Negative: ETH price drops, DEX volumes down 34%, squeezed by competition and reduced demand.

From Cointelegraph

March 18, 2025 5:55 pm:

Ether (ETH) price drops below $2,200, down 14% in March, impacting investor sentiment as broader crypto market only drops 4%. Decentralized exchange (DEX) activity on Ethereum network falls 34% in a week, affecting layer-2 solutions like Base, Arbitrum, and Polygon. PancakeSwap fees surpass Uniswap, signaling weakening demand for ETH.

Ethereum remains leader in total value locked (TVL) at $47.2 billion, but TVL gap with competitors narrows due to 9% weekly decline. Onchain metrics show reduced demand for leveraged longs in ETH futures, with a 3% annualized premium, lowest in over a year. Spot Ethereum ETFs record $293 million in net outflows since March 5.

Competition from Solana grows in memecoin sector with launch of Official Trump (TRUMP) token, while Tron and Solana capture $75 billion in stablecoins with lower transaction fees. Hyperliquid perpetual futures introduce own blockchain, posing challenge to Ethereum. Debate ensues over whether layer-2 solutions benefitting disproportionately from low rollup fees.

Read more at Cointelegraph: ETH price prospects dim as Ethereum DEX volumes drop 34% in a week