Ethereum Futures Open Interest Reaches Record High Amid Price Surge

NEW YORK, NY — Ether (ETH) futures open interest has soared to a record $60.8 billion as the cryptocurrency’s price surged above $4,518 on Tuesday. This rise comes amid a modest increase of 0.1% in U.S. consumer inflation, reflecting a growing risk appetite among traders.

Despite this rally, derivatives data suggests that the momentum may be overstated. Much of the increase in open interest has been driven by the rise in ETH’s price, which has surged by 51% over the past 30 days. However, open interest in ETH terms remains 11% below the peak of 15.5 million ETH recorded on July 27.

The annualized premium for ETH perpetual futures currently stands at 11%, a neutral figure that indicates there isn’t excessive demand for leveraged long positions. In contrast, earlier readings had shown premiums over 13% that indicated a stronger bullish sentiment. Monthly contracts, typically preferred by institutional players, have seen their premium drop to 8%, down from 11% earlier in the week.

On-chain metrics reveal a less favorable picture for Ethereum. The total value locked (TVL) on its network fell by 7% in the last month, declining to 23.3 million ETH from 25.4 million ETH. Additionally, base layer fees dropped by 27% to $7.5 million, lagging behind competitors like Solana and Tron.

Moreover, several major firms, including Stripe and JPMorgan, are exploring their own layer-1 blockchain solutions rather than adopting Ethereum’s layer-2 infrastructure. This trend illustrates a growing preference for proprietary approaches among enterprises, especially for products that require less decentralization.

While there is rising institutional demand reflected in spot ETF inflows, the on-chain activity does not show strong growth, suggesting caution among traders. Analysts are closely monitoring key price levels of $4,500 and $6,000, as potential liquidation risks loom.

The sustainability of Ether’s recent price ascent remains uncertain, and market participants are bracing for potential volatility as they evaluate both price action and underlying fundamentals.