Ethereum's On-Platform Traffic Drops 15% Since December 2022

On-chain data analyst Murphy recently published an analysis of Ethereum (ETH) based on token flow and value ratio. The analysis revealed that the percentage of ETH's on-platform traffic has dropped below 35% since the end of December 2022. This is a significant decrease from September 2021, when the percentage exceeded 50%, indicating that ETH's prominence in the flow in/flow out ratio on trading platforms has diminished, suggesting waning attention to ETH.

Since December 2022, a clear divergence has emerged between Bitcoin's MVRV (Market Value to Realized Value ratio) and Ethereum's MVRV. Prior to this, for seven years, these indicators had alternated in dominance, with either ETH or BTC being stronger at different times. However, since December 2022, the MVRV of ETH has consistently remained below that of BTC, indicating that the unrealized profits of ETH holders have been lower than those of BTC holders. This trend shift coincides with Ethereum's transition to the Proof of Stake (PoS) consensus mechanism on September 15, 2022, when the Ethereum mainnet merged with the Beacon Chain, ending Proof of Work (PoW) mining.

The weakening trend in sentiment has led to a significant decrease in capital inflow into the two major mainstream assets, BTC and ETH, since December last year. However, BTC still maintains a positive inflow of $5.4 billion over the past 30 days. In contrast, ETH has shifted to a net outflow since February 15 and has seen an outflow of $6.2 billion in the last 30 days. The attitude of funds is a crucial factor determining price and trends, and for ETH to revive its trend, it will need to wait for renewed attention from capital.