**Ethereum Gains Momentum Amid Dencun Upgrade and DeFi Surge**

*May 16, 2025 | *

Ethereum (ETH) climbed 5.7% this week, reaching $3,120, as optimism surrounding the Dencun upgrade fuels market confidence. The upgrade, enhancing layer-2 scaling solutions, has reduced transaction costs and improved throughput, solidifying Ethereum’s position as a Web3 backbone. DeFi protocols like Uniswap and Aave reported a 20% surge in transaction volume, with total value locked (TVL) in Ethereum-based DeFi nearing $120 billion, per DeFiLlama.

Analysts attribute ETH’s rally to growing institutional adoption and developer activity, with over 3,000 dApps now live on the network. “Ethereum’s ecosystem is maturing, challenging Bitcoin’s dominance,” said market strategist Sarah Tran. However, concerns linger over gas fee volatility during peak network usage.

The $375 billion market cap asset faces competition from Solana and Cardano but retains a lead in smart contract innovation. With upcoming upgrades targeting sharding, Ethereum could see further gains in 2025. $ETH