Ethereum News Today: Ethereum's Open Interest Soars as TVL Fades and Rivals Gain Ground

Ethereum's open interest surged to $60.8 billion as of late October 2025, reflecting renewed trader optimism despite mixed signals on leveraged positioning and network fundamentals. According to a Cointelegraph report, CoinGlass data show the aggregate open interest in ETH futures rose 27% week-over-week, driven by a 51% price rally in the last 30 days. However, leveraged long demand remains subdued, with the ETH perpetual futures annualized premium at 11%—a neutral level compared to previous bullish cycles where readings exceeded 13%. This suggests traders are prioritizing spot exposure over aggressive leveraged bets, possibly due to uncertainty around Ethereum's on-chain activity and competition from layer-1 rivals like Solana and Tron.

Institutional interest in Ethereum, evident from spot ETF inflows, contrasts with declining total value locked (TVL) on the network. Ethereum's TVL dropped 7% to 23.3 million ETH over 30 days, while weekly base layer fees fell 27% to $7.5 million, trailing Solana's $9.6 million and Tron's $14.3 million, the Cointelegraph report noted. This trend underscores growing corporate preference for proprietary layer-1 solutions, such as those developed by Stripe, JPMorgan, and Tether, which prioritize closed ecosystems over Ethereum's layer-2 integration. Meanwhile, Ethereum's staking activity remains robust, with 35.7 million ETH staked (29.8% of total supply) and 30% of inflows attributed to institutional treasuries, according to a Forbes analysis.

The recent market dynamics were further tested by a $20 billion liquidation event in mid-October 2025, triggered by U.S.-China trade tensions and Trump's tariff threats. Despite the volatility, Ethereum outperformed Bitcoin, rebounding to $4,150 by late October—3.5% above its 50-day EMA but 6% below the 200-day EMA, per a Currency Analytics report. Post-liquidation recovery was supported by Ethereum's staking structure, which limited panic-driven selling by keeping 30% of ETH supply locked in validators, the report added. Binance's transition to oracle-based collateral pricing also mitigated further instability after exchange-specific mispricing caused a localized collapse in stablecoin values, the same report said.

Looking ahead, Ethereum's price trajectory hinges on upcoming upgrades and macroeconomic factors. The Pectra upgrade in March 2025 is expected to enhance scalability and efficiency, potentially attracting more developers and capital, according to the earlier Forbes analysis. Analysts at Standard Chartered project Ethereum could reach $8,000 by 2026 if ETF inflows and network upgrades maintain momentum. However, risks persist: rising leverage in derivatives markets, with open interest surging $3.18 billion in 24 hours, could amplify volatility if leveraged positions unwind, per a NewsBTC report. Additionally, a $7 billion outflow of ETH into self-custody solutions—driven by staking demand and security concerns—may reduce short-term liquidity but could stabilize prices over the long term.

Ethereum's institutional adoption, evidenced by $33 billion in U.S. spot ETF assets under management, positions it as a hybrid between utility asset and store of value. This aligns with its dual role in DeFi (hosting 60% of total DeFi value, $166 billion) and real-world asset tokenization, as described in the Forbes analysis. However, competition from faster chains like Solana and regulatory uncertainties in the U.S. could delay its full potential. For now, Ethereum's price outlook remains cautiously bullish, with a base case targeting $5,000–$6,000 by late 2025 and a bear case warning of a potential drop to $3,000–$3,500 amid macroeconomic shocks.