Despite a 56.5% surge in Ether's price over the last month, Ethereum derivatives metrics indicate trader caution. The annualized funding rate for Ether has decreased to 9%, suggesting diminished demand for bullish positions. This comes amid a significant 11% drop in the total value locked (TVL) within the Ethereum ecosystem, which has reached a five-month low of 23.4 million ETH. In comparison, rival networks Solana and BNB Chain have maintained or increased their activity levels. Ethereum's decentralized exchange (DEX) volume has also waned, dropping to $81.4 billion, while Solana and BNB Chain have seen higher metrics. The decline in network activity and TVL could hinder Ethereum's transaction fee viability, crucial for maintaining validator operations. Additionally, ETH futures are trading at a 6% annualized premium, reflecting a neutral sentiment after a pullback from bullish leverage. Some analysts speculate that corporate buying could drive prices towards $5,000, yet the skepticism surrounding a sustainable rally to $4,000 persists, particularly with rising competition from Solana and BNB Chain.

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