times of market uncertainty, investors often flock to Bitcoin, viewing it as a store of value and a hedge against inflation.
• Institutional Adoption: Bitcoin continues to attract institutional investment, with major companies and funds adding it to their portfolios.
• Increased Accessibility: The proliferation of Bitcoin ETFs and other investment vehicles has made it easier for both retail and institutional investors to gain exposure to the cryptocurrency.

Ethereum's Underperformance

Ethereum's struggles since the Merge stem from a combination of factors, including:

• Weakening Deflationary Effect: Ethereum was expected to become deflationary after the Merge, with the amount of ETH burned exceeding the amount issued.However, low network activity has weakened this effect, resulting in a slower reduction in the ETH supply than anticipated.
• Whale Exodus: Large ETH holders, often referred to as ""whales,"" have been offloading their holdings since the Merge, potentially signaling a lack of confidence in Ethereum's long-term prospects.
• Increased Competition: Ethereum faces growing competition from other layer-1 blockchains, such as Solana, which offer faster transaction speeds and lower fees.

The Impact of Low Network Activity

One of the primary drivers behind Ethereum's deflationary mechanism was the expectation of high network activity, leading to increased transaction fees and, consequently, more ETH being burned. Related: 'The worst thing that happened to Ethereum' Bitcoin up 160% since the Merge VanEck noted that Solana s decentralized exchange volume has surpassed Ethereum s even during a steepHowever, the reality has been different.Ethereum's daily fees have experienced a slump, even dropping below $1 million for the first time in months.This decline in network activity can be attributed to several reasons:

• Layer-2 Solutions: Layer-2 networks, such as Optimism and Arbitrum, have emerged as popular alternatives for users seeking faster and cheaper transactions. The worst thing that happened to Ethereum Bitcoin up 160% since the Merge. admin. Febru .While these solutions benefit the Ethereum ecosystem as a whole, they also reduce activity on the main chain, impacting ETH burning.
• Increased Competition: The emergence of other blockchains offering lower fees and faster transaction speeds has further diverted activity away from Ethereum.

The decrease in network activity directly affects the rate at which ETH is burned, undermining the deflationary pressure that was a key promise of the Merge.This has contributed to a sense of disappointment and disillusionment among investors.

The Whale Exodus: A Sign of Trouble?

The movement of large ETH holders, often referred to as whales, is closely watched as a barometer of market sentiment.Since the Merge, there has been evidence of significant ETH outflows from whale wallets, suggesting a lack of confidence in Ethereum's near-term prospects.Why are these whales selling?Several factors could be at play:

• Profit-Taking: Whales may be taking profits after the Merge, capitalizing on the initial hype and subsequent price increase.
• Concerns About Ethereum's Future: Some whales may be concerned about Ethereum's long-term prospects, given its underperformance against Bitcoin and the increasing competition from other blockchains.
• Diversification: Whales may be diversifying their portfolios, reducing their exposure to ETH and allocating capital to other cryptocurrencies or asset classes.

Regardless of the specific reasons, the whale exodus is a worrying sign for Ethereum.The departure of these large holders could put downward pressure on the price of ETH and further erode investor confidence.

The Rise of Solana: A Threat to Ethereum's Dominance

While Ethereum has been struggling, Solana has emerged as a strong contender in the blockchain space, particularly in the realm of decentralized finance (DeFi).Solana's rise can be attributed to its:

• High Transaction Speeds: Solana boasts significantly faster transaction speeds than Ethereum, making it more appealing to users who require quick and efficient transactions.
• Low Transaction Fees: Solana's transaction fees are substantially lower than Ethereum's, making it a more cost-effective option for many users.
• Growing Ecosystem: Solana's ecosystem is rapidly expanding, with a growing number of DeFi applications, NFT projects, and other innovative projects being built on the platform.

VanEck noted that Solana's decentralized exchange (DEX) volume has surpassed Ethereum's, indicating a significant shift in market share. Ether BINANCE:ETHUSD has dropped nearly 70% versus Bitcoin BINANCE:BTCUSD since the Merge, weakening Ethereum s market position and raising questions about its price outlook. Ethereum s transition to proof-of-stake (PoS) in September 2025 aimed to be a game-changer for the network. It promised to iThis highlights the growing threat that Solana poses to Ethereum's dominance in the DeFi space.

Solana's DEX Volume Surpassing Ethereum

The fact that Solana's DEX volume has overtaken Ethereum's is a significant milestone. Ethereum became deflationary after the Merge in 2025 but started to increase ETH and BTC issuance since Ethereum s Merge: 'The worst thing that happened to Ethereum' Bitcoin up 160%It demonstrates that users are increasingly willing to migrate to alternative blockchains that offer superior performance and lower costs.This trend could accelerate in the future, further eroding Ethereum's market share.

What's Next for Ethereum?Addressing the Challenges

Despite the challenges it faces, Ethereum remains the second-largest cryptocurrency by market capitalization and a vital platform for innovation.To regain its momentum and solidify its position in the market, Ethereum needs to address the following:

Improving Network Scalability

Scalability remains a key challenge for Ethereum. However, more than two years later, Ethereum s performance tells a different story, as Bitcoin has gained around 160% against Ether since the Merge. BTC/ETH performance since the Merge. Source: TradingViewWhile layer-2 solutions offer some relief, the network still needs to improve its throughput to handle increasing transaction volumes. SOLUSD Solana 'The worst thing that happened to Ethereum' Bitcoin up 160% since the Merge. Ethereum's supply is climbing, ETH whales are dumping, and its biggest rival, Solana, is gainingThe ongoing development of Ethereum 2.0, with its sharding technology, is aimed at addressing this issue. Ether (ETH) has dropped nearly 70% versus Bitcoin (BTC) since the Merge, weakening Ethereum s market position and raising questions about its price outlook. ETH/BTC weekly performanceHowever, the timeline for full implementation remains uncertain.

Reducing Transaction Fees

High transaction fees continue to be a barrier to entry for many users. Ethereum s supply is climbing, ETH whales are dumping, and its biggest rival, Solana, is gaining ground more than two years after the switch to proof-of-stakeEthereum needs to find ways to reduce these fees to remain competitive with other blockchains.This could involve optimizing the gas market or exploring alternative fee structures.

Attracting and Retaining Developers

Ethereum's vibrant developer community is one of its greatest strengths. 'The worst thing that happened to Ethereum' Bitcoin up 160% since the Merge by Yashu Gola The platform will offer BTC and AVA rewards for cryptocurrency-based bookings on Trivago.To maintain this advantage, Ethereum needs to continue attracting and retaining developers. However, more than two years later, Ethereum s performance tells a different story, as Bitcoin has gained around 160% against Ether since the Merge. BTC/ETH performance since the Merge. Source: TradingView. ETH supply rate near positive 2.5 years after MergeThis requires providing them with the tools, resources, and support they need to build innovative applications on the platform.

Enhancing the Deflationary Effect

Restoring the deflationary pressure on ETH is crucial for bolstering investor confidence.This requires increasing network activity and optimizing the burning mechanism. Related: The worst thing that happened to Ethereum Bitcoin up 160% since the Merge. Layer-2 networks reduce Ethereum activity.One potential solution is to introduce new applications and use cases that drive higher transaction volumes on the main chain.

Analyzing ETH Supply Rate

Data reveals that Ethereum issuance became deflationary after the Merge in 2025, but it has begun to increase.This contrasts with Bitcoin, which has seen its supply impacted by its own upgrades and halvings.Tracking the ETH supply rate is critical for understanding its long-term price potential.

Expert Opinions on Ethereum's Future

Despite the negative trends, some analysts remain optimistic about Ethereum's future.Joao Wedson, CEO of Alphractal, has announced important data regarding Ethereum.Crypto commentator Kyle Doops has also weighed in on the situation. Related: The worst thing that happened to Ethereum' Bitcoin up 160% since the Merge. Crypto commentator Kyle Doops said in a Feb. 6 X postTheir insights offer valuable perspectives on the challenges and opportunities facing Ethereum.

Practical Advice for Investors

Given the current market dynamics, what should investors do?Here's some practical advice:

• Diversify Your Portfolio: Don't put all your eggs in one basket. Ether (ETH) has dropped nearly 70% versus Bitcoin (BTC) since the Merge, weakening Ethereum s market position and raising questions about its price outlook. Ethereum s transition toDiversify your cryptocurrency holdings to mitigate risk.
• Do Your Research: Before investing in any cryptocurrency, conduct thorough research and understand the risks involved.
• Consider Layer-2 Solutions: If you're using Ethereum, explore layer-2 solutions to reduce transaction fees and speed up transactions.
• Stay Informed: Keep up-to-date with the latest news and developments in the cryptocurrency market.
• Manage Your Risk: Only invest what you can afford to lose.

What is the Merge? 'The worst thing that happened to Ethereum' Bitcoin up 160% since the Merge cointelegraph.com, UTCA Quick Recap

The Merge refers to Ethereum's transition from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) system. ETH down 70% vs. BTC: Bitcoin has outperformed Ethereum since its 2025 PoS transition. Supply growth stalls: ETH s deflationary effect has weakened due to low network activity. Whale exodus: Large ETH holders have been offloading since the Merge. Solana s rise: SOL now controls nearly half of the DEX market, surpassing Ethereum in volume.This switch was designed to improve Ethereum's scalability, energy efficiency, and security. Ethereum issuance became deflationary after the Merge in 2025 but finding that Bitcoin added 655,000 Bitcoin to supply since the Dencun upgrade, compared to 462,000 Ether added to the EthereumThe move was initially slated for 2025, but various delays pushed the actual Merge to September 2025.

Why Did Ethereum Underperform After the Merge?

Multiple factors contributed to Ethereum's underwhelming performance post-Merge, including a lack of deflationary pressure, a whale exodus, and increased competition from alternative layer-1 blockchains like Solana.The initial promise of a significantly reduced ETH supply did not fully materialize due to decreased network activity and transaction volumes.

Is Ethereum Still a Good Investment?

Whether Ethereum remains a good investment depends on your individual risk tolerance and investment goals. The amount of Ether being taken off crypto derivatives exchanges has reached the highest level since August 2025 a signal analysts interpret as positive for Ether's price.While Ethereum faces challenges, it is still a major player in the cryptocurrency space with a large developer community and a wide range of applications. Bitcoin has gained approximately 160% in value against Ethereum since Mertge. While Ethereum s failure to meet expectations and its weak performance against Bitcoin increased concerns about ETH s market position, Alphractal CEO Joao Wedson announced important data regarding Ethereum.However, investors should carefully consider the risks and potential rewards before investing in ETH.

Falling Knife Warning

Technical analysts have pointed out a ""falling knife"" pattern in ETH/BTC charts, suggesting potential for further sell-off risks.This emphasizes the importance of caution and risk management for ETH holders.

Conclusion: Navigating the Post-Merge Landscape

The Merge, while a significant technological achievement, has not delivered the expected results for Ethereum. Bitcoin's 160% gain against Ethereum since the Merge underscores the challenges that ETH faces.The weakening deflationary effect, the whale exodus, and the rise of competitors like Solana have all contributed to Ethereum's underperformance.To regain its footing, Ethereum must address its scalability issues, reduce transaction fees, and attract and retain developers. Bitcoin has gained approximately 160% in value against Ethereum since Mertge. While Ethereum's failure to meet expectations and its weak performance against Bitcoin increased concerns about ETH's market position, Alphractal CEO Joao Wedson announced important data regarding Ethereum.While the future remains uncertain, Ethereum's ability to adapt and innovate will ultimately determine its long-term success.Investors should carefully consider the risks and opportunities before making any investment decisions.The worst thing that happened to Ethereum was perhaps not the Merge itself, but the failure to meet the lofty expectations that surrounded it, allowing Bitcoin to seize the advantage.Stay informed, manage your risk, and be prepared for potential volatility in the cryptocurrency market.