Ethereum Price Halves as Capital Flees Despite Record Network Activity
Ethereum’s market price has dropped by about 50% while network activity — transactions, active addresses and gas usage — sits at or near record levels. The divergence suggests that heavy on-chain usage is not translating into new buying demand; instead, liquidity appears to be moving out of ETH into stablecoins, other tokens or fiat, and traders are reducing exposure despite strong technical throughput. This split matters because it challenges the narrative that on-chain growth automatically supports price appreciation. Analysts point to factors such as macro pressure, profit-taking after earlier rallies, lower yields in DeFi relative to risk, and increased staking and withdrawals dynamics as possible explanations. Investors should watch capital flow metrics, exchange balances and major outflows to understand whether the disconnect is temporary or signals a longer revaluation of ETH.