Ethereum

DeFi

Base

James

In recent weeks, Ethereum has emerged as a focal point in the cryptocurrency ecosystem, with a noticeable uptick in on-chain activity. This rise in engagement is attributed to a surge in institutional interest and increased activity across Ethereum’s decentralized exchanges (DEXs) and layer-2 networks.&nbsp;
<h2 dir="ltr" id="span-span-institutional-investment-surge-span-span">Institutional Investment Surge</h2>
The<a style="text-decoration:none" href="https://blog.coinshares.com/volume-195-digital-asset-fund-flows-weekly-report-e29fcaa8713d" rel="noopener noreferrer nofollow"> latest report</a> from CoinShares reveals a significant rebound in institutional investments in digital asset products. Last week alone, these products saw inflows of $176 million.&nbsp;
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Ethereum stood out with $155 million in inflows, 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.
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James Butterfill, head of research at CoinShares, emphasized that this surge in inflow reflects a strong and positive sentiment toward Ethereum and highlights its increasing prominence in the crypto market.
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Investors reportedly capitalized on recent price corrections, viewing them as an opportunity rather than a setback. CoinShares notes that while total assets under management (AuM) had fallen to $75 billion, over $20 billion was wiped off, but have since recovered to US$85 billion.&nbsp;
<h3 dir="ltr" id="span-span-ethereum-s-layer-2-networks-in-focus-span-span">Ethereum’s Layer-2 Networks in Focus</h3>
On August 12, Ethereum layer-2 networks&nbsp;<a style="text-decoration:none" href="https://l2beat.com/scaling/activity?sort-by=30d-count&amp;sort-order=desc" rel="noopener noreferrer nofollow">recorded</a> 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.
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Base and Arbitrum, two prominent layer-2 solutions, reported&nbsp;<a style="text-decoration:none" href="https://l2beat.com/scaling/projects/base#activity" rel="noopener noreferrer nofollow">2.64 million</a> and&nbsp;<a style="text-decoration:none" href="https://l2beat.com/scaling/projects/arbitrum#activity" rel="noopener noreferrer nofollow">1.37 million</a> weekly active users, respectively.
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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.&nbsp;
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Ethereum’s total value locked (TVL) on its mainnet currently stands at&nbsp;<a style="text-decoration:none" href="https://defillama.com/chain/Ethereum?staking=true&amp;pool2=true&amp;govtokens=true&amp;borrowed=true&amp;doublecounted=false&amp;liquidstaking=true&amp;vesting=true" rel="noopener noreferrer nofollow">$98 billion</a>, indicating its continued dominance in the DeFi space. Meanwhile, the total value locked across all Ethereum layer-2 networks has reached $38 billion.&nbsp;

Ethereum Sees Surge in On-Chain Activity as Institutional Investment Soars

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