FameEX Hot Topics | Ethereum Network Expansion, ETH ETF Inflows, and Price Surge Draw New Investors

Since May 10, Ethereum has traded within a relatively narrow range of $2,370 to $2,770. Despite this, several indicators suggest that the asset may experience upward movement in the near future. Ethereum continues to lead the blockchain space in both deposits and network activity, especially when its layer-2 scaling solutions are taken into account. This ongoing dominance underscores Ethereum's position as the market leader, even as competition in the space intensifies.

While Ether has yet to reclaim its all-time high during the 2024–2025 cycle, Ethereum remains far ahead of its competitors, often referred to as “Ethereum killers.” These challengers have not been able to match Ethereum's impressive $66.6 billion in total value locked (TVL), reinforcing its superior standing in the decentralized finance (DeFi) space. Ethereum currently holds a commanding 61% share of the market, while its two largest competitors together make up only 14%. This significant lead underscores Ethereum's entrenched position as the primary blockchain for DeFi.

Ethereum’s base layer TVL has grown by 6% over the past 30 days, a noteworthy achievement, especially in light of the surge in deposits across competing blockchains during the 2025 memecoin frenzy. This trend, however, has proven to be unsustainable, which further solidifies Ethereum's long-term dominance. Despite losing some ground in decentralized exchange (DEX) volumes due to high base-layer fees, Ethereum's layer-2 solutions have been a major strength. These platforms recorded a substantial $70 billion in DEX activity over the same period, helping Ethereum maintain its leading position within the ecosystem.

Interestingly, several networks that once aimed to challenge Ethereum's scalability have now dropped out of the top six in terms of DEX activity. This shift highlights Ethereum's enduring relevance, despite criticisms regarding its sustainability. Some critics have raised concerns over Ethereum's modest $43.3 million in chain fees over the past 30 days. However, recent network updates, such as the introduction of blobs—large, low-cost temporary data packets—are expected to address these scalability challenges and improve Ethereum’s overall efficiency.

In addition to its on-chain dominance, Ethereum remains the only altcoin with approved spot exchange-traded funds (ETFs) in the United States. Since May 16, these spot ETH ETFs have recorded net inflows of $837 million, with no days of net outflows. While this buying pressure may seem small compared to Ethereum's daily trading volume of $4 billion, it signals a growing institutional interest in the asset. Furthermore, Ether’s short-term supply has dropped to a record low of 16.33 million ETH, while 28.3% of the total supply is now locked in staking. This supply-demand dynamic, along with a sharp 48% rally in ETH between May 7 and May 14, suggests potential for further positive price movement.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.