Ethereum Futures Data and Network Activity Growth Back ETH’s Price Strength

Ethereum’s fundamentals are showing signs of improvement alongside the strength in ETH futures markets. Despite failing to break the $2,700 mark recently, Ether has outperformed the broader market by 17% in 30 days, although it remains 48% below its all-time high. Layer-2 ecosystems are gaining traction, which may provide some cushion for investors against macroeconomic uncertainties.

Ethereum’s fundamentals show signs of improvement, matching the strength observed in its ETH futures markets. Recently, layer-2 transactions have surged, further signalling growth within the ecosystem. Notably, Ether has struggled to surpass the $2,700 mark since May 13. Despite this limitation, it’s worth mentioning that Ether’s performance has outpaced the overall cryptocurrency market by 17% in the last month, suggesting potential for correction amidst ongoing macroeconomic uncertainty.

Investors express worry regarding diminishing interest in decentralized applications (DApps) across various blockchains. This trend is viewed as a primary factor contributing to ETH trading at nearly 48% below its October 2021 peak of $4,870. Currently, the industry’s total value locked (TVL) stands at $122 billion, which is still a significant 43% under its high from December 2021.

Ethereum continues to lead the TVL rankings with a commanding 54.2% market share. Furthermore, prominent Ethereum layer-2 solutions have managed to capture an additional 6.3% of the TVL, easing pressures from competing blockchains. Cumulatively, deposits in the Ethereum ecosystem vastly exceed those of its largest competitors, Solana and BNB Chain, by more than quadruple.

However, critics point out Ethereum’s apparent unpreparedness during the memecoin boom that took off in the first quarter of 2025. Notably, there was a surge in on-chain activities on Solana, particularly after the Official Trump (TRUMP) token was launched in January. While some Solana DApps gained popularity, the weight of overall benefits for SOL holders remains questionable.

For instance, the top four DApps on Solana—the Meteora, Pump, Jito, and Axiom—managed to accrue $356.3 million in fees over the last month. Meanwhile, the entire Solana network collected just $48.5 million during that time. Such dynamics could exert downward pressure on SOL’s pricing, especially as many projects continue to liquidate their treasury reserves.

Meanwhile, in comparison, the four leading DApps on Ethereum garnered $169 million in fees in the same timeframe, with users covering $38.3 million in processing fees. This data suggests that Ethereum’s reliance on layer-2 scaling solutions may offer a more advantageous scenario for ETH investors versus Solana’s variable revenue distribution.

Though some Ether investors feel disheartened, the expansion of layer-2 solutions remains a positive aspect. Reviewing the ETH futures market can provide clarity into how traders reacted following Ether’s 9% drop between May 29 and May 30. Despite $159 million in bullish positions being liquidated over those two days, the annualized ETH futures premium lingered near 6%. Typically, in stable markets, a premium between 5% and 10% is expected, indicating the costs sellers take on for delayed settlement.

Investor frustrations partly stem from Ethereum’s seeming lack of distinct competitive advantages. The latest network upgrade didn’t notably shift market sentiments. However, what’s noteworthy is that Ethereum’s layer-2 solutions are now handling over 15 times more transactions than the main network.

In conclusion, investor sentiment is largely influenced by broader economic factors. The risk of ETH falling below $2,400 aligns closely with international recession fears and trade tensions. Yet, Ethereum’s robust TVL and improved transaction scalability may continue mitigating downside risks, thus enhancing the odds that ETH won’t underperform against other altcoins.