The Ethereum-to-Bitcoin ratio has climbed to its highest level since January, driven by a massive surge in on-chain activity and record stablecoin inflows, according to coindesk.com.
The ETH/BTC ratio traded near 0.0313 on Wednesday, rebounding from a February low of approximately 0.028. While the ratio shows signs of recovery, it remains significantly below the January 18 peak of 0.038.
Ethereum gained 4% over the past seven days to trade near $2,325, slightly outpacing Bitcoin's 3.9% move during the same period. This shift in relative strength suggests a potential rotation of capital into riskier digital assets.
Ethereum network fundamentals strengthen
On-chain data reveals a significant divergence between Ethereum's current valuation and its underlying network usage. New users on the network surged 82% quarter-over-quarter in Q1 to reach 284,000, according to data from Artemis.
Total transactions also hit a record 200.4 million for the quarter, representing a 43% increase from the previous period. This growth coincides with stablecoin supply on the Ethereum blockchain reaching an all-time high of $180 billion.
According to Token Terminal, stablecoin supply on the network has grown 150% over the last three years. Ethereum currently holds roughly 60% of the global stablecoin market, acting as the primary settlement layer for tokenized dollars.
Analysts caution that the current rally may not yet represent a long-term trend. The token is still more than 50% below its 52-week high of $4,831.
Market observers note that the ratio must reclaim the 0.035 ETH/BTC level on a weekly closing basis to signal a durable rotation into ether rather than a short-lived bounce. A sustained move depends on whether ether can hold its ground during the next market pullback.
