Ethereum Struggles to Hit $2,700; Solana Gains Ground

- Ethereum struggles at $2,700 despite 48% rise. - Solana gains as Ethereum's TVL decreases. Ether (ETH) faced significant challenges, even though its value notably increased by 48% between May 5 and June 5, 2025. As of June 4, 2025, ETH struggled to break past the $2,700 mark, while the network encountered stiff competition and limited activity. On June 5, 2025, Cointelegraph reported that Ethereum was experiencing slow network activity. This sluggishness persisted despite increased institutional investments and rising transaction fees, while competitors like Solana gained momentum. On June 5, Ethereum’s Total Value Locked (TVL) dropped to 25.1 million ETH, marking a 17% decrease from the previous month, with platforms such as Sky (formerly MakerDAO) and Curve Finance contributing to this decline. In contrast, Solana's TVL increased by 2% in the same 30-day period, reaching 65.8 million SOL. This growth underscores the shifting dynamics within the cryptocurrency landscape. Although Ethereum still leads in total deposits, smaller yet notable gains by competitors like Solana suggest its lead is shrinking. Higher activity on decentralized exchanges (DEX), notably Uniswap, drove a 150% month-over-month increase in transaction fees on the Ethereum network. Uniswap’s daily transaction volume surged from $1.65 billion in early May to over $2.6 billion in June. However, competing networks such as BNB Chain and Solana increased their share of the DEX market. Despite Uniswap’s rising volume, Ethereum's comparative competitive edge in DEX activity declined, as Solana’s DEX volume now surpasses Ethereum's. Sentiment in Ether futures markets also suggests caution. On June 5, the premium for monthly ETH contracts dropped to 5%, down from 6% a week earlier, indicating a slight decrease in leveraged long positions. Furthermore, ETH futures have not traded above a 10% premium since late January 2025, which demonstrates a lingering lack of strong bullish sentiment among professional traders. On the positive side, institutional interest in ETH bolstered its market presence. Between May 22 and June 4, US-based spot Ether exchange-traded funds (ETFs) saw $700 million in net inflows. During this period, these funds experienced no days of net outflows, and this inflow period provided substantial support around the $2,500 level. Therefore, while institutional interest and rising transaction fees demonstrate ongoing demand for ETH, other indicators highlight significant challenges. Current market conditions and competition may make it difficult for Ethereum to attain and sustain a $3,000 price level in the near future. As of June 5, 2025, 18:09 UTC, Ethereum (ETH) is trading at $2,567.60, and its 24-hour trading volume has decreased by 2.637%. Solana (SOL) is trading at $149.39, and its 24-hour trading volume has decreased by 4.538%.