Ether (ETH) has dropped over 20% this year, yet its fundamentals are reportedly improving, according to a report by Citi. The total value locked (TVL) on the Ethereum blockchain has seen a significant rise, alongside increasing inflows into ether exchange-traded funds (ETFs) since their launch in July, amounting to $3.2 billion post the U.S. election in November. Although user activity has been volatile, the fundamental outlook remains positive. The report highlights a competitive landscape as stronger user growth is noted on layer-2 solutions and rival blockchains like Solana. Additionally, the report mentioned that Bitcoin dominance has surged above 60%, indicating changes in market dynamics. Citi suggested that the relative performance of ETH against altcoins could serve as a gauge for industry optimism regarding future regulatory clarity in the U.S., especially considering high-profile holders like former President Trump, who reportedly owns over $200 million in ether.

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