Ethereum network is growing stronger even though interest from U.S. investors is still low, according to two new CryptoQuant reports.
The reports show that Ethereum use and staking are increasing, but weaker institutional demand and lower exchange activity may slow $ETH’s price growth in the short term.
At the time of the analysis, $ETH was trading near $1,900. It stayed within its recent price range, despite major changes happening in the network behind the scenes.
Coinbase Premium Shows Weak U.S. Demand
CryptoQuant analyst Arab Chain said Ethereum’s Coinbase Premium Index is still negative at -0.0833, meaning $ETH is cheaper on Coinbase than on Binance.
A negative premium suggests that U.S. investors and institutions are buying less $ETH compared to traders in other markets. Binance, which handles more global crypto trading, is currently showing stronger demand.
The index briefly turned positive in April, showing a short boost in U.S. demand, but it quickly fell back below zero in early May and has stayed there.
According to Arab Chain, this shows global demand is currently stronger than U.S. demand. If the index remains negative, Ethereum may struggle to build a strong price rally. A return to positive levels could mean fresh U.S. institutional interest and support a stronger $ETH outlook.
On-Chain Activity Keeps Growing
In a separate report, CryptoQuant contributor CryptoOnchain highlighted a widening gap between Ethereum’s on-chain activity and exchange participation.
Ethereum closed at $1,883 on August 2, staying within the $1,840-$1,950 range. While price action has remained relatively flat, on-chain metrics suggest network usage is increasing.
Over the past 90 days:
- New smart contract deployments rose 82.3%.
- Median transaction tips more than doubled.
- Median token transfer volumes across externally owned accounts (EOAs) and smart contracts increased by 50% to 80% compared with quarterly averages.
These metrics point to organic growth in Ethereum’s network activity. However, that growth has yet to benefit the price.
Ethereum Exchange Activity Continues to Slow
While on-chain activity is strengthening, exchange metrics continue to weaken. CryptoOnchain reported that aggregate exchange netflows have fallen to 354% below their 90-day baseline.
Binance is also seeing weak inflows of stablecoin. Stablecoin net flows remain 120% below their 90-day average, suggesting investors are not moving significant capital to exchanges to buy $ETH aggressively.
Large-holder activity has also slowed. Top-10 exchange inflows and outflows have declined by nearly 40% over the past quarter.
Meanwhile, Ethereum’s staking rate has continued to climb, reaching 33.97%. This reduces the amount of $ETH available for trading.
Combined with the still-negative Coinbase Premium, the data suggests rising on-chain activity alongside weak U.S. spot demand. CryptoOnchain said similar market conditions have historically preceded periods of tightening $ETH supply. If demand returns, that could provide a stronger foundation for future price gains.
