Ethereum’s native cryptocurrency, Ether (ETH), has seen a modest 7.5% gain since dipping to $2,396 on August 27. However, it remains down 22% over the past 30 days, signaling that investors are still hesitant about their positions. Despite Ethereum’s increased network activity, ETH has yet to approach the $3,800 levels observed in early June.
The lack of enthusiasm for spot Ether ETFs, which had been anticipated to spark significant demand, is one factor contributing to Ether’s weakness. The broader altcoin market has also underperformed, with Ethereum falling behind its peers in terms of price action.
Decentralized exchanges 7-day volumes, USD. Source: DefiLlama
Rising Ethereum DApp Volumes and Total Value Locked (TVL)
Despite Ether’s sluggish price performance, Ethereum’s dominance in decentralized applications remains unchallenged. Ethereum’s total value locked (TVL) has grown, with 18.9 million ETH now deposited in Ethereum DApps, a 4% increase from two weeks earlier. Symbiotic, a new staking project, saw its TVL grow by 83%, further boosting Ethereum’s figures.
DApp volumes on the Ethereum network have also increased by 36% between July 22 and July 29. Decentralized exchange Uniswap and automated market maker Balancer led this surge, with their volumes rising by 35% and 46%, respectively.
Top Ethereum DApps ranked by 7-day volumes, USD. Source: DappRadar
Concerns Over Declining User Activity
Despite the growth in DApp volumes and TVL, Ethereum’s network faces challenges. Active addresses interacting with DApps have remained flat, and the total number of transactions has declined by 8% since August 22. Competitors such as BNB Chain and Solana have seen growth in both active users and transaction volumes, outpacing Ethereum during this period.
Ether’s price is also hampered by sluggish institutional interest, with spot Ether ETF funds experiencing net outflows of $107 million over the past two weeks. Without clear signs of excitement or stronger inflows, Ethereum’s price may struggle to recover in the short term.
