Ethereum’s price may look tepid on the surface, but the chain’s on-chain gravity and growing institutional activity tell a very different story. Despite headline price stagnation, Ethereum’s ecosystem remains the dominant home for decentralized finance. DeFiLlama data shows the Ethereum ecosystem — including its Layer 2s — accounts for roughly 68% of total DeFi TVL. Even after the 2022 sell-off, when Ethereum’s share briefly fell toward 45%, the network recovered through 2024 and into 2025. Strip out competing L2 ecosystems and that dominance only strengthens, pushing Ethereum’s share above 70%. Institutional moves underline that confidence. Tom Lee’s Bitmine staked 74,880 ETH (about $219 million), while SharpLink Gaming redeemed 35,627 ETH — signals that large players are actively positioning around Ethereum rather than abandoning it. So why does price action feel disjointed from these fundamentals? The answer appears to be derivatives. Futures and leveraged trading have exploded in 2025, with Binance alone recording more than $6.7 trillion in ETH futures volume — nearly double last year. Other venues such as OKX, Bybit and Bitget mirrored the surge, confirming a market-wide rise in speculative activity. That surge has produced a stark imbalance. Crypto analyst Darkfost noted on X that for every $1 in spot ETH, roughly $5 flows into futures. Heavy leverage at that scale can amplify short-term moves and produce the “chaotic” price behavior many traders see, even as on-chain fundamentals remain intact. Bottom line: Ethereum’s network-level strength — dominant TVL, renewed post-2022 recovery, and sizable institutional stakes — contrasts with price noise driven by unprecedented derivatives activity. Watch on-chain metrics and futures flows in tandem: one reflects structural health, the other short-term market mechanics. Disclaimer: This content is informational and not investment advice. Trading cryptocurrencies is high-risk; do your own research before making decisions. © 2025 AMBCrypto Read more AI-generated news on: undefined/news

#ETH