Despite a 56.5% surge in Ether price over the past month, derivatives indicators reveal trader caution. The annualized funding rate for ETH dropped to 9%, signaling reduced demand for leveraged bullish positions. Ethereum's Total Value Locked (TVL) declined 11% in July, with major competitors like Solana and BNB Chain seeing more stable or rising network activity. Solana’s TVL fell only 4%, whereas BNB Chain grew 15%. Moreover, Ethereum lost its lead in decentralized exchange volume, processing $81.4 billion compared to Solana's $82.9 billion and BNB Chain's $189.2 billion. This stagnation raises concerns as transaction fees, essential for validator incentives and DApp development, suffer. The current annualized premium for ETH futures is at 6%, suggesting a neutral posture regarding bullish leverage demand. Despite notable corporate reserve buying, traders remain skeptical about pushing ETH towards $4,000 amidst competitive pressures and weak on-chain metrics. Until a change in sentiment occurs, optimism for Ethereum’s price rally appears limited.

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