The main cause of Ethereum’s “underperformance,” according to statistics, is another wave of misinformation about its potential security status. Passionate holders, meanwhile, don’t appear to be prepared to sell in large quantities.
Ethereum FUD causes record-breaking ETH inflow to CEXes
The supply of Ethereum (ETH) has shown inconsistent patterns throughout the last week. According to IntoTheBlock, a prominent blockchain data tracker, the total Ethereum (ETH) fees decreased by 41% as the craze for joke coins fades.
IntoTheBlock disclosed these computations in its most recent On-Chain Insights newsletter.
Additionally, Ether had the highest weekly net inflows into centralised exchanges since September 2022: $720 million was transferred to CEXes by terrified holders.
In addition to the “regular” rumours this week over Ether’s security status, a few media publications claimed that law enforcement was looking into the Ethereum Foundation.
The likelihood of Ethereum ETF approval may be called into doubt if Ethereum (ETH) is regarded as a securities in the United States.
https://x.com/intotheblock/status/1771446999323172901?s=20
Congressmen from the United States and the Coinbase CLO criticised the SEC and its leadership for failing to shield Ethereum (ETH) from a regulatory crackdown, as reported by U.Today.
“ETH underperformance is real,” IntoTheBlock says
According to IntoTheBlock statistics, Ethereum’s (ETH) poor performance is due to FUD. With the spectacular BTC surge casting a shadow over it, ETH has underperformed both Bitcoin and the S&P 500 when adjusted for risk.
Additionally, the ETH/BTC ratio is hovering around 0.05, getting closer to its lowest level since June 2022. Notably, the rise in Ethereum (ETH) halted 32% short of the ATH, whereas BTC has already surpassed its 2021 high.
Long-term investors of ETH are also not prepared to liquidate their holdings at this time. Despite the bad news, the quantity of Ethers in wallets that have been held for more than a year is rising to new heights.
