This article tells you why the price of local dog on the Ethereum chain has skyrocketed, but the price of ETH has not risen?

Please follow and like this article before reading it, because I suggested not to increase the position of ETH as early as April! ! !

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From the Fed’s interest rate cut on September 18 to now, a week has passed, and local dogs on the ETH chain, as well as ecological related tokens, have all risen sharply.

Among them, local dogs such as Mars and Neiro have made a lot of family members rich, and gwei on the Ethereum chain has also climbed to 43 (Figure 1).

However, the price of ETH itself does not seem to have rebounded significantly, and the current price fluctuates around 2,600.

I think the reasons why the price of ETH has not risen are as follows:

1. Low ETF net inflow

Since the ETH ETF began trading, the trading volume has been very low on most days, and the few days with high trading volume are mainly outflows (Figure 2)

The outflow of funds shows that institutions and large traditional investors lack interest, and traditional finance does not buy it at all! ! !

If big institutions don't buy, how can the price go up?

2. Ethereum Foundation continues to sell coins, and ETH circulation increases (Figure 3)

During this bull market cycle, the ETH Foundation has been selling coins, resulting in increased selling pressure.

In addition, after the Dencun upgrade, Ethereum fees fell by nearly 99%.

Moreover, Ethereum has now gotten rid of the state of deflation and entered a situation of inflation. In the past 30 days, Ethereum has increased its circulation by 58,000 coins (nearly 1.5 billion US dollars!),

Under the multiple pressures of official coin sales + reduced fee income + increased circulation, it is difficult for the coin price to rise!

3. Ethereum has been weak for a long time

In the financial market, it is highly likely that "the strong will get stronger and the weak will get weaker". I think this is the most important reason for Ethereum's weak performance in this round of rebound.

ETH's performance in this bull market cycle is really too poor, not as good as BTC, not as good as SOL, and if the income from Binance mining is included, it is not as good as BNB.

Put yourself in their shoes. Suppose Sol has a strong past growth and rebound, while ETH has a weak past growth and rebound, but a large decline.

If you are a large institutional/capital investor, which coin would you buy? Definitely Sol/BNB, etc.

So even if the market is good, if there is no new narrative point in Ethereum that leads to big capital embracing ETH,

ETH's growth is estimated to be not as strong as Sol.