Despite experiencing a decline of over 20% since the beginning of 2025, Ethereum (ETH) $1,950 shows promising signs of improvement in its fundamental indicators. According to a report by Wall Street bank Citi, there has been a significant increase in the Total Value Locked (TVL) in the Ethereum network, along with a positive cash flow into ether investment funds. This trend is considered a signal of reduced uncertainty in the cryptocurrency market.
Growth in TVL and Influx of Investment Funds
The Citi report highlights that despite fluctuations in user activity, Ethereum’s core indicators are generally improving. The report notes a remarkable increase in TVL on the network. Furthermore, there has been a substantial influx of capital into ether-focused investment funds following the U.S. elections, with ETFs launched in July attracting a total of $3.2 billion in investments to date.
Analyst Alex Saunders indicates that the Ethereum network is on a path to recovery. He notes that despite fluctuations in user engagement, the overall fundamental indicators have moved away from uncertainty. The growth of TVL in Ethereum is projected to enhance long-term investor confidence.
Competition and Market Dynamics
While the report presents positive signals regarding Ethereum’s growth, it also underscores the increasing competition. Layer-2 networks are increasing user numbers, and the performance of rival blockchains like Solana $136 poses a challenge to Ethereum’s competitive edge. This scenario may encourage investors to diversify their portfolios.
The report sheds light on how market dynamics impact Ethereum and other altcoins. Bitcoin $84,453’s market dominance has surged above 60%, reaching its highest level in years. This development is seen as a potential risk that could pressure Ethereum and the performance of other altcoins.
Moreover, increased regulatory clarity in the U.S. could create an optimistic environment for Ethereum and other cryptocurrencies. Another noteworthy point in Citi’s report is the $200 million ether portfolio held by World Liberty Financial, associated with former President Trump. The presence of such high-profile investors may boost confidence in Ethereum.
In conclusion, while the increase in TVL and the influx of investment funds present a favorable outlook for Ethereum, the growing competition and Bitcoin’s dominance must be monitored closely for investment decisions.