Despite widespread discussions on platforms like Crypto Twitter suggesting that Ethereum’s ether (ETH) may be losing momentum, the market is signaling strong support for its price growth. Traders are betting on higher ETH prices, driven by an uptick in derivatives trading and the growing use of Ethereum’s blob technology.
As of recent data from CoinGlass, cumulative open interest in Ethereum futures contracts has soared to an all-time high of 6.32 million ETH, valued at over $27 billion. This marks a 17% increase in open interest month-to-date. This surge, combined with rising prices, is seen as confirmation of a market uptrend. Ethereum’s price has surged 35% this month, reaching $3,400, which mirrors Bitcoin’s recent performance.
Further supporting the bullish outlook, Velo’s data shows a significant rise in the premium between three-month ETH futures and spot prices, with offshore exchanges like Binance, OKX, and Deribit now seeing an annualized premium of 16%. Meanwhile, the front-month premium on the Chicago Mercantile Exchange (CME) has risen to 14%. This widening premium could encourage more investors to engage in cash-and-carry trades, boosting inflows into U.S.-listed spot ETH ETFs, a strategy that involves holding a long position in spot ETFs while shorting futures contracts.
The ether options market is also experiencing growing interest, with over 2 million open contracts on Deribit, valued at a notional $7.33 billion—its highest since June. The surge in options activity indicates rising investor confidence in Ethereum’s future prospects.
Ethereum’s price increase has translated into a significant rise in the total value locked (TVL) across Ethereum-based decentralized applications (dApps), now standing at $65 billion—its highest since May 2022. A significant portion of this TVL is concentrated in key platforms such as Lido, with over $32 billion in staked ether, Aave holding $26 billion in assets, and EigenLayer with $14 billion.
On-chain activity is also on the rise, with Ethereum seeing higher transaction volumes, new wallet creations, and increased fees. While these metrics are still below the peaks observed in March when Ethereum ETFs were a key topic, the recent uptick in activity points to growing adoption and market interest.
Ethereum has also reclaimed its leadership in the stablecoin market, with $60.3 billion in USDT now hosted on the Ethereum network, surpassing Tron’s $57.94 billion for the first time since June 2022. This growth highlights Ethereum’s continued dominance in the stablecoin ecosystem.
Political developments have also contributed to the optimism surrounding Ethereum. With the election of Donald Trump, there is renewed hope for a more crypto-friendly regulatory environment in the U.S. This shift in sentiment has fueled demand for Ethereum, particularly in the decentralized finance (DeFi) sector, leading to the increased value of ETH and other major DeFi tokens since early November.
In conclusion, despite concerns expressed by some, the data surrounding Ethereum’s performance points to continued strength. With growing activity in derivatives, options markets, and DeFi applications, Ethereum is positioning itself for sustained growth, signaling a promising future for the network and its native token.
