Ether (ETH) climbed 3% between Thursday and Friday, outperforming the broader cryptocurrency market as growing tokenization activity and the launch of Robinhood Chain boosted investor sentiment. However, the rally stalled below the $1,800 resistance level, and weak onchain and derivatives metrics suggest the asset remains vulnerable to a retest of $1,700 support.
Tokenization and Robinhood Chain drive ETH momentum
The successful debut of Robinhood Chain, a layer-2 network that uses ETH as its native gas token, has injected fresh optimism into the Ethereum ecosystem. The network has already attracted $106 million in bridge deposits. Robinhood, the trading platform, now offers tokenized stocks to customers in 120 countries, strengthening the EVM-compatible ecosystem and driving demand for ETH.
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Ethereum continues to dominate the real-world asset (RWA) tokenization market with a 47% market share, according to data from Rwa.xyz. Notable tokenized assets on the network include SKY’s Tether Gold (XAUT), Ondo US Dollar Yield (USDY), and Franklin Templeton’s government bonds (iBENJI). Tokenized stocks such as Strategy’s PP variable (STRCx) from xStocks and Circle Group (CRCLon) from Ondo are also gaining traction.
Leon Waidmann, head of Research at Lisk, highlighted an unusual market signal: for the first time in history, the total value locked (TVL) on Ethereum reached $260 billion, surpassing Ether’s market cap of $210 billion. Waidmann argued that this distortion suggests ETH is underpriced relative to the value secured on its network, even when compared to the 2022 bear market.
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Onchain and derivatives data temper bullish outlook
Despite the positive developments in tokenization and institutional inflows, onchain metrics paint a more cautious picture. The prolonged bear market of 2026 has reduced overall blockchain demand, and competing networks have gained ground in sectors such as synthetic perpetual futures and automated yield vaults.
Decentralized applications (DApps) on Ethereum generated only $11 million in weekly revenue, down from $20 million in the first quarter of 2026. Active addresses also declined to 3.2 million from 5.4 million over the same period, according to DefiLlama. Notable contributors to current revenue include Sky at $3.1 million, Titan Builder with $2.4 million, and Chalink’s $1.1 million.
ETH’s perpetual futures annualized funding rate dropped to 3% on Saturday, falling below the 6% neutral threshold and signaling weak demand for bullish leveraged positions. This contrasts with the 12% peak seen on Friday, suggesting that traders lack conviction despite the recent price gains.
Institutional accumulation offers a counterbalance
Institutional inflows may be providing the underlying support for ETH’s price. Arkham Intelligence flagged a withdrawal of 20,500 ETH (worth approximately $36 million) from Galaxy Digital to a new wallet on Thursday, a pattern consistent with previous purchases by Tom Lee’s BitMine Immersion (BMNR US). BitMine has added 198,370 ETH in the past 30 days alone, bringing its total treasury reserves to $10.3 billion.
This accumulation pace suggests that institutional players remain confident in Ethereum’s long-term value, even as retail and speculative demand weakens.
Conclusion
The mixed signals from strong tokenization fundamentals and institutional buying on one hand, and weak onchain activity and derivatives data on the other, leave Ether’s near-term trajectory uncertain. While a retest of $1,700 is possible, the aggressive accumulation by BitMine and growing real-world asset tokenization provide a floor that may prevent a deeper decline. Traders should watch onchain activity and funding rates for signs of renewed bullish conviction.
FAQs
Q1: Why did Ethereum’s price rise 3% despite weak onchain metrics?
The rally was driven by positive sentiment from the launch of Robinhood Chain and continued growth in tokenized real-world assets on Ethereum, along with institutional accumulation by firms like BitMine. However, the broader onchain activity and derivatives data remain weak, capping further upside.
Q2: What is the significance of TVL exceeding Ether’s market cap?
When the total value locked on Ethereum surpasses Ether’s market cap, it suggests that the network’s economic activity is undervalued relative to the asset’s price. Some analysts interpret this as a signal that ETH is underpriced, similar to patterns seen in past bear markets.
Q3: Could Ether fall back to $1,700?
Yes, the weak funding rate and declining DApp revenue and active addresses indicate that bullish momentum is fragile. If broader market conditions worsen or institutional buying slows, a retest of $1,700 support is possible. However, strong accumulation by entities like BitMine may limit the downside.
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