ETH demand cools as ETF outflows hit $447M and network activity drops

[kevin1]

Ether faced additional pressure as US-listed spot ETH ETFs recorded $447 million in net outflows over five days, signaling cooling institutional demand. This comes as Ethereum network activity weakened sharply, with DEX trading volumes falling 47% since October, reducing incentives for holding ETH.

Lower activity also slows Ethereum’s token burn mechanism, limiting supply reduction. While some firms continue to accumulate ETH, traders remain cautious given the $14.4 billion held in Ethereum ETFs and the risk of further sell pressure. With onchain metrics still deteriorating, sentiment around Ether remains defensive amid broader macro uncertainty.

[mendez]

people really underestimated how much the burn depends on actual usage. fewer dex trades means eth inflation creeps back in.