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Ethereum bags $704 mln in weekly inflows… Yet $603 mln walks out the back door
In a shocking turn of events, Ethereum has once again proven its dominance in the blockchain capital flows, as it raked in an astonishing $704 million in weekly inflows. While this news may seem like a coup for the second-largest cryptocurrency by market cap, a staggering $603 million simultaneously walked out of the ecosystem, raising questions about the nature of these inflows and their implications on the future of Ethereum.
It is crucial to understand that this seeming contradiction has been seen before in Ethereum’s price action. In December 2024, ETH’s price plummeted by 50.6%, a decline that was preceded by a massive outflow of 208K ETH from exchanges, indicating panic selling. Fast forward to the present, and it appears that the market is once again priming itself for such an event.
However, there may be more to these outflows than initially meets the eye. Ethereum’s price has been steadily decreasing since its peak in late 2024, which may have triggered this flight of capital. It could be argued that investors are merely rotating their assets within the ecosystem, as the data suggests that inflows and outflows don’t just follow price; they often precede it.
Furthermore, Vitalik Buterin’s recent announcement of a new forward-looking “multi-proof” Layer-2 model that combines optimistic, zero-knowledge, and TEE-based verification may be having an unexpected impact on investor sentiment. While some may view this development as speculative, others might see it as a sign of Ethereum’s resilience in the face of adversity.
Despite these outflows, Ethereum’s position as DeFi’s liquidity backbone remains unchallenged. The data clearly indicates that Binance Smart Chain (BSC), Solana, and Avalanche are all experiencing significant capital erosion, while Ethereum continues to absorb over 90% of positive inflows, a trend that is unlikely to change anytime soon.
In conclusion, the $704 million in weekly inflows may seem like an anomaly in the face of these massive outflows. However, it’s essential to recognize that Ethereum remains the most trusted and widely used blockchain platform in the market, which should provide a foundation for its future growth, even if the short-term price action appears volatile.
Disclaimer: The information provided here is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.
Source: https://ambcrypto.com/ethereum-bags-704m-in-weekly-inflows-yet-603-mln-walks-out-the-back-door
