Share this article
Ether Has Underperformed, but Total Value Locked on Ethereum Is Rising: Citi
Ether has dropped over 20% this year, but fundamentals are improving, the report said.
Updated Feb 11, 2025, 2:40 p.m. Published Feb 11, 2025, 8:36 a.m.
Make us preferred on Google
What to know:
- Ether has dropped over 20% this year, but fundamentals are improving, the report said.
- Citi noted that total value locked on the Ethereum network has risen sharply.
- Bitcoin dominance is now at multi-year highs, the bank said.
ghuihzjinhzEther has underperformed year-to-date, declining over 20%, but fundamentals are improving and total value locked (TVL) on the Ethereum blockchain has risen dramatically, Wall Street bank Citi (C) said in a research report Monday.
"While user activity has been volatile in recent weeks, the fundamental backdrop is not all that murky," analysts led by Alex Saunders wrote.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Citi noted that TVL on the Ethereum network has risen sharply, while ether exchange-traded funds (ETFs) are still seeing inflows, and search interest is rising.
Following the U.S. election in November, ether ETF flows turned positive, the report noted, with total inflows of $3.2 billion since their July launch.
Stronger user growth on layer-2s and rival blockchain's such as Solana has raised questions about Ethereum's competitive advantage, the report said.
President Trump's World Liberty Financial holds more than $200 million of ether, and this could be viewed as "additional motivation for ensuring the U.S. strengthens its support for the crypto industry," the bank said.
"Relative ETH and altcoin performance may serve as a gauge for how optimistic the industry is regarding follow-through on regulatory clarity in the U.S.," the report added.
Citi noted that weakness in ether has coincided with an increase in bitcoin dominance, which is now at multi-year highs above 60%.
Read more: Ethereum Faces 'Intense' Competition From Other Networks: JPMorgan
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Gold tops $5,000 as bitcoin stalls near $87,000 in widening macro-crypto split: Asia Morning Briefing
Bitcoin’s onchain data points to supply overhang and weak participation, while gold’s breakout is priced by markets as a durable macro regime shift.
What to know:
- Gold’s surge above $5,000 an ounce is increasingly seen as a durable regime shift, with investors treating the metal as a persistent hedge against geopolitical risk, central bank demand and a weaker dollar.
- Bitcoin is stuck near $87,000 in a low-conviction market, as on-chain data show older holders selling into rallies, newer buyers absorbing losses and a heavy supply overhang capping moves toward $100,000.
- Derivatives and prediction markets point to continued consolidation in bitcoin and sustained strength in gold, with thin futures volumes, subdued leverage and weak demand for higher-beta crypto assets like ether reinforcing the cautious tone.
Top Stories
