Ethereum Price Rally Gains Steam Amid ETF Inflows and Network Dominance
Key Takeaways
- Ethereum’s recent price gains stem from upticks in network activity and steady inflows into spot Exchange-Traded Funds (ETFs).
- However, the price hurdle at $2,800 appears challenging to overcome, despite positive factors.
Ether (ETH) has largely consolidated since its peak on May 10, trading within a range typically between $2,370 and $2,770. Nonetheless, several indicators suggest potential for upward movement.
Ethereum continues a leadership role within the blockchain ecosystem, considering its base layer and layer-2 scaling solutions collectively. Metrics show dominance in deposits and overall activity.
Despite failing to reclaim its all-time high, Ethereum maintains an overwhelming lead over competitors often dubbed “Ethereum killers.” None have approached its $66.6 billion total value locked (TVL), accounting for nearly two-thirds (61%) of the market compared to the combined share of the next two largest networks (14%).
The base layer’s TVL increased 6% over the last 30 days, spearheaded by contributions from Liquid staking derivatives like Pendle, Ethena, and spark. Nearby competitors saw declines: BNB Chain’s TVL fell 6%, and Solana’s deposits dropped 2%. Earlier memecoin activity in 2025 spurred unsustainable surges on challenging chains.
Network Performance Metrics
Ethereum’s decentralized exchange (DEX) volumes faced pressure due to elevated base layer transaction fees, deterring many users. However, its layer-2 scaling ecosystem thrived, recording a robust $70 billion in DEX activity over the past 30 days, reinforcing Ethereum’s overall dominance. Key layer-2 networks driving this volume include Base, Arbitrum, Unichain, and Polygon.
Demostrably, networks previously seen as potential challengers lack impactful presence in current DEX rankings. Tron and Avalanche currently register just $4.5 billion and $4.2 billion respectively in 30-day volume. Ethereum and its layer-2 solutions collectively tallied $136.8 billion in DEX activity over the last month—a stark contrast.
Concerning Ethereum’s network dynamics, critics highlight the modest $43.3 million in chain fees generated over the past 30 days. Recent protocol enhancements prioritize rollup benefits via data blobs, impacting ETH’s supply reduction mechanism which traditionally relied more heavily on network fees collected from users.
Fundamental Drivers
From a fundamental standpoint, Ethereum’s exclusive access to U.S.-approved spot ETFs stands out, bolstering institutional interest and providing a distinct advantage over rivals like Solana and XRP, whose ETF futures remain pending SEC decisions, likely culminating in October. This crucial feature helped Cryptoasset index firm CoinShares confirm $10 billion in inflows into the spot market.
Spot ETH inflows have run uninterrupted since May 16, now having accumulated $837 million in net two-week inflows—a testament to the sustained buying interest, even if measured partly against an average daily ETH volume of ~$4 Billion.
Ethereum’s supply side also presents arguably positive signs for price pressure: exchange holdings reached a record low near 16.33 million ETH, while 28.3% of the total Ether supply is staked. This high staking rate incentivizes selling (unlocking) during rallies, increasing available supply as demand grows. Conversely, the recent 48% boom between May 7 and May 14 highlights the strength in demand currently outweighing available supply.
Conclusion
Considering the confluence of strong network metrics, sustained ETF inflows signaling institutional adoption, a very low exchange supply, and a high staked supply, a technical breakout above the $2,800 resistance barrier seems plausible on the near-term charts.
