Ether-Bitcoin Ratio Signals ETH is 'Extremely Undervalued,' But Headwinds Remain: CryptoQuant

By: coindesk|2025/05/08 20:45:01

The ether-bitcoin (ETH/BTC) ratio has reached an “extremely undervalued” zone in a move that flashes a historically bullish signal — but traders betting on a sharp ether (ETH) recovery may want to pause. According to data from on-chain data firm CryptoQuant, the ETH/BTC market value to realized value (MVRV) ratio has dropped to multi-year lows to reach levels that have previously marked periods of ETH outperformance against BTC. The exchange rate for the two tokens, conventionally called a ratio, peaked above 0.08 in late 2021. The ETH/BTC ratio was 0.019 at press time, down more than 75% from record highs. MVRV is a metric that compares a token’s current market cap to its realized capitalization, or the value of each coin based on the price it was last moved on the blockchain. This effectively reflects the average cost basis of all coins in circulation. But the setup may not be as straightforward this time. Network activity remains flat and core usage metrics like transaction count and active addresses have seen little momentum since the last bull run, CryptoQuant said. The increase in ether total supply is directly tied to the sharp decline in fees burned, as shown in the above chart, showing burn activity falling to near zero. The reason behind this shift is the Dencun upgrade, implemented in March 2024, which significantly reduces transaction fees across the network, the firm said. Ethereum’s network activity has remained largely flat since 2021, with no sustained growth in usage over the past three years. This stagnation is echoed across key metrics such as transaction volume and active addresses, indicating that Ethereum's base layer has not experienced meaningful expansion in on-chain activity. Meanwhile, the growth of Layer 2 solutions such as Arbitrum and Base has come at the cost of mainnet activity. This cannibalization dynamic reduces base layer fees and weakens ETH’s value accrual narrative. Institutional demand is also cooling: “Investor demand for ETH as a yield and institutional asset is weakening, as evidenced by declining staked ETH and lower balances held by ETFs and other investment vehicles,” CryptoQuant wrote. “The total value staked has fallen from its all-time high, while fund holdings continue to trend downward, indicating reduced confidence from crypto-native participants and traditional investors,” it added. The amount of ETH staked has declined notably from it's all-time high of 35.02 million ETH in November 2024 to around 34.4 million ETH, suggesting that investors may be reallocating capital or seeking more liquid positions amid a less favorable market environment. Additionally, ETH balances in investment products have fallen by about 400,000 ETH since early February, highlighting a broader decline in institutional demand. Meanwhile, bitcoin has continued to rise despite a macroeconomic environment, touching nearly $100,000 earlier on Thursday as its appeal as a safe-haven asset grows among investors.

Currently, most Web3 projects are still in the stage of functional fragmentation, often focusing only on a single aspect, such as IP asset tokenization, transaction functionality, or a simple incentive model. This structural dispersion has become a key bottleneck hindering the industry's scale application.

BeatSwap's approach is more integrated, integrating multiple core modules into the same system, including:

· IP authentication and on-chain registration

· Authorization-based revenue sharing mechanism

· User-engagement-driven incentive system

· Transaction and liquidity infrastructure

Through the above integration, the platform builds an end-to-end closed-loop path, allowing IP rights to complete a full cycle of "creation, use, and monetization" within the same ecosystem.

Expanding from Web3 to a broader market: Restructuring the music industry's supply-demand structure

BeatSwap is not limited to existing crypto users but is attempting to take the global music industry as a starting point, actively creating new market demand. Its core strategies include:

Exploring and incubating music creators (Artist discovery)

Building a fan community

Igniting IP-centric content consumption demand

The current global music industry is valued at around $260 billion, with over 2 billion digital music users. This means that the potential market corresponding to the tokenization and financialization of IP far exceeds the traditional crypto user base.

In this context, BeatSwap positions itself at the intersection of "real-world content demand" and "on-chain infrastructure," attempting to bridge the structural gap between content production and financial flow.

"Space" to Launch in Q2 2026: Building the Core of SocialFi

BeatSwap's upcoming core product "Space" is scheduled to launch in the second quarter of 2026. This product is defined as the SocialFi layer in the ecosystem, aiming to directly connect creators with users and achieve deep integration with other platform modules.

Key designs include:

A fan-centric interactive mechanism

Exposure and distribution logic based on $BTX staking

User paths connected to DeFi and liquidity structures

Thus, a complete user behavior loop is formed within the platform: Discovery → Participation → Consumption → Rewards → Trading

$BTX Token Mechanism: Evolving from an Incentive Tool to a Value Carrier

$BTX is designed to be a core utility asset within the ecosystem, rather than just a simple incentive token, with its value directly tied to platform activity and IP use cases.

Main features include:

· Yield distribution based on on-chain authorized actions

· Value reflection based on IP usage and user engagement dynamics

· Support for staking and DeFi participation mechanisms

· Value growth driven by ecosystem expansion

With the increased frequency of IP use, the utility and value support of $BTX will enhance simultaneously, helping alleviate the "disconnect between value and utility" issue present in traditional Web3 token models to some extent.

Accelerating Global Exchange Layout: Enhancing Liquidity and Accessibility

Currently, $BTX has been listed on several mainstream exchanges, including:

Binance Alpha

Gate

MEXC

OKX Boost

As the launch of "Space" approaches, BeatSwap is actively pursuing more exchange listings to further enhance liquidity and global accessibility, laying a foundation for future market expansion.

Beyond Web3: Aiming for a Larger-Scale Integration of Content and Finance Markets

BeatSwap's goal is no longer limited to the traditional Web3 narrative but aims to target over 2 billion digital music users and a trillion KRW-scale content market.

By integrating content creators, users, capital, and liquidity into a blockchain framework centered around IP rights, BeatSwap is striving to build a next-generation infrastructure focused on "IP tokenization."

Conclusion

BeatSwap integrates IP authentication, authorization distribution, incentive mechanism, transaction system, and market construction to establish a unified structure that bridges the full lifecycle path of IP rights.

With the launch of the Q2 2026 "Space," the project is expected to become a key infrastructure connecting content and finance in the IP-RWA (Real World Assets) track.

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