Cryptocurrency Market Announcement
On May 8, a report from CoinDesk indicated that the ETH/BTC ratio has entered the "extremely undervalued" zone. Historically, this has often been a bullish signal. However, with the current market environment, traders expecting a strong recovery of Ethereum should be cautious.
On-chain data company CryptoQuant indicates that the market value to realized value (MVRV) ratio of ETH/BTC has fallen to a multi-year low. Previously, this ratio predicted that ETH would outperform BTC, but currently, Ethereum network activity is flat. Metrics like transaction volume and active addresses are showing weak growth.
The increase in the total supply of Ethereum is related to a sharp decline in burn fees, primarily due to the Dencun upgrade in March 2024, which reduced transaction fees. Since 2021, activity on the Ethereum network has stagnated, with no significant on-chain expansion. At the same time, the growth of Layer 2 solutions has weakened ETH's ability to accumulate value, and institutional demand is also cooling off.
The amount of ETH committed and the balance of ETH in investment instruments are both decreasing, highlighting an overall decline in institutional demand. This content is intended solely for market information and does not constitute investment advice.
Source: https://tintucbitcoin.com/ty-le-eth-btc-eth-bi-danh-gia-thap-nhung-van-gap-can-tro/
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