Ghuihzjinhzether (ETH) has had a lower performance of the year to date, decreasing more than 20%, but the foundations are improving and the total locked value (TVL) in the Ethereum block chain has increased dramatically, said Wall Street Bank Citi (c) In a research report on Monday.
“While user activity has been volatile in recent weeks, the fundamental backdrop is not so murky,” analysts led by Alex Saunders wrote.
Citi pointed out that TVL in the Ethereum network has increased sharply, while Ether’s -listed funds (ETF) are still seeing tickets, and the search interest is increasing.
After the US elections in November, ETF’s flows of Ether became positive, the report said, with total $ 3.2 billion tickets since its July launch.
A stronger growth of users in layer 2 and Blockchain’s rival, like Solana, has asked questions about Ethereum’s competitive advantage, according to the report.
World Liberty Financial of President Trump has more than $ 200 million Ether, and this could be seen as “additional motivation to ensure that the United States strengthens its support for the cryptographic industry,” said the bank.
“The relative performance of ETH and Altcoin can serve as an optimistic meter is the industry regarding the monitoring of regulatory clarity in the US.”
Citi pointed out that the weakness in the ether has coincided with an increase in Bitcoin (BTC) domain, which is now at maximum of several years greater than 60%.
Read more: Ethereum faces the ‘intense’ competition of other networks: JPMorgan
