Ethereum's Struggles Amidst Rising Total Value Locked: Insights from Citi

Key Insights

Ether has decreased by over 20% this year, although the fundamentals are showing positive signs, as per the report.
According to Citi, the total value locked (TVL) on the Ethereum network has seen a significant increase.
The dominance of Bitcoin has reached multi-year highs, indicated by the bank’s analysis.

Market Performance

Ether (ETH) has depreciated prominently throughout the year, but reports suggest that its underlying fundamentals are on an upward trend, alongside a notable increase in total value locked (TVL) within the Ethereum ecosystem, as highlighted by Wall Street banking giant Citi in a recent research note.

“While user activity has been volatile in recent weeks, the fundamental backdrop is not all that murky,” analysts led by Alex Saunders remarked.

Citi pointed out that how TVL on Ethereum is surging, even with the ongoing inflows into ether exchange-traded funds (ETFs) and a rise in public interest. In light of the upcoming U.S. elections, inflows into ether ETFs have surged positively, marking a total increase of $3.2 billion since their launch in July.

Through a growing user base on layer-2 solutions and competing platforms like Solana, doubts are being raised regarding Ethereum’s competitive edge.

In addition, President Trump’s World Liberty Financial reportedly holds over $200 million in Ether, considered a significant incentive for advocating the U.S. crypto industry.

With increased Bitcoin (BTC) dominance now surpassing 60%, Citi notes that this shift in market dynamics is aligning with the declining performance of Ether.