Ether futures open interest has reached a record high of $60.8 billion, coinciding with Ether's price rise above $4,500. Despite this surge, the demand for leveraged bullish positions appears weak, as indicated by derivatives data. Major companies are increasingly favoring their own layer-1 chains, raising concerns about Ethereum's dominance in decentralized finance. Meanwhile, the total value locked (TVL) in the Ethereum network has declined by 7% over the past month, contributing to a broader narrative of uncertainty regarding Ethereum's competitive standing. Additionally, while institutional demand for ETH seems robust through spot ETF inflows, on-chain metrics reveal less optimism, with Ethereum's weekly fees trailing behind competitors like Solana and Tron. As the current rally might be primarily a result of price appreciation rather than increased speculation, analysts advise caution regarding the sustainability of this trend.

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