FameEX Hot Topics | Ethereum Network Growth, ETH ETF Inflows, and Price Gains Attract New Investors

Since May 10, Ethereum has traded within a narrow range of $2,370 to $2,770, yet multiple indicators suggest the potential for upward movement. When considering its layer-2 scaling solutions, Ethereum continues to lead the blockchain space in terms of both deposits and network activity. This dominance reinforces its position as the market leader, even in a time of heightened competition.

Despite Ether’s failure 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 failed to match Ethereum's impressive $66.6 billion in total value locked (TVL). Ethereum currently holds a commanding 61% market share, while the next two largest competitors together only account for a mere 14%. This underlines Ethereum's continued dominance in the decentralized finance space.

Over the past 30 days, Ethereum’s base layer TVL grew by 6%. This growth is significant, especially considering the surge in deposits across competing blockchains during the 2025 memecoin frenzy, which has since proven unsustainable. Although Ethereum lost some ground in decentralized exchange (DEX) volumes due to high base-layer fees, its layer-2 solutions have been a source of strength. Ethereum's layer-2 platforms collectively recorded $70 billion in DEX activity over the same period, helping it maintain its leading position across the ecosystem.

Interestingly, some networks that initially aimed to challenge Ethereum’s scalability have now fallen out of the top six in terms of DEX activity. This shift highlights Ethereum’s continued relevance despite criticisms regarding its sustainability. Critics have raised concerns about Ethereum's modest $43.3 million in chain fees over the past 30 days. However, recent updates to the network, including the introduction of blobs—large, low-cost temporary data packets designed to enhance rollups—are expected to alleviate scalability issues.

Ethereum remains the only altcoin with approved spot exchange-traded funds (ETFs) in the United States, which has contributed to growing institutional interest. Since May 16, these spot ETH ETFs have seen net inflows of $837 million, with no days of net outflows. While this buying pressure might seem modest compared to Ethereum’s average daily volume of $4 billion, it signals significant institutional interest. Additionally, 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 supports further positive price movement, as evidenced by the 48% ETH rally between May 7 and May 14.

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