Citi highlights that although Ether is underperforming, the Total Value Locked on Ethereum is increasing.

Citi: Ether’s Price Struggles Persist, But Fundamentals Show Positive Signs and TVL Rises

Ether (ETH) has faced a challenging start to the year, experiencing a decline of over 20%, but fundamental factors continue to improve, according to a report released by Citi on Monday.

Despite the downturn in its price, Citi analysts, led by Alex Saunders, noted that the Ethereum network’s overall fundamentals are stronger than they may initially appear. The report highlights a significant increase in Total Value Locked (TVL) on the Ethereum blockchain, indicating that the network is seeing continued interest and investment.

Additionally, the report points out that ether exchange-traded funds (ETFs) have seen inflows, with $3.2 billion coming in since their launch in July, signaling confidence from investors. The rise in search interest surrounding Ethereum further supports this optimism.

While Ethereum has faced competition from newer blockchain platforms, such as Solana, which have shown strong growth, Citi’s report argues that Ethereum’s position remains solid, despite these challenges. The bank also noted that the relative performance of Ethereum versus other assets can serve as an important indicator of the broader market’s view on the U.S. regulatory landscape.

Furthermore, the report noted that President Trump’s World Liberty Financial holds a significant amount of ether, more than $200 million, which Citi believes may encourage the U.S. government to strengthen its support for the crypto sector moving forward.

Despite Ethereum’s recent weakness, the report concludes by pointing to the continued dominance of Bitcoin, which has recently surpassed 60% market dominance, further underscoring its influence in the broader cryptocurrency market. The relative performance of ether and altcoins in the coming months could offer insight into the industry’s outlook on regulatory developments in the U.S.