Citi Research: Ether Faces Challenges, But TVL Growth Suggests Optimism Amid Regulatory Shifts
Ether (ETH) has seen a significant price drop of over 20% this year, but despite this underperformance, the underlying fundamentals for the blockchain are showing positive trends, according to a new report from Citi released on Monday.
Citi’s analysts, led by Alex Saunders, highlighted that while ether’s price remains under pressure, Ethereum’s Total Value Locked (TVL) has seen a notable increase, signaling strong investor interest and confidence in the network. Additionally, the report noted that ether exchange-traded funds (ETFs) continue to attract capital, with $3.2 billion in inflows since the ETF’s launch in July, further reflecting investor confidence in the long-term prospects of the cryptocurrency.
User growth on Ethereum’s layer-2 solutions and other competitive blockchains like Solana has raised concerns about Ethereum’s market position, but Citi remains optimistic about its future. The report emphasized that the growing interest in Ethereum’s decentralized finance (DeFi) ecosystem is a positive indicator.
Citi also pointed to President Trump’s World Liberty Financial, which holds over $200 million in ether, as a sign of growing institutional interest in the asset. The bank suggested that this could motivate stronger U.S. support for the cryptocurrency sector.
Although Ethereum’s price struggles have coincided with Bitcoin (BTC) reclaiming a dominant position in the market, Citi highlighted that the relative performance of ETH and altcoins could serve as an important barometer for investor sentiment on regulatory clarity in the U.S. crypto market.
Overall, Citi’s research reflects a mixed outlook for Ethereum—while its price faces challenges, the blockchain’s fundamentals remain strong, with growth in TVL, steady ETF inflows, and growing support from institutional players.
