As institutional investors return, ETH futures open interest increases
Main Receptors:
Institutional ETH stocks remain strong as Ether ETFs and Bitmine Immersion lead a healthy, spot-based recovery.
The lackluster DApp revenue and negative ETH funding rate suggest traders are skeptical of the rally.
The price of Ether (ETH) managed to stay above $2,300 on Wednesday. The recent rally, which has distanced itself from the lows of $1,940 seen on March 29, has led to ETH futures open interest reaching $25.4 billion, indicating an increase in interest from stakeholders. The move suggests a possible revival for ETH bulls after 10 weeks of failed attempts to reclaim the $2,400 level.
To determine whether the position reversal is bull-driven, one must evaluate the future ETH funding rate. ETH's perpetual futures funding rate has not been able to hold more than 5% since Friday, indicating a lack of confidence among the bulls.
The scale has dipped below 0% several times, indicating excessive demand for bearish gains. In neutral situations, the index should be 5% to 10% to cover the cost of capital.
Still, one can argue that such information reinforces that Ether's recent rally to $2,350 remains in place.
US-listed ether spot exchange-traded funds (ETFs) accumulated $248 million in net income over the past 10 days, confirming the theory of healthy spot-led ether bullish momentum. In parallel, digital asset treasury company Bitmine Immersion (BMNR US) announced that it has acquired $312 million worth of ETH. Bitmine now holds 4.87 million ETH, which is equivalent to $11.46 billion.
While institutional accumulation is generally a positive sign, Bitmine's ETH holdings are currently trending 13% below their buyout price, according to CoinGecko data. Similarly, U.S.-listed Ether ETF assets stood at $13.7 billion on Wednesday, down from $20.5 billion three months ago. Ether's failure to recapture $2,400 came as the S&P 500 index climbed to a new all-time high on Wednesday.
Weak Ethereum network activity, increased competition
Part of investors' appetite for discount cryptocurrencies can be attributed to declining activity in decentralized applications (DApps). Almost every corner of the cryptocurrency industry has been negatively affected by the 2026 bear market, including memecoin launch platforms, synthetic derivatives trading, collateralized loans, digital collectors, decentralized exchanges and cross-chain bridges.
A few positive highlights, including prediction markets and real-world assets, had no effect on the activity of the Ethereum network. With the emergence of competing blockchains focused on solving specific issues, such as Hyperliquid and Plasma, investors are beginning to question whether ETH is well-positioned to handle the eventual increase in demand for DApps.
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Ethereum's weekly DApps revenue dropped to $11 million per week, down from $24 million in early February. The main reason for investors to accumulate ETH is the high demand for on-chain processing and the expectation of a continuous burning method, which creates incentives to hold for a long time.
Despite increased demand for ETH futures, initial benchmarks failed to replicate. Among the possible reasons are losses in Ethereum strategic reserve companies and increased competition in the DApps industry.
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