COINOTAG News reports that on April 20th, on-chain data analyst Murphy presented a detailed evaluation of Ethereum (ETH) concerning token flow and value ratios. Since the conclusion of December 2022, ETH has experienced a decline in on-platform traffic, falling below 35%, a stark contrast to its previous rate exceeding 50% in September 2021. This trend indicates a decreased engagement level, with ETH’s flow in and out ratio lagging behind that of Bitcoin (BTC), suggesting a diminishing focus on ETH within the trading platform.
Since December 2022, a notable divergence has been observed between BTC’s MVRV (Market Value to Realized Value ratio) and ETH’s, with the former consistently underperforming. This marks a significant shift from the previous seven years of alternating dominance. The critical turning point coincides with the Ethereum mainnet merge with the Beacon Chain on September 15, 2022, ending the PoW mining era and adopting a PoS consensus mechanism.
Despite a general decline in capital inflow into both BTC and ETH since December, Bitcoin has sustained a positive inflow of $5.4 billion over the last month. In contrast, Ethereum has faced a stark net outflow of $6.2 billion since February 15. The allocation of capital remains a critical determinant of market sentiment and pricing trends; hence, for ETH to rejuvenate its position, it must regain interest from investors.