The main dishes to remember:
The decrease in Ethereum TVL contrasts the increase costs
Ether (ETH) had trouble recovering the $ 2,700 mark despite a gain of 8% between June 2 and 4. Although the price has gained 48% between May 5 and June 5, an increase in the increase seems limited due to low network activity and growing competition.
The total deposits on the Ethereum network, measured by a total locked value (TVL), fell to 25.1 million ETH on June 5, marking a decrease of 17% compared to the previous month. Ethereum still leads in total deposits, but Solana TVL increased by 2% during the same 30 -day period, reaching 65.8 million soil (soil). This suggests that the edge of Ethereum on the rivals is gradually eroding.
The main contributors to the drop in TVL of Ethereum include Sky (formerly Makerdao), which dropped by 48% to 2.1 million ETH, and curve financing, down 24% to 1.1 million ETH.
However, this neglects the fact that average network costs in Ethereum have increased by 150% per month. This increase in costs amplifies the protocol burning mechanism, reducing the inflationary pressure of the ETH.
Dex activity increases, but Solana Bat Ethereum in volume
An engine behind the higher costs is the overvoltage of the decentralized exchange activity (DEX). UNISWAP managed more than $ 2.6 billion in daily volume so far in June, compared to $ 1.65 billion in early May.
Although this trend supports Ether Prix, rival networks like BNB Chain and Solana have expanded their share of Dex activity. Currently, Ethereum ranks third in this segment.
The BNB chain has led in the growth of the volume ofx, although this advantage is less significant due to the extremely low costs of the network. The drop in costs facilitates the artificial swelling of activity, making comparisons with Solana and Ethereum somewhat misleading.
In relation: Ethereum recovers the Defi market as bots lead a volume of stablecoin of $ 480 billion
Even after adjustment for this distortion, however, the volume of Solana exceeded that of Ethereum. This change raises questions on the question of whether ETH still maintains a competitive advantage.
In particular, the most efficient decentralized applications such as Hyperliquid and Pump choose to launch their own blockchains instead of relying on Ethereum Layer-2 solutions or using alternatives such as Solana.
ETH futures show an optimistic lack of conviction
The term markets for Ether offer an overview of the feeling of professional traders. Under balanced conditions, monthly ETH contracts are generally negotiated at an annualized bonus of 5% to 10% to reflect the extended settlement period.
As of June 5, the Futures Ether bonus dropped to 5%, down from 6% a week earlier. This indicates a slight reduction in long leverages, although the premium remains in a neutral beach. Most importantly, the last time the term contracts on the ETH negotiated above a bonus of 10%was at the end of January, suggesting a persistent lack of bullish conviction.
On the positive side, institutional interest in ETH increased, strengthening support nearly $ 2,500.
Thus, concluding that the institutional demand for ether declined would be inaccurate. Between May 22 and June 4, the American funds on negotiated stocks (ETF) based in the United States attracted $ 700 million in net entries. In particular, there was not a single day of net outings during this three -week period, strengthening the strength of the support level of $ 2,500.
Thus, while ETH’s request remains, in particular institutions, other measures suggest that Bulls will probably not be able to break $ 3,000 in the short term.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
