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"ETH Second Wind: From the Rise of DeFi to ETF Fever."
Ethereum (ETH) is once again in the spotlight in the global crypto world. After being lagged behind Bitcoin's rally at the start of the year, Ethereum is now showing signs of a much stronger recovery. Two key factors driving this momentum are the resurgence of the DeFi sector and massive inflows into spot Ethereum ETFs. The combination of these two has given Ethereum a new lease of life, or what could be called a second wind, in the 2025 crypto market cycle.
Ethereum ETF: A New Magnet for Institutional Investors
One of the biggest drivers of Ethereum's rally this year has been the influx of institutional investors through ETFs. In July 2025, the Ethereum spot ETF recorded a record inflow of $5.41 billion in just one month. This figure was even greater than the total accumulated since the ETF's launch several months earlier.
Furthermore, Ethereum also recorded a streak of 19 consecutive days of positive inflows, totaling $5.38 billion. This means that approximately 4.7% of the total circulating supply of ETH is now locked in ETF instruments. This surge in demand directly reduces the available supply of ETH in the market, adding to the bullish pressure.
Interestingly, in the past five days, the Ethereum ETF recorded net inflows worth $3.4 billion, surpassing the Bitcoin ETF, which only received around $966 million over the same period. This fact indicates a shift in investor interest, with Ethereum increasingly being viewed as a strategic asset with significant growth potential.
Activity Spikes on the Ethereum Network
In addition to institutional support, Ethereum has also shown significant improvement in its fundamentals. According to on-chain data, the average daily transaction volume for Ethereum in July 2025 reached 1.48 million, a 3.2% increase compared to the previous day and a 37.7% jump from the same period last year. In the first quarter of 2025, Ethereum even recorded an average of 1.65 million transactions per day, with a record high of 1.92 million transactions in a single day. This activity extends beyond asset transfers to include DeFi, NFTs, and smart contracts. Furthermore, approximately 62% of all transactions on the Ethereum network now originate from smart contracts, a clear indication that ETH's utility is no longer just as a means of payment, but as the foundation of the Web3 ecosystem.
The Rise of DeFi: Driving the Second Wind
DeFi, or decentralized finance, has returned to the spotlight after experiencing a period of stagnation in the previous year. Currently, the total value locked (TVL) across various Ethereum-based DeFi protocols is starting to show a recovery trend. This surge coincides with the increasing adoption of Layer-2 platforms, such as Arbitrum, Optimism, and Base, which help reduce transaction costs while increasing network efficiency. Furthermore, integration with traditional sectors is also increasingly visible. Several major banks in Europe and Asia are beginning to explore Ethereum-based protocols for cross-border settlement services. This strengthens Ethereum's position as a global digital financial infrastructure, not just an investment asset.
Future Outlook: Is ETH Heading for a New Record?
Several factors that could strengthen this trend going forward include:
Technology Upgrades: The "Pectra" update, scheduled for release later this year, is expected to improve staking efficiency and user experience. Layer-2 Growth: The adoption of scalability solutions is making Ethereum transaction fees increasingly competitive. Institutionalization: More and more companies and financial institutions are incorporating ETH into their portfolios.
Conclusion
Ethereum is currently at a crucial crossroads. On the one hand, the rise of the DeFi sector and on-chain activity are providing a strong foundation for the ecosystem. On the other hand, the surge in demand through ETFs demonstrates that ETH is now being taken seriously by global investors. This second wave of Ethereum has the potential to be more stable and sustainable than the previous wave, driven not only by speculation but also by increasingly solid fundamentals. If this trend continues, Ethereum will not only rival Bitcoin as a leading digital asset but could also solidify its position as the "financial infrastructure of the internet" in the Web3 era.
$ETH
#ETH #ETHTreasuryStrategy #MarketTurbulence
Ethereum ETF: A New Magnet for Institutional Investors
One of the biggest drivers of Ethereum's rally this year has been the influx of institutional investors through ETFs. In July 2025, the Ethereum spot ETF recorded a record inflow of $5.41 billion in just one month. This figure was even greater than the total accumulated since the ETF's launch several months earlier.
Furthermore, Ethereum also recorded a streak of 19 consecutive days of positive inflows, totaling $5.38 billion. This means that approximately 4.7% of the total circulating supply of ETH is now locked in ETF instruments. This surge in demand directly reduces the available supply of ETH in the market, adding to the bullish pressure.
Interestingly, in the past five days, the Ethereum ETF recorded net inflows worth $3.4 billion, surpassing the Bitcoin ETF, which only received around $966 million over the same period. This fact indicates a shift in investor interest, with Ethereum increasingly being viewed as a strategic asset with significant growth potential.
Activity Spikes on the Ethereum Network
In addition to institutional support, Ethereum has also shown significant improvement in its fundamentals. According to on-chain data, the average daily transaction volume for Ethereum in July 2025 reached 1.48 million, a 3.2% increase compared to the previous day and a 37.7% jump from the same period last year. In the first quarter of 2025, Ethereum even recorded an average of 1.65 million transactions per day, with a record high of 1.92 million transactions in a single day. This activity extends beyond asset transfers to include DeFi, NFTs, and smart contracts. Furthermore, approximately 62% of all transactions on the Ethereum network now originate from smart contracts, a clear indication that ETH's utility is no longer just as a means of payment, but as the foundation of the Web3 ecosystem.
The Rise of DeFi: Driving the Second Wind
DeFi, or decentralized finance, has returned to the spotlight after experiencing a period of stagnation in the previous year. Currently, the total value locked (TVL) across various Ethereum-based DeFi protocols is starting to show a recovery trend. This surge coincides with the increasing adoption of Layer-2 platforms, such as Arbitrum, Optimism, and Base, which help reduce transaction costs while increasing network efficiency. Furthermore, integration with traditional sectors is also increasingly visible. Several major banks in Europe and Asia are beginning to explore Ethereum-based protocols for cross-border settlement services. This strengthens Ethereum's position as a global digital financial infrastructure, not just an investment asset.
Future Outlook: Is ETH Heading for a New Record?
Several factors that could strengthen this trend going forward include:
Technology Upgrades: The "Pectra" update, scheduled for release later this year, is expected to improve staking efficiency and user experience. Layer-2 Growth: The adoption of scalability solutions is making Ethereum transaction fees increasingly competitive. Institutionalization: More and more companies and financial institutions are incorporating ETH into their portfolios.
Conclusion
Ethereum is currently at a crucial crossroads. On the one hand, the rise of the DeFi sector and on-chain activity are providing a strong foundation for the ecosystem. On the other hand, the surge in demand through ETFs demonstrates that ETH is now being taken seriously by global investors. This second wave of Ethereum has the potential to be more stable and sustainable than the previous wave, driven not only by speculation but also by increasingly solid fundamentals. If this trend continues, Ethereum will not only rival Bitcoin as a leading digital asset but could also solidify its position as the "financial infrastructure of the internet" in the Web3 era.
$ETH
#ETH #ETHTreasuryStrategy #MarketTurbulence
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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