Ethereum Network Booms, But Weaker US Demand Holds Back Price Growth

The Ethereum network is experiencing increased usage and staking activity, but its price remains stagnant. According to two reports from CryptoQuant, Ethereum's growth is largely driven by global demand rather than US investor interest.

CryptoQuant analyst Arab Chain highlighted the negative Coinbase Premium Index for Ethereum, which stands at -0.0833. This indicates that ETH is cheaper on Coinbase than on Binance, suggesting weaker institutional demand in the US market compared to other regions.

The reports also show a widening gap between Ethereum's on-chain activity and exchange participation. New smart contract deployments rose 82.3% over the past 90 days, while median transaction tips more than doubled. Median token transfer volumes increased by 50-80% across externally owned accounts and smart contracts.

However, these metrics have not yet translated into price growth for ETH. The asset has remained within its recent price range of $1,840-$1,950, with a current trading value near $1,900. Ethereum's staking rate continues to climb, reaching 33.97%, reducing the available supply and potentially supporting future price gains.

CryptoOnchain noted that similar market conditions in the past have preceded periods of tightening ETH supply. If demand returns, it could provide a stronger foundation for future price growth.