On-chain analysts point out that Ethereum's dominant position in the cryptocurrency market is showing a trend reversal. Since December 2022, the proportion of capital flow for Ethereum on mainstream trading platforms has remained below 35%, significantly shrinking from over 50% in September 2021, indicating a significant decrease in its attractiveness as a trading medium. This time frame coincides with the completion of Ethereum's beacon chain merger and a full transition to the Proof of Stake (PoS) mechanism, creating a strong resonance between technological changes and market performance.
More noteworthy is that since that month, the MVRV indicator (Market Value/Realized Value Ratio) for Bitcoin and Ethereum has shown historic divergence. The alternating leadership between the two over the past seven years has been broken, with Bitcoin's MVRV ratio continuously suppressing that of Ethereum, indicating that the unrealized gains of Ethereum holders have long been below those of Bitcoin. On-chain data also synchronously shows that although both major assets face a shrinkage in capital inflow, Bitcoin still maintains a monthly average net inflow of $5.4 billion, while Ethereum has shifted to a net outflow status since mid-February this year, with a net outflow of $6.2 billion in the past 30 days.
Analysts emphasize that in the context of declining market sentiment, fund allocation tends to become the core variable determining price trends. For Ethereum to revive its upward momentum, it needs to break through the current dilemma of low fund attention, and the technological transformation at the end of 2022 may have become a strategic turning point for its market position.
