Ethereum $1,956.30/Bitcoin ratio continues harshly. According to Cryptoquant data, the ETH/BTC ratio fell into a perennial decline zone. At the end of 2021 around 0.08, the current value is 0.019. Investors do not see this decline as a sign of a clear recovery because Ethereum’s network activity and decline in corporate investor interest frighten.
Factors behind the hard decline in the rate
ETH/BTC The ratio fell from 0.08 to the end of the end of 2021 to 0.019 as of today. This means a loss exceeding 75 percent. Cryptoquant’s MVRV Metric MVRV is based on the difference between the market value and the value of the value and points to the perennial bottom point. Although historical data show that similar decreases sometimes coincide before recovery, there is no clear return sign for the time being.
Investors EthBitcoin 
$99,683.26He remembers the periods when he stayed strong in the long run. However, the deep drop in MVRV shows that psychology in the crypto money market is shy. The low course of the ratio is a harbinger of a bull run or the signal of the pressure will continue. Experts propose to evaluate with other metrics based on this situation. Analysts closely follow Ethereum’s correlation with different classes of assets.
There is stagnation in the Ethereum network and corporate demand
Ethereum’s update of Dencun, which was implemented in March 2024, rapidly reduced the transaction fee and coin burning rate. The trading fees declined thoroughly, but the coin burning activity was almost reset. The increase in the total supply has completed the value production dynamics of the network. On the other hand, Layer 2 solutions such as Arbitrum and Base alleviated the traffic on the main network. Many users turned to alternative networks with faster processing.
ETH positions of corporate investors also decreased. While the stinging volume decreased, ETH and ETH balances on the funds fell. Cryptoquant says that the decrease in fund amounts signals a decrease in market confidence. Bitcoin continues to approach 100 thousand dollars by maintaining its safe port feature in uncertainty. Fund managers review their strategies to diversify their portfolios.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
