Since early June, Ethereum [ETH] has seen ecosystem surges. Weekly active addresses rose to 17.4 million, marking a new all-time high. This includes a sharp increase of 18.43% in layer 2 interactions, further amplified by a 7.55x multiplier, indicating a massive increase in adoption on scalability networks.
While cross-chain activity saw a slight decline, the large volume of core Ethereum usage reflects renewed interest from retail and institutional participants. #CryptoCharts101
Therefore, the sharp increase in activity could set the stage for a potential breakout driven by momentum.
The total value of Ethereum locked (TVL) rose to $86.63 billion, an increase of 1.28% in 24 hours, according to desafillama. This reflects sustained capital inflow into Ethereum-based Defi protocols despite recent volatility across the market.
Investors are clearly regaining confidence in the long-term viability of Defi, using Ethereum as the preferred settlement layer. As more assets flow into lending, staking, and liquidity protocols, demand for Ethereum on-chain strengthens.
Consequently, a growing TVL can provide vital support to Ethereum's price action and ecosystem growth in the short term.
At the moment, Ethereum recorded a negative net change of a 1.59% drop in balances on major exchanges. This suggests a trend of users withdrawing assets for self-custody or locking them in staking contracts.
Naturally, reduced exchange balances lessen immediate selling pressure and enhance bullish setups during momentum phases. If the trend holds, ETH could enter a supply compression scenario where even moderate demand spikes trigger pronounced price movements.
