The Premium For Ethereum Futures Hits A Three-Month Low. Is There A Low Value On ETH?

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Although the ETH contracts premium is at its lowest position since November 2023, historical data suggests that this is a good time to purchase. Although the 12.5% decline in the last three weeks has left Ether tickers down $2,274 investors may be unhappy, will a closer examination of the asset’s statistics inspire greater optimism or despair? 

The macroeconomic environment is partly to blame for the latest fall since investors no longer expect the US Federal Reserve to cut interest rates by March. The futures premium, however, has dropped to its lowest point in three months in spite of this, leading traders to surmise that their price is being pressured by another factor.

An Update To ETH Dencun Could Restore Positive Ethereum Pricing Momentum

Because of the high gas prices associated with the Ethereum network, traders and investors are constantly inconvenienced, and this puts a lot of pressure on the company to compete with scalability-focused blockchains like BNB Chain, Solana, and Avalanche. Although decentralization varies throughout networks, layer-1 solutions offer a usually more convenient user experience. As a result, the price scalability solutions are quite important.

Tim Beiko, the key developer of the same, declared on February 1st that the most recent testing of their network update was successful. Proto-dank sharding, which attempts to lower the costs of the roll-up scaling methods, will be introduced with the Dencun hard fork. Although the EF has not yet provided an official timeline, many anticipate that the mainnet will go live in March.

The top four networks, Arbitrum, Optimism, Manta, and Base, possess a combined total value locked (TVL) of $4.2 billion, exceeding BNB Chain’s $3.5 billion in smart contract deposits, underscoring the significance of layer-2 solutions, as reported by DefiLlama. More importantly, according to L2Beat, rollups completed 4.2 times more transactions per day during the previous week than the mainnet.