Is Ethereum’s ETH Dead? Surging Metrics Say Otherwise

Over the past few days, there has been a lot of talk on social media, particularly Crypto Twitter, about Ethereum’s ether (ETH) being dead. But despite this chatter, the market is actually showing a lot of optimism for ETH prices. Traders are showing confidence in the cryptocurrency by investing in derivatives and utilizing Ethereum’s services more than ever before.

Cumulative open interest in both perpetual and standard futures contracts has hit a record high of 6.32 million ETH, valued at over $27 billion. This represents a 17% increase so far this month, indicating a positive trend in the market. The price of ether has also seen a significant 35% increase this month, reaching $3,400, matching the performance of the leading cryptocurrency, Bitcoin.

The premium for three-month ETH futures compared to spot prices has expanded to 16% on offshore exchanges like Binance, OKX, and Deribit. Similarly, the premium on the Chicago Mercantile Exchange has risen to 14%, sparking interest in cash and carry trades that capitalize on the price differences between markets. This has led to more investments in U.S.-listed spot ETH ETFs.

Activity in the ether options market on Deribit has also seen a surge, with over 2 million contracts active, marking the highest level since late June. The total open interest for these contracts is currently at $7.33 billion. The increasing value of assets locked on Ethereum-based applications has reached $65 billion, a figure last seen in May 2022, with the majority held in three key applications.

Despite the recent surge, it’s worth noting that Ethereum’s activity levels are still not at the peak seen earlier this year. The Solana network remains a strong contender in DeFi activity due to its popularity among retail users and low fees. Additionally, stablecoin data shows that Ethereum hosts more USDT than Tron, for the first time since June 2022, indicating a growing demand for ETH.

The recent victory of president-elect Donald Trump has reignited hopes for a decentralized finance (DeFi) bull market among some investors. His campaign promises to reduce regulatory burdens on crypto could make it easier for DeFi platforms to operate in the U.S., leading to increased interest in ETH and other major DeFi tokens since early November.