Ethereum’s native cryptocurrency, Ether (ETH), is falling behind rival tokens as President Donald Trump’s venture into the memecoin market has bolstered competing blockchains like Solana. The Ether-to-Bitcoin price ratio dropped to its lowest level since 2021 on Monday, while Bitcoin hit a record high of $109,241, according to Bloomberg data. Meanwhile, Solana’s native token reached new highs over the weekend, driven by frenzied trading of memecoins launched on its network.
Trump Memecoins Spark Solana Surge
The rally in Solana was fueled by two memecoins launched on its blockchain by Trump and First Lady Melania Trump in the lead-up to his inauguration. The “Trump” memecoin briefly hit a market capitalization of $15 billion over the weekend before experiencing sharp volatility, as reported by CoinMarketCap.
“Ether has definitely been a loser in the recent memecoin wave, as many of the largest memecoins have come about on the Solana ecosystem,” said Le Shi, managing director at market-making firm Auros in Hong Kong.
Solana has branded itself as an “Ethereum killer” and has increasingly become the platform of choice for memecoin launches, attracting speculative investors. On Sunday, the Solana-to-Ether price ratio hit an all-time high as traders flocked to Trump’s tokens.
Ether’s Comparative Struggles
Ether has struggled to capitalize on the crypto market’s recent gains. The token remains approximately 30% below its 2021 peak, despite a 39% increase over the past 12 months. By comparison, Bitcoin has surged 156%, and Solana has risen 180% during the same period.
Investors have shown muted enthusiasm for Ether, with exchange-traded funds (ETFs) focused on Bitcoin drawing over $17 billion in net inflows in the past three months, compared to just $3 billion for Ether-focused ETFs, according to Bloomberg data.
“There is a perception in the market that Ether has not had any new, exciting developments, and thus has stagnated,” Shi explained.
Ethereum’s Road Ahead
Ethereum co-founder Vitalik Buterin has announced plans to reform the Ethereum Foundation, emphasizing decentralization and censorship resistance. However, Buterin clarified that the foundation would not engage in lobbying efforts with regulators or political figures.
Despite the initial buzz surrounding Trump’s memecoins, broader crypto markets retraced gains following his swearing-in on Monday. Investors had anticipated an executive order designating cryptocurrency as a national priority, as Bloomberg previously reported, but no such directive has yet materialized.
As Solana gains traction with memecoins and Bitcoin reaches new heights, Ether faces mounting pressure to demonstrate innovation and reclaim its position in the rapidly evolving digital asset market.
