Main takeout:
Ether Leeum’s decrease in tvL is in contrast to the increase in commissions.
ETH struggled to recover $ 2,700 despite 8%of profits between June 2 and June 4. The price rose 48% between May 5 and June 5, but further rises are limited due to the increase in network activities and competition in some network activities.
The total deposit of Etherum Network, measured by the total value lock (TVL), fell to 25.1 million ET on June 5, down 17% from last month. Ether Lee is still leading the total deposit, but Solana’s tvL has risen 2% in the same 30 days, reaching 65.8 million SOL (SOL). This suggests that the edge of Ether Leeum for rivals is gradually eroded.
The main contributions to Ether Lee’s tvL reduction included 2.1 million ETH, curve finance, 24% to 1.1 million ETH, down 48%, including SKY (former MakerDao).
However, this overlooks the fact that Ether Leeum’s average network fee has risen 150% in months. This increase in commissions amplifies the image mechanism of the protocol to reduce the inflation pressure of ETH.
Dex activity rises, but Solana has won Ether Lee with volume.
One of the drivers behind the higher fees is the surge in Distributed Exchange (DEX) activities. Uniswap handled more than $ 2.6 billion a day by June, compared to $ 1.66 billion in early May.
This trend supports Ether’s price, but rival networks such as BNB chains and solana have expanded their share of DEX activities. Currently, Ether Lee is ranked third in this category.
The BNB chain led to the growth of Dex volume, but this advantage is less important due to the very low fees on the network. It is easier to expand the activity artificially because of the low cost, so comparison with Solana and Ethereum is somewhat misunderstood.
relevant: Ether Lee Rium regains the Defi market as the bot drives the $ 480B Stablecoin volume.
But even after adjusting this distortion, Solana’s DEX volume surpassed Etherrium. This change questions whether ETH is still maintaining a competitive advantage.
In particular, the highest performance distributed applications such as hyperclicades and pumps are selected to launch their own blockchains instead of building Etherrium Layer -2 solutions or using alternatives such as Solana.
ETH futures show that there is a lack of strong beliefs.
The futures market in ether provides insight into the feelings of professional traders. Under balanced conditions, monthly ETH contracts are generally traded at 5% to 10% annual premiums to reflect the extended payment period.
As of June 5, Ether Future Premium decreased from 6%to 5%a week ago. Premiums are maintained within the neutral range, but you can see a slight reduction in the long position. More importantly, the last time of ETH Futures more than 10% premium was at the end of January, suggesting that optimistic convictions were continuously lacking.
In a positive aspect, institutional interest in ETH has increased, strengthening support at $ 2,500.
Thus, the conclusion that institutional demand for ethers is weak is inaccurate. Between May 22 and June 4, the US -based Spot ether exchange transaction fund (ETF) attracted $ 700 million in net inflow. In particular, there was no net leak of the day for those three weeks and strengthened the strength of $ 2,500.
Thus, the demand for ETH remains especially from the institution, but according to other indicators, the bull is probably not able to break $ 3,000 in the short term.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.