Ethereum, recognized as the second largest cryptocurrency by market cap after Bitcoin, has risen to prominence over the years. Despite its success, the cryptocurrency has witnessed price fluctuations in the past weeks, with a notable 11.6% drop in the last 30 days.
Ethereum vs Bitcoin: Price Action and Analysis
The current market cycle has revealed the varying market trends between the price actions of Ethereum and Bitcoin. Recently, Bitcoin surpassed the $100,000 mark to reach an all-time high of $108,000, reflecting its position as an industry leader and a major player in the financial sector. On the other hand, the Ethereum price has maintained its momentum despite not reaching its all-time high, with the ETH token currently trading for over $3,400.
The ETH/BTC ratio, known for being a key metric for measuring the performances of both cryptocurrencies, has risen to about 0.033, with analysts predicting it to hit 0.04 in 2025. While Bitcoin has been performing incredibly well, although dropping by over 5% from its all-time high, there is optimism around Ethereum. Analysts predict that ETH will hit $10,000 before the end of the year.
Ethereum’s Layer 2 Arbitrum Set to Soar
The ETH price has struggled with inconsistent movement, but several Ethereum layer 2 solutions have shown remarkable performances. This is due to their remarkable features that address scalability, speed, and other challenges in blockchain ecosystems.
Amongst the industry’s many layer 2 scaling solutions, Arbitrum has stood out for its remarkable features and domination in the blockchain space. According to L2Beat, the project boasts a total value locked (TVL) of over $21 billion, a 67% jump from its last total in November 2024.
A large part of Arbitrum’s success is because of its advantages in scalability. With its layer 2 scaling solution, Arbitrum processes larger transactions efficiently in record time, and the platform continues to be the go-to choice for layer 2 scaling solutions.
The project will become a stage 2 rollup, making it a more efficient and decentralized network. According to a governance proposal by the Arbitrum Foundation, the project’s smart contracts aim to incorporate BoLD (Block-Oriented Validation), making it a secure and more inclusive network.
As the year continues to unfold, it is expected that Arbitrum will continue to expand its blockchain and offerings. Ethereum is not left out, as market analysts anticipate its all-time high in 2025.
Optimism and Base Are Also Doing Well
Arbitrum is not the only dominant layer 2 scaling solution. The Optimism ecosystem has quietly been building its own empire. Backed by Coinbase, Base and OP chains have captured a large market share in the layer 2 world.
OP powers over $7 billion in TVL, proving that solutions built on Optimism are gaining serious attention. The Base network has also seen explosive growth, with over $15 billion in TVL. Optimism and Base chain prove that the layer 2 world maintains steady growth with its established DeFi ecosystem.
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