The interest in Ether (ETH) staking has increased even as the cryptocurrency's price struggles, facing a notable decline. Recent reports indicate that the total value locked in the Ethereum network decreased by 33% over two months, settling at $37.5 billion. Additionally, revenues from decentralized applications (DApps) fell by 43% in May compared to the previous half-year, highlighting a downturn in network activity.
As of June 5, the annualized funding rate for ETH perpetual futures turned negative, indicating that traders holding short positions are paying premiums to maintain them. This shift reflects a lack of confidence among bullish traders, despite a significant 30% price drop in the last five weeks. Furthermore, the aggregate open interest in ETH futures declined by 30% within a month, reaching its lowest level in over a year.
In contrast, corporate accumulation and the commitment of stakers may offer some support against further price declines. Despite weak institutional demand, the resilience of stakers could prevent ETH from plummeting to around $1,500. Notably, US-listed Ether exchange-traded funds experienced $323 million in net outflows over a two-week period, indicating a retreat in institutional interest.