Ethereum futures data and network activity growth back ETH’s price strength

Key takeaways:

• Ethereum network fundamentals improve alongside its resilient ETH futures markets. 

• An increase in layer-2 transactions highlights ecosystem growth.

Ether ( ETH ) has repeatedly failed to break above $2,700 since May 13, but despite this short-term weakness, Ether’s price has outperformed the broader cryptocurrency market capitalization by 17% over the past 30 days, raising the likelihood of a correction as macroeconomic uncertainty continues.

Investors are concerned that declining interest in decentralized applications (DApps) across all blockchains is a key reason why ETH still trades 48% below its October 2021 all-time high of $4,870. The industry’s total value locked (TVL), currently at $122 billion, is still 43% below its December 2021 peak.

Ethereum continues to dominate the TVL landscape with a 54.2% market share, and leading Ethereum layer-2 solutions have secured an additional 6.3% share of the TVL, reducing the competitive pressure from alternative blockchains. Altogether, deposits within the Ethereum ecosystem are more than four times greater than the combined totals of its two largest rivals, Solana and BNB Chain.

Critics argue that Ethereum was unprepared for the memecoin frenzy that defined the first quarter of 2025, especially as onchain activity on Solana spiked after the Official Trump (TRUMP) token launched in January. Still, while a few Solana DApps experienced strong momentum, the overall benefit for SOL holders remains uncertain.

For example, the top four Solana DApps — Meteora, Pump, Jito, and Axiom — generated $356.3 million in fees over the past 30 days. However, the Solana network itself collected only $48.5 million during the same period. This dynamic creates downward pressure on SOL’s price, as several of these projects regularly sell off treasury reserves.

For comparison, the top four DApps on Ethereum generated $169 million in fees over the same 30-day period, while users paid $38.3 million in network processing fees. This suggests that Ethereum’s dependence on layer-2 scaling solutions may be more favorable for ETH investors compared to Solana’s uneven revenue distribution.

Ether investors are frustrated, but layer-2 growth stands out

To gauge whether traders turned bearish after Ether’s 9% price drop between May 29 and May 30, it’s useful to examine ETH futures markets .

Despite $159 million in liquidated bullish leveraged positions during the two-day decline, the ETH futures annualized premium remained near 6%. In neutral markets, a premium between 5% and 10% is considered standard, as sellers require compensation for delayed settlement.

Some Ether investors are also frustrated by Ethereum’s lack of distinct competitive advantages. The most recent network upgrade did not shift sentiment significantly. However, Ethereum’s layer-2 ecosystem is now processing over 15 times more transactions than the base layer.

Ultimately, investor sentiment remains anchored to broader macroeconomic trends. The likelihood of ETH breaking below the $2,400 level is closely tied to global recession risks and trade tensions. Ethereum’s TVL and transaction scalability help cushion the downside risk and reduce the chance that ETH will underperform the broader altcoin market.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.