Ethereum (ETH) maintains its position near $4,300 despite a recent 15% drop from its all-time high. This decline is attributed to worsening macroeconomic conditions.
Network Activity and Institutional Adoption
The increase in Ethereum's network activity indicates its strength. Weekly fees rose by 30%, allowing Ethereum to surpass Tron as the highest revenue-generating network. Ethereum's total fees reached $16.3 million, doubling Solana's. In August, Ethereum DApps generated $466 million, marking a 36% increase from the previous month.
Caution Prevails in Derivative Markets
Despite positive trends in network activity, derivative markets show caution from traders. The futures premium hovered at 5%, indicating a neutral to bearish market. However, total open interest rose by 26%, reaching $58.5 billion.
Institutional Adoption as a Price Driver
Institutional adoption of Ethereum continues to grow. In the last month companies added 2 million ETH to their reserves. Firms like Bitmine Immersion Tech and SharpLink Gaming are already investing in Ethereum-based DApps, highlighting ETH’s crucial role within the decentralized applications ecosystem.
Despite cautious signals from derivative markets, Ethereum's increased network activity indicates that it is well positioned to regain its upward momentum.
