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

On April 20th, on-chain data analyst Murphy released an analysis of ETH based on token flow and value ratio. Since the end of December 2022, the percentage of ETH's on-platform traffic has dropped below 35%. Previously, in September 2021, this number exceeded 50%. This indicates that in the flow in/flow out ratio on the trading platform, ETH used to be on an equal footing with BTC, but now the percentage has significantly decreased, suggesting that the 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). Before this, for 7 years, this indicator always alternated in terms of dominance, with either ETH being stronger or BTC being stronger at different times. However, the blue line has consistently been 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 looking at exchange platform data or on-chain data, the turning point for Ethereum's trend seems to be 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 in 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 in determining price and trends, and for ETH to revive its trend, it will need to wait for renewed attention from capital.