#EthereumFuture The low demand for data processing on the Ethereum network makes ETH inflationary, as the built-in burn mechanism is not sufficient to balance the new coins issued to cover staking rewards.

Despite being the clear leader in Total Value Locked (TVL), traders generally are not interested in this metric, as it has not translated into greater demand for the Ethereum network or increased scarcity of ETH.

As a result, even if the fundamentals of Ethereum improve, optimism among ETH holders is decreasing, while competitors—especially Solana and Ripple investors—are hopeful for the approval of their spot exchange-traded funds (ETFs) in the U.S. Currently, spot ETFs in the U.S. are only available for Bitcoin and Ether, so additional offerings would likely reduce potential institutional demand for altcoins.