Analyst: Ethereum MVRV has shown a diverging trend since 2022, with a key inflection point at the transition to PoS

BlockBeats News, April 20th, On-chain data analyst Murphy published an analysis of ETH based on token flow and value ratio. The percentage of ETH's on-platform traffic has dropped below 35% since the end of December 2022. This number had previously exceeded 50% in September 2021, indicating that in the flow in/flow out ratio on the trading platform, ETH used to be on par with BTC, but the percentage has now significantly decreased, suggesting that attention to ETH is waning.

Starting from December 2022, a clear divergence has emerged between Bitcoin's MVRV (Market Value to Realized Value ratio) (blue line) and Ethereum's MVRV (yellow line). Prior to this, for 7 years, this indicator had always alternated dominance, with either ETH stronger or BTC stronger at different times. However, the blue line has consistently remained below the yellow line, indicating that since December 2022 until today, the unrealized profits of ETH holders have always been lower than those of BTC. Whether from exchange platform data or on-chain data, the turning point for Ethereum's trend seems to have been December 2022. Coincidentally, on September 15, 2022, the Ethereum mainnet merged with the Beacon Chain, completely ending PoW mining and transitioning to the PoS consensus mechanism, and everything changed after that.

As the weakening trend of sentiment subsides, the capital inflow into the two major mainstream assets, BTC and ETH, has significantly decreased 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 as of yesterday. 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.