Since May 10, the trading price of Ethereum (ETH) has fluctuated within a relatively narrow range of $2,370 to $2,770, but several indicators suggest it has upward potential. When analyzing Ethereum's second-layer scaling solutions, Ethereum continues to lead in deposits and activity within the blockchain space.
Although Ethereum has not managed to reclaim its all-time high during the 2024-2025 cycle, none of the so-called "Ethereum killers" come close to its total locked value (TVL) of $66 billion. Ethereum currently holds a dominant market share of 61%, while the two largest competitors combined account for only 14%.
In the past 30 days, the TVL of Ethereum's base layer has grown by 6%, primarily due to the growth of Pendle, Ethena, and Spark. In contrast, the TVL of BNB Chain has decreased by 6%, and Solana's deposits have dropped by 2%. More importantly, the surge in deposits on competing blockchains during the meme coin craze at the beginning of 2025 has proven to be unsustainable.
Due to high fees on the base layer, Ethereum has indeed lost some advantages in decentralized exchange (DEX) trading volume, which remains a barrier for most users. However, its second-layer solutions recorded a total of $70 billion in DEX activity over the past 30 days, maintaining Ethereum's leading position within the entire ecosystem. Major contributors include Base, Arbitrum, Unichain, and Polygon.
Interestingly, some networks that once challenged Ethereum's dominance in base layer scalability are no longer among the top six in DEX activity. For example, Tron reportedly had a trading volume of only $4.5 billion over the past 30 days, while Avalanche recorded $4.2 billion. In comparison, the total trading volume of Ethereum and its scaling solutions reached $136.8 billion.
Critics of Ethereum have raised concerns about its sustainability, pointing out that it recorded only $43.3 million in on-chain fees over the past 30 days. Recent network updates have prioritized benefits for rollups, introducing large, low-cost temporary data packets known as blobs. As a result, the returns for stakers are negatively impacted, as Ethereum's supply largely depends on network fees.
In addition to its on-chain dominance, Ethereum remains the only altcoin in the U.S. to have an approved spot exchange-traded fund (ETF). This advantage has helped it solidify a $10 billion market, while competitors like Solana and XRP are still waiting for decisions from the U.S. Securities and Exchange Commission (SEC). Analysts expect the final ruling to be announced before mid-October.
Since May 16, the spot ETH ETF has not recorded a single day of net outflows, with a cumulative net inflow of $837 million during this period. While this buying pressure may seem insignificant compared to Ethereum's average daily trading volume of $4 billion on major exchanges, it indicates that institutional interest is increasing.
Ethereum's short-term supply (measured by exchange deposits) has dropped to a historical low of nearly 16.33 million ETH. Meanwhile, 28.3% of the total Ethereum supply is currently locked in staking, and this dynamic supports a positive price trend as demand increases.
The sharp 48% increase in Ethereum from May 7 to May 14 highlights the imbalance between holders and potential buyers. Considering Ethereum's on-chain metrics and the rising demand for spot ETFs, a breakout above $2,800 seems possible in the short term.
This article is for general informational purposes only and should not be considered or construed as legal or investment advice. The views, thoughts, and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Related: Bitcoin (BTC) touches $110,000 again, is Ethereum (ETH) set for a catch-up rally?
Original: “Ethereum Network Growth, Spot ETH ETF Inflows, and Price Gains Lure New Investors”
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