Ethereum's market performance has been directly impacted by this ongoing dumping, as seen by a discernible decline in transaction volume. Although Ethereum's blockchain has historically seen a lot of activity, its adoption and usefulness may be under pressure due to waning institutional confidence.
Source: DuneEthereum's switch to proof of stake (PoS) may be one factor contributing to this decline in interest. Although PoS was expected to improve scalability and efficiency, some institutional players do not seem to be convinced of its long-term advantages. Another factor contributing to investor reluctance may be the ecosystem's complexity, which includes layer-2 solutions and frequent updates.
Ethereum needs to address these issues if it wants to rebuild market strength and institutional confidence, as indicated by the widening gap in net ETF flows. Ethereum may find it difficult to hold onto its position on the larger cryptocurrency market if the dumping of ETH persists and institutions continue to lean more toward BTC.