"ETH Slips Below $2,200 as Onchain Activity Declines"

Ethereum (ETH) price has been hovering below the $2,200 mark, with investors expressing concerns about the token's recent underperformance. Despite a 14.2% surge following a rebound from the $2,000 support level on March 4, ETH has struggled to maintain levels above $2,200. Over the past two weeks, ETH has underperformed the broader cryptocurrency market by 11%, indicating a lack of bullish momentum.

Several factors have contributed to the weaker sentiment surrounding ETH, including declining onchain activity, a lower total value locked (TVL), a net positive ETH issuance rate, and speculation surrounding a potential US strategic digital asset reserve. These factors have led to a decrease in demand for ETH as Ethereum's native token.

Ether investors may also be concerned about the growing likelihood of Solana (SOL) securing approval for spot exchange-traded funds (ETFs) in the US. This could increase competition for institutional capital, as only Bitcoin (BTC) and ETH currently hold this status. Between Feb. 19 and March 4, Ether ETFs saw $336 million in net outflows, highlighting weak ETH performance.

To understand the key drivers behind Ether's underperformance, it is essential to analyze Ethereum's onchain metrics. The Ethereum network maintained its leadership in 7-day decentralized exchange (DEX) volume, reaching $22.45 billion. However, the gap with competitors narrowed, particularly as Solana saw a 4% gain over the same period. Key weaknesses for Ethereum included a 49% drop in activity on Curve Finance and a 16% decline in Pendle volumes.

Similarly, Ethereum's total value locked (TVL) fell 13% over two weeks to $50.8 billion, raising concerns about whether ETH can outperform the broader cryptocurrency market in the near term. In comparison, BNB Chain's TVL declined by 8% in the same period, though it remains significantly smaller at $5.1 billion.

The slowdown in Ethereum's onchain activity has created an unusual scenario where average transaction fees fell below $1 for the first time since July 2020. However, demand for blockchain processing remains weak, leading to an increase in