Ethereum has rallied 32% to reach $4,518, though surprisingly weak demand for leveraged bullish positions in derivatives markets raises sustainability questions as layer-1 competitors gain corporate traction.
Despite the price surge, ETH futures open interest achieved a historic $60.8 billion – a significant increase from $47 billion just one week prior. Concurrently, the ETH perpetual futures annualized premium remains neutral at 11%, reflecting tempered optimism among traders seeking leveraged exposure.
Additional concerns emerge as Ethereum’s total value locked (TVL) declined by 7% over the past month, signaling reduced network activity. This trend coincides with accelerating adoption of alternative layer-1 chains by institutional entities, intensifying ecosystem competition.