Ether Declines Over 20% Year-to-Date, Total Value Locked Increases

Ether (ETH) has declined over 20% year-to-date, but fundamentals are improving, according to Citi's research report. Key points include:

Total value locked (TVL) on the Ethereum blockchain has increased significantly.
Ether exchange-traded funds (ETFs) have seen inflows of $3.2 billion since their July launch.
User activity remains volatile, yet the overall fundamental backdrop is positive.
Growing user interest on layer-2 solutions and competitors like Solana raises questions about Ethereum's market position.
World Liberty Financial holds over $200 million in ether, potentially influencing U.S. support for the crypto industry.
Weakness in ether aligns with a rise in bitcoin (BTC) dominance, now exceeding 60%.