ETH
by BSCN
August 13, 2024
This surge reflects growing confidence in Ethereum, bolstered by the successful launch of US spot-based ETFs.
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.
The latest report from CoinShares reveals a significant rebound in institutional investments in digital asset products. Last week alone, these products saw inflows of $176 million.
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.
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.
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.
On August 12, Ethereum layer-2 networks recorded 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.
Base and Arbitrum, two prominent layer-2 solutions, reported 2.64 million and 1.37 million weekly active users, respectively.
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.
Ethereum’s total value locked (TVL) on its mainnet currently stands at $98 billion, indicating its continued dominance in the DeFi space. Meanwhile, the total value locked across all Ethereum layer-2 networks has reached $38 billion.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
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