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Ethereum Gains Momentum as Network Activity Soars

Ethereum network sees increased activity as Grayscale's ETHE fund stops outflows.
Ethereum Gains Momentum as Network Activity Soars

Ethereum's ecosystem is thriving with activity. The Grayscale Ethereum Trust (ETHE) saw its first day of no net outflows since becoming a spot ETF. This milestone corresponds with increased on-chain activity throughout Ethereum and its layer 2 networks.

ETHE has had issues, losing over 25% of its initial holding. However, things appear to be improving. Trading volumes on Ethereum-based decentralized exchanges are increasing. In July, Uniswap set a record for new layer 2 network addresses each month.

Layer 2 solutions are gaining popularity, with Base and Arbitrum having millions of weekly active users. On August 12th, Ethereum layer 2 solutions together completed 298 transactions per second — close to an all-time high. The total value of Ethereum layer 2 solutions is $37.7B. Ethereum's mainnet continues to dominate with $85B.

Analysts believe that the decrease in ETHE outflows might benefit ETH's price. They draw comparisons with Bitcoin's price volatility following spot ETF approvals. While it is too early to determine long-term effects, the increased Ethereum network activity indicates renewed investor interest. The cryptocurrency community is keenly watching how Ethereum's environment evolves.

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