TechFlow to TechFlow, on December 24th, Matrixport released a chart stating, "From a pricing logic perspective, the main driver of crypto asset prices remains the inflow of incremental funds, rather than changes in the number of users or application scenarios themselves. This is particularly evident in the Ethereum ETF: during a period of continuous inflow of nearly $10 billion, the price of ETH rose from approximately $2,600 to $4,500; however, when the inflow slowed, the price quickly gave back its previous gains."
In an environment where new real demand is relatively limited, Ethereum, and the broader crypto market, remains highly sensitive to marginal changes in fund flows. Compared to the previous bull market, where the main drivers revolved around narratives of "adoption, revenue, and network growth," with funds willing to pay a premium for these expectations, in this cycle, price performance depends more on where funds flow, how quickly they enter the market, and when they suddenly stop flowing.
