According to a research report by Citi, while Ether (ETH) has declined by over 20% year-to-date, its fundamentals are improving. The report highlights the dramatic rise in total value locked (TVL) on the Ethereum blockchain, the inflows into ether exchange-traded funds (ETFs), and the increasing search interest in Ether. The report also mentions the stronger user growth on layer-2s and rival blockchains like Solana, questioning Ethereum's competitive advantage. Additionally, the report points out that President Trump's World Liberty Financial holds over $200 million worth of ether, which could motivate the US to strengthen its support for the crypto industry. Citi suggests that the performance of ETH and altcoins could be an indicator of optimism surrounding regulatory clarity in the US. The report further mentions that the weakness in Ether has coincided with an increase in bitcoin dominance, currently at multi-year highs above 60%.



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