18h05 ▪
4
min read ▪ by
Ethereum blockchain consolidates its dominant position thanks to sustained growth of its network and record institutional flows. Technical and fundamental signals converge towards a promising bullish momentum. But will this rise be enough to propel ETH to new heights?
In Brief
- Ethereum dominates decentralized finance with 66.6 billion dollars locked, representing 61% of the total market.
- Institutional investors are heavily injecting into Ethereum ETFs with 837 million dollars inflows since May.
- The limited supply of ETH available for sale creates upward pressure, with only 16.33 million tokens on platforms.
Ethereum’s technical supremacy withstands competitive assaults
Ethereum is currently going through a consolidation phase between 2,370 and 2,800 dollars since May 10. This apparent stability nonetheless masks an overwhelming dominance in the blockchain ecosystem.
With 66.6 billion dollars of total value locked (TVL), no “Ethereum killer” has managed to shake its hegemonic position.
The Ethereum blockchain currently holds 61% of the DeFi market share, its two main competitors accounting for less than 14% combined, a dominance highlighted by its growth in spot ETH ETFs and price performance.
This superiority is explained by the increasing efficiency of its layer 2 ecosystem. Base, Arbitrum, Unichain, and Polygon collectively generate 70 billion dollars in volume on decentralized exchanges over 30 days.
BNB Chain declines by 6% while Solana loses 2% of TVL over the same period. Ethereum advances 6%, supported by Pendle, Ethena, and Spark.
This performance illustrates the maturity of a network that favors substance over trends. Memecoins certainly gave a temporary boost to rival blockchains, but this momentum has proven unsustainable.
Institutional adoption via layer two solutions largely offsets the high fees of the main layer. Ethereum and its rollups total 136.8 billion dollars of DEX activity compared to only 4.5 billion for Tron and 4.2 billion for Avalanche.
ETF effect amplifies structural buying pressure
Ethereum enjoys a major competitive advantage: exclusive access to US spot ETFs among altcoins. This privileged position consolidates a 10 billion dollar market while Solana and XRP are still awaiting SEC approval.
Spot ETH ETFs show growing institutional appetite with 837 million dollars of net inflows since May 16. These flows seem modest compared to the 4 billion dollars average daily volume but show growing structural demand.
The available supply is contracting simultaneously. ETH deposits on exchanges reach a historic low at 16.33 million tokens. At the same time, 28.3% of the total supply is locked in staking, creating an artificial scarcity favorable to price increases.
This supply-demand dynamic explains the bullish volatility observed from May 7 to 14 with a 48% jump in ETH. The imbalance between holders and potential buyers intensifies, fueling expectations of a technical breakout.
Ethereum’s fundamentals point to a bullish scenario. Its technical dominance, constant ETF flow support, and shrinking supply compose an explosive cocktail. A break above 2,800 dollars could open the way to a rally towards levels not seen for months. Analyst Peter Brandt even mentions a possible “moon shot” toward 4,000 dollars.
Maximize your Cointribune experience with our “Read to Earn” program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Passionné par le Bitcoin, j’aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l’outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
