Ether futures open interest reached a record high of $60.8 billion as the price of ETH surged past $4,500, driven by increased risk appetite among traders following a slight rise in US consumer inflation. However, this growth in open interest primarily reflects ETH's price increase rather than a robust demand for leveraged long positions. Key derivatives metrics indicate weak enthusiasm for bullish trades despite strong spot market gains. In fact, the annualized premium for ETH perpetual futures currently stands at 11%, signaling a neutral market, while the monthly futures' premium has dropped. Further complicating Ethereum's outlook are decreasing on-chain activities and growing competition from independent layer-1 solutions launched by major firms like Stripe and JPMorgan. While there is some institutional interest in ETH, demonstrated through ETF inflows, on-chain metrics reveal a decline in total value locked and weekly fees, further indicating challenges for Ethereum as a leading decentralized finance platform. Overall, the nominal rise in open interest seems more tied to ETH's price trajectory than to solidified bullish sentiment or increased adoption, raising questions about the sustainability of this rally.

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