- The price of Bitcoin maintained stability above $81,000 on Tuesday, hovering within a narrow 5% range over the past week.
- The BTC/ETH trading ratio reached unprecedented highs ahead of Ethereum’s Hoodi update as the smart-contract platform continues to grapple with scalability issues.
- Edan Yago, CEO of BitcoinOS, has emphasized the potential for Bitcoin-native decentralized finance protocols to capture Ethereum’s market share in the near future.
- This week, Bitcoin DeFi’s total value locked (TVL) reached $5 billion, as new capital inflows are anticipated while Ethereum faces challenges with network updates.
On Monday, Bitcoin prices remained just below $85,000, influenced by gold’s surge to all-time highs and the ongoing focus on Ethereum’s Hoodi update.
In a recent interview, Edan Yago provided insights into the competitive advantages Bitcoin-native decentralized finance protocols could have as Ethereum struggles with a series of unsuccessful updates.
BTC/ETH Ratio Peaks as Bitcoin Gains 30% Over Ethereum in Three Weeks
When it launched in 2018, Ethereum was predicted to surpass Bitcoin in market capitalization, largely because of its potential for decentralized finance through smart contracts. As of March 2025, however, Bitcoin’s ecosystem has widened its lead significantly.
Initially, Ethereum narrowed the gap, but since the infamous Merge, which transitioned to Proof-of-Stake in September 2022, Bitcoin has consistently outshone Ethereum.
BTC/ETH Ratio | March 18, 2025 | TradingView/Vantage
Remarkably, the valuation difference between Bitcoin and Ethereum expanded by 30% in March 2023 and has recently reached new historical highs, further widening since March began.
The BTC/ETH trading ratio, which reflects the real-time pricing of both cryptocurrencies, peaked at an all-time high of 44.6 on March 14.
With Bitcoin priced at $81,000 and Ethereum at $1,800, this means 1 BTC can currently acquire more than 44 ETH, a notable increase from the 1:33 ratio seen at recent lows on February 25.
Bitcoin’s 30% gain relative to Ethereum in just one month indicates that investors are increasingly allocating their resources toward Bitcoin as Ethereum continues to face scalability concerns.
Concerns Over Ethereum Network Misses Threaten $100B DeFi Ecosystem
Ethereum’s decline can be attributed to two primary factors. Recently, Trump’s updated trade tariff policies have disrupted the macroeconomic environment, prompting crypto investors to prioritize Bitcoin as a safer option.
Additionally, historical data illustrates that Ethereum’s downtrend began around the time of the Merge, coupled with various update issues leading to ETH supply surpassing pre-merge levels.
The Ethereum Foundation has made urgent efforts to rectify its course, including a leadership change in late February.
However, market sentiment following the two latest Ethereum updates, Pectra and Hoodi, indicates that confidence has not rebounded.
Growing fears that Ethereum’s lackluster price performance and network update failures could jeopardize its $100 billion DeFi market may redirect investor interest to alternative DeFi ecosystems.
According to Edan Yago, it’s merely a question of time before Bitcoin’s increasing market dominance influences Bitcoin DeFi protocols.
BitcoinOS is an open-source, modular initiative aimed at facilitating quick, low-cost transactions on the Bitcoin blockchain, with the ability to deploy smart contracts that work with the Ethereum Virtual Machine (EVM) and other networks.
In a recent discussion, Edan Yago provided expert commentary on how Ethereum’s current challenges and clear regulatory frameworks from Trump’s recent policy changes position Bitcoin DeFi projects well to capture more market share.
- Question 1 (Q1): Is Bitcoin a valid alternative for DeFi amid Ethereum’s network congestion issues?
Edan Yago: “We consider Bitcoin a superior solution for DeFi, rather than just an alternative. The main flaw in Ethereum’s strategy is its dependence on multiple Layer 2 solutions, which create user friction and liquidity fragmentation. Bitcoin circumvents these issues by allowing seamless interoperability across various chains while maintaining security.”
This ensures that while Ethereum struggles with rollups and gas fees, Bitcoin DeFi protocols become increasingly attractive to developers and investors.”
- Q2: Could Trump’s Bitcoin Strategic Reserve catalyze institutional adoption of Bitcoin-backed DeFi products?
Edan Yago: Absolutely. We are currently witnessing BitcoinOS being utilized to create Bitcoin-backed stablecoins like USBD from BIMA Labs.
This signifies a fundamental shift from the old model where Bitcoin merely sits in cold storage as a dormant asset.
Now, institutions can unlock yield-bearing opportunities for BTC while ensuring that their exposure remains non-custodial and trust-minimized.
This is critical as regulatory frameworks evolve, making it evident that Bitcoin is the optimal foundational layer for high-grade financial infrastructure.
- Q3: What are the risks associated with Bitcoin-native DeFi, and how does BitcoinOS address these risks?
Edan Yago: Like any nascent industry, Bitcoin-native DeFi carries risks, including smart contract vulnerabilities, liquidity fragmentation, and user experience challenges. Nonetheless, BitcoinOS has specifically crafted its framework to mitigate these risks.
- Q4: What role do decentralized autonomous organizations (DAOs) play within the Bitcoin DeFi ecosystem?
Edan Yago: DAOs are vital to the ecosystem, as they support decentralized governance and capital allocation for Bitcoin-native DeFi initiatives. By utilizing on-chain governance models, DAOs at BitcoinOS ensure that decision-making authority is distributed among a community of stakeholders rather than being centralized. They manage treasuries, fund development, and enforce protocol rules without intermediaries.”
- Q5: Can Bitcoin empower real-world financial applications?
Edan Yago: Yes, by leveraging scalable zero-knowledge solutions, Bitcoin can enable high-throughput, low-cost transactions that traditional banking systems struggle to handle.
For example, Bitcoin-backed stablecoins and decentralized lending platforms built on BitcoinOS could transform how individuals and businesses engage with financial services, reducing inefficiencies and the need for intermediaries.”
- Q6: How do traditional financial institutions view Bitcoin DeFi compared to Ethereum DeFi?
Edan Yago: Traditional financial institutions are more inclined to explore Bitcoin-native DeFi as Bitcoin is recognized for its security and reliability. While Ethereum’s ecosystem is innovative, its dependence on complex smart contracts and fragmented Layer 2 solutions increases risks for institutional investors.
By presenting a more secure and cohesive framework, BitcoinOS is bridging the gap between traditional finance and decentralized finance, facilitating easier participation in DeFi without compromising security or regulatory compliance.
In Summary:
As Ethereum wrestles with scalability hurdles and network inefficiencies, Bitcoin’s market supremacy continues to grow. The BTC/ETH trading ratio reaching an all-time high of 44.6 this week reflects a pronounced shift in capital towards Bitcoin in the spot market.
As Ethereum’s lackluster performance potentially endangers its $100 billion DeFi ecosystem, Bitcoin-native projects are gaining momentum. Edan Yago implies that the widening price dominance of Bitcoin over Ethereum could similarly impact DeFi protocols.
With increasing regulatory clarity and the rising institutional adoption of Bitcoin under Trump, Bitcoin-backed financial applications are set to make a significant impact on the decentralized finance landscape in the upcoming months.