While criticism about the future of Ethereum is increasing on social media, market data shows that interest in ETH derivatives and price increases are starting to reach historical records.
While criticism of Ethereum is mounting, with many users reporting that price action is slow and stagnant, on-chain data suggests that usage of the Ethereum network is starting to increase, similar to past bull markets.
According to crypto data platform CoinGlass, total open interest in Ethereum’s perpetual and standard futures contracts has reached 6.32 million ETH, equivalent to around $27 billion and up 17% in November. Analysts are calling this increase in open interest, combined with a price rally, an indication of an “uptrend.”
According to data provided by Velo, the difference between three-month Ethereum futures and spot prices, or the “premium,” has increased to 16% annually on exchanges such as Binance, OKX, and Deribit, while the Chicago Mercantile Exchange (CME) has increased its short-term futures premium to 14%.
Such high premiums could encourage cash and carry trading strategies to profit from the price difference between the two markets, which could then allow more money to flow into U.S. spot ETH exchange-traded funds (ETFs).
Assets Locked in Ethereum-Based Applications Are Increasing
The total value of assets locked in Ethereum-based applications rose to $65 billion as of Wednesday, a level last seen in May 2022.
But much of that value is concentrated in specific protocols. For example, the Lido protocol has $32 billion worth of ETH locked up, while the Aave protocol holds $26 billion worth of diverse assets, and EigenLayer manages $14 billion worth of re-stakes.
Ethereum’s on-chain activity is seeing increases in wallet count, revenue, and transaction volumes, but these metrics have yet to reach the yearly highs seen in March.