ETH retains most of its weekly gains as Bitcoin and altcoins face a broader sell-off.
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Key Takeaways:
Ethereum fundamentals are improving, with strong futures market support.
Layer-2 activity is rising sharply, indicating healthy ecosystem growth.
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Ether (ETH) has consistently struggled to break above the $2,700 resistance level since May 13. Still, it has outperformed the overall cryptocurrency market by 17% over the past month, a sign of relative strength in uncertain conditions.
This resilience comes as macroeconomic uncertainty persists, raising the possibility of short-term corrections. Meanwhile, ETH continues to trade 48% below its all-time high of $4,870 from October 2021, reflecting investor caution about long-term prospects.
A major concern across the crypto space is the declining use of decentralized applications (DApps), contributing to a slower recovery. The total value locked (TVL) in DeFi currently sits at $122 billion, still 43% lower than its December 2021 peak.
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Ethereum Retains TVL Dominance
Ethereum remains the leading smart contract platform, commanding 54.2% of the total DeFi TVL. Layer-2 networks such as Arbitrum and Optimism have added another 6.3% share, strengthening Ethereumโs hold on the market and limiting pressure from rival chains.
Altogether, Ethereum and its L2s control over four times the deposits held by their closest competitors, Solana and BNB Chain.
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Solanaโs Growth Raises Questions
Ethereum faced criticism during the memecoin craze in Q1 2025, particularly as Solanaโs on-chain activity surged following the launch of the Official Trump (TRUMP) token in January. However, Solanaโs growth hasnโt necessarily translated into gains for SOL holders.
Over the past 30 days, the top four Solana DApps โ Meteora, Pump, Jito, and Axiom โ generated $356.3 million in fee.
