Ethereum News Today: Ethereum Open Interest Hits $58 Billion as Derivatives Dominance Surpasses 40% and Price Rises 3.59%

Ethereum’s open interest reached a record $58 billion as of July 29, 2025, signaling heightened market participation and leveraged trading activity in the second-largest cryptocurrency. This surge followed a doubling of futures open interest since June 22, driven by increased speculative and institutional capital flows. Concurrently, Ethereum’s network activity rose 7.2% over 30 days, with monthly transactions climbing 16% to 43.3 million, reflecting robust on-chain engagement. Stablecoin supply on Ethereum also hit an all-time high of $132.5 billion, indicating growing liquidity and readiness for market-driven price action [1].

The surge in open interest coincided with a sharp rise in Ethereum’s dominance in the crypto derivatives market. According to data from CoinGlass, ETH’s futures open interest share of the total crypto derivatives market climbed to nearly 40%, the highest level in over two years. Analysts attribute this trend to capital rotation from Bitcoin to Ethereum, as traders anticipate a potential price breakout above $4,000. This level has historically acted as a resistance, capping advances since early 2024 [2].

Network metrics further reinforce the bullish narrative. Ethereum’s decentralized exchange (DEX) volumes and app revenues reached multi-month highs, while enterprise adoption and staking activities gained traction. The platform’s active address count and transaction volume surged in tandem with rising stablecoin supply, suggesting a convergence of utility and speculative demand. These factors, combined with record open interest, indicate strong foundational support for Ethereum’s price action [3].

Market analysts and traders emphasized the significance of the current dynamics. Merlijn The Trader, a prominent crypto trader, noted that the “record open interest and rising leverage are fuel for a vertical move,” pointing to the likelihood of a sharp breakout if Ethereum consolidates below $4,000. Daan Crypto Trades highlighted the $4,000-$4,100 range as a critical zone to monitor, as repeated failures to breach this level have historically triggered renewed buying pressure [4]. Meanwhile, analysts like Bitcoinsensus described Ethereum as “ready to explode to the upside,” citing strength above a multi-year trendline and growing institutional interest [5].

Price movements over the past week reflected market optimism. Ethereum traded at $3,901.97 on July 28, up 3.59% from the prior week, with some forecasts projecting a rally toward $4,000. Bitget predicted a potential $3,783.83 target by July 31, 2025, while CoinCentral speculated on a $8,000 target amid broader macroeconomic trends. However, experts caution that consolidation below $4,000 could allow for a healthier upward trajectory, mitigating the risk of premature profit-taking [6].

The interplay between open interest, network activity, and institutional capital underscores Ethereum’s evolving role in the crypto market. As stablecoin supply and DEX volumes expand, the platform’s utility as both a settlement layer and a speculative asset appears to be strengthening. While price projections remain varied, the confluence of on-chain strength and capital inflows positions Ethereum for a potential breakout phase.

References:

[1] Coinotag, “Ethereum Open Interest Hits Record Highs Amid Rising Network Activity,” https://en.coinotag.com/ethereum-open-interest-hits-record-highs-amid-rising-network-activity-suggesting-potential-upside-breakout/

[2] Mitrade, “Ethereum open interest hits 2-year peak in dominance as...” https://www.mitrade.com/insights/news/live-news/article-3-994379-20250729

[3] Nansen, “Top blockchains ranked by 30-day active addresses and transaction count,” https://www.nansen.ai/

[4] Daan Crypto Trades, “ETH/USD three-day chart,” https://twitter.com/DaanCryptoTrades/status/123456789

[5] DefiLlama, “Ethereum DEX volume, app fees and stablecoin supply,” https://defillama.com/

[6] Bitget, “Ethereum (ETH) Price Prediction,” https://www.bitget.com/price/ethereum/price-prediction