Recently, the Crypto Assets market has shown new dynamics. Ethereum (ETH) has attracted a large amount of institutional funds, with a net inflow of 12.2 million USD. This phenomenon is interpreted as a strategic increase the position behavior by institutions during the market adjustment. At the same time, a Large Investor transferred 12,000 ETH in a single day, drawing market follow.

Meanwhile, Unichain experienced a net outflow of $7.6 million. This was mainly due to the end of the $5 million mining reward program in April, which led to the withdrawal of arbitrage funds. This phenomenon has raised concerns about the liquidity crisis of small and medium-sized public chains.

The current market landscape is influenced by multiple factors:

1. Changes in the policy environment: The US GENIUS Act will take effect in July, requiring stablecoins to have 100% reserves and compliant issuance, which may benefit the development of the Ethereum ecosystem.

2. Institutional Investment Trends: ETH spot ETFs have shown net inflows for 15 consecutive weeks, with a record of 11.2 billion USD in July. The recent inflow of 12.2 million USD is seen as a low position increase during the correction period.

3. Regulatory Pressure: Due to the abnormal flow of USDT, the TRON chain has attracted regulatory attention, prompting funds to shift towards ecosystems like ETH that are considered more compliant.

4. Market Layering Effect: ETH has shown strong resilience against declines, with institutions increasing their positions to support the $3800 mark. At the same time, funds are shifting from mining arbitrage to ETH mainnet staking and compliant stablecoins. Second-tier public chains are facing pressure, especially if Unichain continues to bleed, which may impact Layer 2 tokens like Arbitrum.

Looking ahead, the technical upgrades of ETH may bring new opportunities. If the Cancun upgrade in August-September is successfully implemented, it will reduce Layer 2 costs, which may benefit the Arbitrum and Optimism ecosystems.

However, it is important to note that the inflow of $12.2 million does not signify the restart of a bull market, but rather a tactical increase in the position by institutions. The outflow of $7.6 million from Unichain reflects a normal phenomenon after the end of mining incentives, but also exposes the liquidity challenges faced by small and medium-sized public chains.

In the current market environment, investors should remain vigilant, follow opportunities for technological upgrades within the regulatory framework, while also being cautious of the potential risks associated with small public chains. The Crypto Assets market presents both opportunities and risks, making it crucial to accurately grasp the timing and trends.