According to the Liquidity Report by CryptoOnchain, the total market capitalization of the Ethereum ecosystem dropped by approximately $530 billion — from a peak of $1.68 trillion to around $1.15 trillion. The decline started in October 2025 and continued almost without significant pauses, reflected in the daily decrease in the ecosystem's asset values. In total, this led to a 31.5% reduction, altering ETH's relative weight within the overall cryptocurrency market structure.
Situation Overview
The CryptoOnchain report records a consistent decrease in market capitalization without short-term recovery spikes, proceeding steadily over several weeks. The current capitalization level — about $1.15 trillion — is significantly below the October peak of $1.68 trillion, resulting in the stated $530 billion reduction. For more detailed context on capitalization scales, see the article on ETH capitalization and its significance for the network's economy.
Decline Dynamics
The downward trend began in early October 2025 and was characterized by daily decreases in token values within the ecosystem. The drop was not impulsive: stable outflows and the absence of prolonged stabilization phases were observed, resulting in a cumulative 31.5% decline. The report emphasizes that the decrease represented a pure capital outflow rather than isolated corrections.
Market Impact
The capitalization reduction affected ETH's relative weight in the overall crypto market structure and influenced token categories within the network, including DeFi assets and governance tokens. Ethereum asset holders experienced declines in the dollar value of their portfolios, increasing pressure on liquidity and trading positions. Simultaneously, the report notes asset liquidations and capital transfers from certain products, similar to cases of capital outflow from ETFs and notable withdrawals from other crypto products such as crypto product fund outflows.
Expert Opinions
The CryptoOnchain report describes the current trend as primarily linked to pure capital outflow, reflected in the consistent decline of ecosystem asset values. The analysis highlights changes in market participant behavior and increased liquidation volumes, without indications of short-term recovery phases.
Why This Matters
For a miner operating one or several hundred rigs, it is important to understand that during capitalization decline, the dollar value of mined and held assets can decrease even without changes in hashrate or block rewards. This means nominal ETH revenue remains one part of the equation, while its dollar equivalent may fall amid overall capital outflows.
Additionally, capitalization decline impacts liquidity of individual tokens within the ecosystem and may increase volatility of fees and spreads on trading platforms. Low liquidity makes conversion and position exits more expensive and can lead to additional losses during partial or mass sell-offs.
What To Do?
- Check current mining profitability in dollar terms and, if needed, recalculate equipment payback based on updated asset prices. This helps assess actual earnings under current conditions.
- Consider balancing ETH accumulation with conversion to fiat/stablecoins — diversifying part of income can reduce dollar risks amid further capitalization drops.
- Monitor liquidity on exchanges and decentralized protocols: with low liquidity, plan exits from large positions gradually to minimize slippage and commission costs.
- Optimize operational expenses: review electricity rates, farm operation modes, and maintenance to reduce the cost per mined ETH unit.
- Keep records and reserve funds for unforeseen expenses — this helps endure high volatility periods without emergency equipment or asset sales.