Why is all the capital flowing back to Ethereum in 2025? Behind the $4.2 billion net inflow is the 'reset' of the public chain competition landscape: 1. Return to security: During market volatility and liquidation events, L1's certainty far surpasses L2, and funds are returning to Ethereum as a 'safe haven.' 2. L2 bubble deflation: Chains like Arbitrum are facing severe capital outflows due to reduced incentives and fragmented liquidity. 3. Infrastructure shift: Ethereum is no longer just a speculative platform but has become the absolute cornerstone for stablecoin settlements and RWA (real-world asset) tokenization. After last year's L2 craze, whale and institutional funds are accelerating their return to L1. Funds go round and round, but in the end, they still find their way back to the ETH mainnet.