The exchange rate between Ethereum and Bitcoin (ETH/BTC) fell below 0.02 today, hitting a five-year low, even lower than in early 2020, triggering panic and doubt in the community. Experts suggest that this represents the complete erosion of Ethereum's belief over the past five years from a market perspective.
Ethereum has recently suffered severe market sell-offs, with its exchange rate against Bitcoin (ETH/BTC) dropping below 0.02 today (7th), reaching its lowest point since early 2020. This indicates extreme market distrust in Ethereum compared to Bitcoin, making it a priority for asset liquidation. Simultaneously, the community has intensified its criticism of Ethereum, placing it in a dual trust crisis.
Tariff War Reveals Asset's True Nature
Today's Trump tariff war news continued to develop during Asian market opening, not only causing futures market circuit breakers but also triggering significant drops in Japan, Hong Kong, South Korea, and Taiwan. In this context, the crypto market also experienced a massive crash. Bitcoin fell to $77,000, and Ethereum was hit even harder. The "ETH/BTC" ratio, considered a DeFi arbitrage stability indicator in the crypto space, dropped by 7.5% within 24 hours, showing that market exodus from Ethereum was far faster than Bitcoin, even briefly falling below 0.02 and returning to 2020 levels.
BlockBeats interviewed an anonymous crypto market expert who stated this is a massive warning signal for Ethereum, especially as the market believes Ethereum's achievements over the past five years have vanished, severely undermining investor confidence:
ETH/BTC should have been a relatively stable trading pair compared to stablecoins and other tokens, which is why many large investors use this indicator to judge market stability, and investing in such liquidity has much lower impermanent loss than other assets.
But when you see this ratio drop 5% in a day, such volatility is already at a single-currency level, and even hedgers specializing in such liquidity cannot avoid losses. This is a massive blow to long-term investors, especially those still bullish on Ethereum. Many believers who entered at 0.13 and provided liquidity until now at 0.02 have seen their value drop to less than one-sixth. I know many Ethereum believers have already left heartbroken...
Ethereum's Decline Became Apparent in 2024
Although it seems the Trump tariff war exposed Ethereum's true nature, in reality, Ethereum has shown numerous signs of decline since 2024. Not only has Ethereum's key figure Vitalik been heavily criticized by the community, but many internal ecosystem members, supporters, and investors have openly criticized the Ethereum Foundation's lack of action since 2024, ultimately leading to recent reviews and reorganization.
However, the reorganization clearly did not quell the community's anger. In the week before this major drop, three community FUD news items emerged, all from former Ethereum allies, such as Base game developers, Ethereum OGs, and venture capital firm Paradigm, who attacked Ethereum's issues ranging from culture and decision-making to programming language and foundation corruption.
Ethereum also saw a new batch of senior management this year, including some female executives like new chair Aya Miyaguchi and new executive director Wang Xiaowei. However, these new leaders have also sparked community controversy. For instance, Aya Miyaguchi once stated on social platforms that she believes Ethereum's purpose is "Ethereum is valuable, and we can sell it to support developers," a statement that generated significant controversy, showing the massive gap between the foundation's internal perspective and broader user base.
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