A comprehensive report from Steno Research suggests that Ethereum (ETH) will surpass Bitcoin (BTC) in terms of price performance by 2025, driven by a combination of historical trends, institutional interest, and favorable regulation following Donald Trump’s election victory.
While the total market capitalization of cryptocurrency reached new heights in 2024 with $3.9 trillion, Ethereum has relatively underperformed compared to Bitcoin. However, Steno Research predicts that Ethereum could rise to $8,000 in 2025, a significant increase from the current price of $3,400. This while the company expects a record high of $150,000 from Bitcoin.
The trading pair ETH/BTC, which represents the relative value of ETH to BTC, is expected to rise from 0.035 to 0.06 in the next 12 months, which would signify a significant reversal from the recent downtrend.
The weekly chart shows that the ETH/BTC ratio has been declining since September 2022, but a crucial support level is now being tested at 0.035, with expectations of a recovery to the level of 0.06.
Currently, Bitcoin dominance also stands at 58%, with expectations that it will drop to 45%, which could provide room for altcoins to flourish. The lower peak in Bitcoin dominance suggests a possible sharp decline, which would be favorable for altcoins like Ethereum.
Mads Eberhardt from Steno Research also indicated that Trump’s election victory could be favorable for altcoins, including Ethereum, which could lead to a bullish momentum.
Steno Research also predicts a resurgence in DeFi activity on Ethereum, with an expected total value locked (TVL) that could reach a new high of $300 billion in 2025. After Trump’s election victory, the price of ETH rose by 10%, which also points to a better sentiment around DeFi and regulation.
The analysts expect that Ethereum could deliver a remarkable performance in 2025, possibly surpassing Bitcoin due to a combination of technical, political, and economic factors. Do you share this opinion? Let us know on our socials!