PANews reported on May 8 that according to CoinDesk, the ETH/BTC ratio has entered the "extremely undervalued" area. From a historical perspective, this is usually a bullish signal, but in the current market environment, traders betting on a sharp rebound in Ethereum may need to be cautious. CryptoQuant, an on-chain data company, pointed out that the market value to realized value (MVRV) ratio of ETH/BTC has fallen to a multi-year low, although the ratio had previously predicted that ETH would outperform BTC. However, the current Ethereum network activity is flat, and indicators such as the number of transactions and active addresses are growing weakly. In addition, the increase in the total supply of Ethereum is related to the sharp drop in destruction fees, which is mainly due to the Dencun upgrade in March 2024 that reduced transaction fees. Since 2021, Ethereum network activity has stagnated, and there has been no significant expansion of activity on the base layer chain. At the same time, the growth of Layer2 solutions has weakened ETH's value accumulation narrative, and institutional demand is also cooling. The number of pledged ETH and the ETH balance in investment tools have both declined, highlighting the overall decline in institutional demand.