Ethereum looks unlikely to break $3,000 in the near term as network activity stays sluggish
Ethereum's total value locked (TVL) decreased to 25.1 million ETH on June 5, a 17% drop from the previous month, while Solana's TVL rose to 65.8 million SOL. Key contributors to Ethereum's decline include Sky and Curve Finance, which saw significant reductions in their locked assets. Despite a 150% increase in average network fees month-over-month, indicating a stronger burn mechanism, Ethereum's competitive edge is diminishing as decentralized exchange (DEX) activity shifts towards Solana and BNB Chain. Ethereum ranks third in DEX volume, with Solana surpassing it even after adjusting for fee distortions. Ether futures indicate a lack of bullish sentiment, with the premium dropping to 5%. However, institutional interest remains strong, with US-based spot Ether ETFs attracting $700 million in net inflows from May 22 to June 4, reinforcing support around $2,500. Overall, while demand persists, breaking the $3,000 mark appears unlikely in the near term.
