Rising stablecoins, tokenized assets, and network activity echo the 2019 recovery cycle
Ethereum may be entering a renewed growth phase after a prolonged period of underperformance against Bitcoin. ETH-BTC ratio bottoming in April 2025, a pattern that closely resembles the market structure seen in 2019 before Ethereum’s previous major rally.
ETH-BTC Ratio Mirrors Historical Market Cycles
The ETH-BTC ratio, which measures Ethereum’s relative strength compared to Bitcoin, declined for nearly four years before stabilizing around 0.017 in April 2025. From that low, the ratio rebounded sharply, reaching a local peak near 0.043 by August before settling around 0.034 following a broader market correction. Similar sentiment-driven declines preceded strong recoveries in earlier cycles, reinforcing the comparison to 2019.
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Stablecoin Growth Strengthens Ethereum Fundamentals
One of the strongest signals supporting Ethereum’s recovery is the rapid expansion of stablecoins on the network. Ethereum’s stablecoin supply grew more than 65% in 2025 and has doubled compared to its 2021 peak. Total stablecoin market capitalization on Ethereum now exceeds $163.9 billion, with dollar-pegged assets accounting for a majority share.
Ethereum continues to dominate tokenized real-world assets and settlement activity. In the final quarter of 2024 alone, the network processed approximately $8 trillion in stablecoin transfer volume, highlighting its role as critical financial infrastructure.
Despite periodic pullbacks, Ethereum briefly reclaimed its 365-day moving average earlier this year, signaling improving long-term momentum. Current sentiment patterns resemble conditions that historically preceded sustained upside moves, suggesting Ethereum’s market position may be stabilizing after years of relative weakness.
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This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.