In recent weeks, Ethereum has emerged as a focal point in the cryptocurrency ecosystem due to noticeable on-chain activity and growing institutional interest.
Institutional Investment Surge
The latest report from CoinShares reveals a significant rebound in institutional investments in digital asset products. Last week alone, these products saw inflows of $176 million, with Ethereum attracting $155 million, marking the highest year-to-date intake since 2021. This influx of capital is largely attributed to the recent launch of US spot-based ETFs, which have drawn significant attention from institutional investors. James Butterfill, head of research at CoinShares, emphasized that this surge in inflow reflects strong and positive sentiment towards Ethereum and highlights its increasing prominence in the crypto market.
Ethereum’s Layer-2 Networks
On August 12, Ethereum layer-2 networks recorded a cumulative 298 transactions per second (TPS), just shy of the previous all-time high of 322 TPS set on July 18. This high level of activity demonstrates the scalability and efficiency of Ethereum’s layer-2 technologies, which are crucial for supporting the network’s expanding user base. Base and Arbitrum, two prominent layer-2 solutions, reported 2.64 million and 1.37 million weekly active users, respectively.
dApps Activity and TVL
Uniswap, a leading DEX on the Ethereum network, has been particularly noteworthy. July saw a record-setting 8.65 million new addresses created on Ethereum’s layer-2 networks via Uniswap, nearly doubling the 4.93 million addresses added in June. Ethereum’s total value locked (TVL) on its mainnet currently stands at $98 billion, indicating its continued dominance in the DeFi space. Meanwhile, the total value locked across all Ethereum layer-2 networks has reached $38 billion.
The recent surge in activity and institutional interest in Ethereum underscores its vital role in the cryptocurrency ecosystem. Layer-2 networks and decentralized applications continue to show growth, affirming the platform’s significance for the future of financial technologies.
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