- On Tuesday, Bitcoin’s price stabilized above $81,000, maintaining a narrow 5% range over the past week.
- The BTC/ETH trading ratio reached record highs ahead of Ethereum’s Hoodi update, underscoring the smart-contract platform’s ongoing scalability challenges.
- Edan Yago, CEO of BitcoinOS, discussed the promising future of Bitcoin-based decentralized finance (DeFi) ventures, potentially seizing market share from Ethereum shortly.
- This week, Bitcoin’s DeFi total value locked (TVL) hit $5 billion as Ethereum faces hurdles with network upgrades.
Bitcoin remained below $85,000 on Monday, influenced by gold reaching record highs and media attention focused on Ethereum’s Hoodi update.
In a revealing FXStreet interview, BitcoinOS CEO Edan Yago shared insights on how DeFi protocols on the Bitcoin network could provide competitive yield opportunities as Ethereum faces difficulties due to recent network upgrades.
BTC/ETH Ratio Soars as Bitcoin Outpaces Ethereum by 30%
When Ethereum launched in 2015, it was expected to surpass Bitcoin in market capitalization due to its ambitious plans for decentralized finance via smart contracts. As of March 2025, however, Bitcoin has not only maintained its lead but has also set new records.
Although Ethereum initially closed the gap, following the notable Merge in September 2022, which transitioned Ethereum from Proof-of-Work to Proof-of-Stake, Bitcoin has consistently outperformed it. Notably, this month, the valuation gap between Bitcoin and Ethereum widened by an impressive 30% to achieve new all-time highs.
The BTC/ETH trading ratio, which denotes real-time asset prices, peaked at 44.6 on March 14, showcasing that at current prices of $81,000 for Bitcoin and $1,800 for Ethereum, one Bitcoin can purchase over 44 ETH—a significant increase from a 1:33 ratio noted recently.
Ethereum’s Challenges Endanger its $100B DeFi Ecosystem
Ethereum’s declining value is attributed to recent factors, including Trump’s new trade tariff policies, which have unsettled macroeconomic conditions, making crypto investors favor BTC. Historical trends suggest that Ethereum started its downturn around the time of the Merge, compounded by glitches in network upgrades leading to excess ETH supply.
The Ethereum Foundation has been trying to rectify this with leadership changes. However, market sentiment remains lukewarm following the recent Pectra and Hoodi updates, raising concerns that Ethereum’s lackluster price performance and failed updates could jeopardize its $100 billion DeFi ecosystem, potentially driving investors towards alternative DeFi platforms.
- Edan Yago mentioned that it’s only a matter of time before Bitcoin’s growing market power transfers to Bitcoin’s DeFi projects.
BitcoinOS is a modular, open-source initiative aimed at facilitating fast and low-cost transactions on the Bitcoin blockchain, enabling smart contracts that can interact with other chains, including Ethereum Virtual Machine (EVM).
In an interview with FXStreet, Yago explained how Ethereum’s current challenges alongside favorable regulatory clarity stemming from Trump’s policies position Bitcoin DeFi projects to capture increasing market interest.
Conclusion:
As Ethereum continues to deal with scalability issues and network inefficiencies, Bitcoin’s market strength is solidifying. The BTC/ETH trading ratio reaching 44.6 this week signifies a shift in capital towards Bitcoin in trading environments.
As Ethereum struggles, threatening its $100 billion DeFi ecosystem, projects native to Bitcoin are gaining momentum. According to Edan Yago, Bitcoin’s increasing dominance may significantly influence DeFi protocols. With clarity in regulations and growing institutional engagement under Trump, Bitcoin-centric financial applications are set to impact the DeFi landscape considerably in the months ahead.
