Grayscale files to convert multi-crypto fund into ETF

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Ethereum DApp volumes drop 33% in a week — Is more ETH price weakness ahead?

August 19, 2024 Coin Telegraph

BASE

Ethereum’s dominance in decentralized application deposits compensates for the reduced onchain volumes, but what about ETH price?

Ether (ETH) has been trading within a narrow $230 range since Aug. 9, maintaining a solid support level at $2,550. However, this represents a 20% decline from three weeks ago, when ETH closed July above $3,300. This decline follows a broader contraction in cryptocurrency prices, but Ether is encountering specific challenges of its own. The Ethereum network’s decentralized applications (DApps) have seen a significant drop in activity over the past seven days.

Part of Ether’s failure to sustain a bullish momentum can be attributed to the lackluster performance of spot Ether exchange-traded funds (ETFs). The recently launched ETFs have experienced a combined $30 million in net outflows since Aug. 9, according to data from Farside Investors. Despite these outflows, traders remained optimistic that inflows from major players like BlackRock and Fidelity would counterbalance the outflows from Grayscale’s ETHE, although this remains to be seen.

The Ethereum network continues to lead in terms of total value locked (TVL) and transaction volumes, even though it charges significantly higher fees compared to its competitors. This fee difference presents a challenge, as the user experience on Ethereum does not favor second-layer solutions, thereby creating opportunities for niche markets to gain traction on alternative networks such as Solana (SOL), BNB Chain (BNB), and TON. Indeed, according to DappRadar data, none of the top 12 DApps by user count are based on Ethereum.

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August 3, 2024 Bitcoin.com

Ethereum futures open interest hits 19-month high, yet ETH price weakness intensifies

August 3, 2024 Coin Telegraph

Arbitrage

Ethereum derivatives metrics show increased activity, indicating higher interest but not necessarily a bullish trend.

Ether (ETH) experienced a 10% correction between July 31 and Aug. 2, retesting the $3,000 support for the first time since July 8. This movement significantly outpaced the broader cryptocurrency market, which declined by 6.8% during the same period. Despite this, Ether futures open interest rose to its highest level in seven months, leading traders to speculate whether a rally to $3,600 is the next probable move.

The increased activity in ETH futures contracts typically indicates institutional investors' interest, as open interest measures the demand for leverage. However, buyers (longs) and sellers (shorts) are always matched, so an increase in open interest does not inherently indicate a positive outlook.

Part of Ether’s decline can be attributed to the lack of net inflows into recently launched Ether exchange-traded funds (ETFs) in the United States. Although there were some inflows, particularly into BlackRock’s iShares Ethereum Trust and the Fidelity Ethereum Fund, these were offset by outflows from the Grayscale Ethereum Trust, which has existed since before the ETF conversion.