Ethereum network growth, spot ETH ETF inflows and price gains lure new investors
Ethereum is experiencing significant price gains driven by increased network activity and robust inflows from spot ETFs, indicating a sustained rally. Despite trading within a range of $2,370 to $2,770 since May 10, Ethereum maintains a dominant 61% market share in total value locked (TVL), which recently grew by 6%. While competing blockchains like BNB Chain and Solana showed declines in deposits, Ethereum's layer-2 scaling solutions recorded impressive decentralized exchange (DEX) activity. Notably, Ether's short-term supply has dropped to a record low, further supporting positive price movements as demand rises. Spot ETH ETFs have amassed $837 million in net inflows since May 16, signaling increased institutional interest. Although challenges remain, including high base layer fees that impacted DEX volumes, analysts anticipate a potential breakout above the $2,800 level, suggesting that Ethereum remains a key player in the crypto market.
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