Ethereum (ETH) price struggles below $2,200, facing mounting challenges as decentralized exchange (DEX) trading volume on the network drops 34% in a week. The decline signals weakening demand for Ethereum-based DeFi, as rivals like Solana (SOL), Tron (TRX), and BNB Chain (BNB) make significant gains.Ethereum’s DeFi Activity Shrinks as BNB Chain SurgesEthereum's DEX volume fell 34% in the last seven days, impacting layer-2 solutions such as Base, Arbitrum, and Polygon.BNB Chain saw a 27% volume increase, while Canto surged 445%, highlighting shifting trader preferences.PancakeSwap (BNB Chain) overtook Uniswap (Ethereum) in total fees, signaling declining demand for ETH as transaction costs become less attractive.Ethereum’s leading DeFi protocols—Maverick Protocol and DODO—recorded 85% and 46% volume declines, respectively.Ethereum’s TVL Drops, ETH Futures Show Weak DemandWhile Ethereum remains the top blockchain in total value locked (TVL) at $47.2 billion, its 9% weekly decline has narrowed the gap with competitors.BNB Chain deposits increased 6% in the past week, while Ethereum’s key DeFi projects saw major losses:Stargate Finance TVL dropped 11%Maker deposits declined 9%Spark Finance saw a 6% reductionEthereum futures premiums fell to a 3% annualized rate, the lowest in over a year, indicating waning bullish sentiment among traders.Ethereum spot ETFs recorded $293 million in outflows since March 5, signaling diminished institutional interest.Can Ethereum Compete? Pectra Upgrade Holds the KeyEthereum faces increasing competition, particularly from Solana’s growing memecoin market and Tron’s dominance in stablecoins. Meanwhile, Hyperliquid’s new blockchain for perpetual futures trading further threatens Ethereum’s standing in the DeFi space.For Ethereum to regain investor confidence and market share, it must provide a competitive edge. The upcoming “Pectra” upgrade needs to drive sustainable adoption and improve scalability, or ETH risks losing further ground to rivals, according to Cointelegraph.
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