Is Ethereum Ready for a Surge? Examining the Promising ETH/BTC Ratio

The ETH/BTC ratio shows encouraging signs, having seemingly bottomed in April, with developments reminiscent of the trends in 2019. Ethereum's development activity remains robust, and the flow of value into tokenized assets on the platform is increasing. Though the market may be focused elsewhere at the moment, Ethereum could be on the brink of a significant upswing.

Key Takeaways

The ETH/BTC ratio has recently stabilized after a prolonged downturn.
Comparisons are being made to past cycles, particularly 2019, suggesting potential recovery.
Stablecoin balances on Ethereum have surged, indicating strong institutional and user confidence.
Ethereum continues to serve as a key settlement layer, achieving record high transfer volumes.

Understanding the Current Shift in ETH/BTC Dynamics

The ETH/BTC trading pair has experienced a downward trend for close to four years, leading many observers to underestimate Ethereum's relative performance against Bitcoin. However, this decline seems to have halted in April 2025, as the ETH/BTC ratio has found support and begun to stabilize.

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Market analyst Michael van de Poppe has noted parallels to the 2019 cycle, where ETH/BTC faced similar challenges before initiating a recovery phase. Since then, the price has shown positive trends, with higher lows being established on the chart. Though the upward movement has been gradual, it appears that Ethereum could be emerging from its weakest relative phase against Bitcoin.

Surge in Stablecoins on the Ethereum Network

Despite Ethereum's price challenges, there has been a significant rise in stablecoin balances on its network. In 2025, the stablecoin supply on Ethereum increased by over 65%, now sitting at approximately double the previous peak in 2021.

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This growth is noteworthy as stablecoins often represent idle capital. An increasing balance indicates that both users and institutions are still seeing value in Ethereum. Van de Poppe interprets this positively, suggesting that a rise in stablecoin liquidity typically precedes an uptick in overall activity on the platform.

Ethereum's Robust Backbone Remains Strong

Currently, stablecoins on Ethereum hold a market value of approximately $160-170 billion, according to DeFiLlama. This figure marks a record high, significantly surpassing previous cycle peaks and demonstrating continued expansion even as ETH prices remain stable.

Usage metrics have mirrored this upward trajectory. Token Terminal reports that stablecoin transfer volumes on Ethereum exceeded $8 trillion in the fourth quarter of 2025, reaching an all-time high.

Ethereum continues to be the preferred settlement layer for dollar-denominated transactions, further solidifying its importance in the cryptocurrency ecosystem.

Conclusion

In summary, while Ethereum has faced challenges in price, the underlying indicators such as stablecoin growth and transaction volume suggest a potentially bright future. If the trends continue, Ethereum might be poised for a significant upswing in the near future.