Ether (ETH) has underpinned years to date falling over 20%, but basic elements are improved and the total value locked (tvl) at Ethereum Blockchain has increased dramatically, Wall Street Bank Citi (C) said in a research report Monday.
“While user activity has been unstable in recent weeks, the basic background is not so cloudy,” analysts wrote by Alex Saunders.
Citi noted that Tvl on the Ethereum network has risen sharply, while Ether Exchange-Traded Funds (ETFS) still see influx and search interest is rising.
After the US election in November, the Ether Etf flowers were positive, the report noted with a total influx of $ 3.2 billion since their July Start.
Stronger user growth on LAG-2s and rival blockchains such as Solana has raised questions about Ethereum’s competitive advantage, the report said.
President Trump’s World Liberty Financial has more than $ 200 million ether, and this can be seen as “further motivation to ensure the United States strengthens its support for the crypto industry,” the bank said.
“Relative ETH and ALTCOIN performance can serve as a meter for where the optimistic industry concerns follow-up of regulatory clarity in the United States,” the report added.
Citi noted that weakness in ether has coincided with an increase in Bitcoin (BTC) dominance, which is now at perennial heights over 60%.
Read more: Ethereum is facing ‘intense’ competition from other networks: JPMorgan
