Ethereum

bullish

Grayscale Bitcoin Trust

The Grayscale Ethereum Trust (ETHE) has posted its first day of zero outflows, ending a consecutive daily onslaught of outflows since its launch.&nbsp;
It comes as Ethereum and several of its layer-2 networks witnessed a surge in onchain activity.
On Aug. 12, United States-based spot Ether (<a href="https://cointelegraph.com/ethereum-price">ETH</a>) exchange-traded fund (ETF) flows flipped positive for the fifth time since they launched on July 23, aided by ETHE posting its first day of zero outflows, <a href="https://farside.co.uk/eth/" target="_blank" rel="noopener nofollow">according</a> to Farside data. 
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/08ecc3ac-8415-487f-be41-13d4f5bf8537.png" alt="Grayscale ETH ETF stems bleeding as activity spikes on Ethereum" title="">
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 ETHE posted its first day of zero outflows on Aug. 12. Source: Farside Investors
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ETHE has hemorrhaged nearly $2.3 billion in Ether since its launch. 
Before its conversion, ETHE held a total of $9 billion in ETH on its books, meaning the fund has shed more than 25% of its total holdings in the two and a half weeks the ETFs have been live.&nbsp;
In comparison, the Grayscale Bitcoin Trust (GBTC) <a href="https://cointelegraph.com/news/grayscale-gbtc-inflows-record-bitcoin-exchange-traded-fund-etf">took nearly four months</a> before it saw its first day without outflows.&nbsp;
Grayscale’s first day of zero ETH ETF outflows came amid a sharp uptick of activity on Ethereum across decentralized exchanges (DEXs) and its layer-2 networks. 
While trading volumes across Solana-based DEXs declined by 10% in the last 24 hours, trading volumes on Ethereum and Base rose 12% and 11%, respectively, within the same time frame, <a href="https://defillama.com/dexs/chains" target="_blank" rel="noopener nofollow">according</a> to DefiLlama data. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/2be431c6-0dbf-4034-b305-4d0b1bcabed2.png" alt="Grayscale ETH ETF stems bleeding as activity spikes on Ethereum" title="">
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 Ethereum-based DEXs have witnessed a slight resurgence in the last 24 hours. Source: DefiLlama
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Activity on Ethereum layer-2 networks has also been heating up, with a record number of new monthly L2-based addresses being created on the Ethereum-based DEX Uniswap.
Related: <a href="https://cointelegraph.com/news/ether-etf-weekly-flow-hits-positive">Ether ETF weekly flows turn positive for first time since launch</a>
Uniswap saw a total of 8.65 million new addresses created across layer-2 networks in July, nearly double that of the 4.93 million added in June, <a href="https://dune.com/queries/3975071/6689468" target="_blank" rel="noopener nofollow">according</a> to Dune Analytics data. 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-08/f9ea2c93-acec-4468-ae53-9f9e872e35c9.png" alt="Grayscale ETH ETF stems bleeding as activity spikes on Ethereum" title="">
 <figcaption style="text-align: center;">
 Uniswap saw 8.65 million new addresses created last month. Source: Dune Analytics
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In an Aug. 9 <a href="https://x.com/LeonWaidmann/status/1821789222250111096" target="_blank" rel="noopener nofollow">post</a> to X, Leon Waidmann noted that Base and Arbitrum touted 2.64 million and 1.37 million weekly active users, respectively. 
Meanwhile, a total of 73 Ethereum layer-2 networks posted a cumulative 298 transactions per second of network activity on Aug. 12, just 34 TPS from the previous all-time high of 322 TPS reached on July 18, <a href="https://l2beat.com/scaling/activity?sort-by=30d-count&amp;sort-order=desc" target="_blank" rel="noopener nofollow">according</a> to L2Beat data. 
The total value locked across all Ethereum L2s now stands at $37.7 billion, while Ethereum touts $85 billion in TVL on its mainnet. 
<h2 data-ct-non-breakable="true" id="dwindling-outflows-could-be-a-bullish-catalyst">Dwindling outflows could be a bullish catalyst</h2>
Several analysts have <a href="https://cointelegraph.com/news/grayscale-eth-etf-outflows-may-subside-this-week">looked to dwindling ETHE outflows</a> as one of the primary bullish catalysts for the price of Ether in the coming months. 
They suggested that ETH’s price could chart a similar course to Bitcoin (<a href="https://cointelegraph.com/bitcoin-price%5C">BTC</a>) in the wake of its spot ETF approvals, which was also marred by heavy outflows from GBTC. 
Magazine: <a href="https://cointelegraph.com/magazine/ethereum-ico-blockchain-forensics-double-spending-debate/">Decade after Ethereum ICO: Blockchain forensics end double-spending debate</a>

Grayscale ETH ETF stems bleeding as activity spikes on Ethereum

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