Coin overview
EIGEN
Ended--
Last price (USDT)
171.76K
24h total (USDT)
739.77K
Total vol (USDT)
2024-04-30 09:00:00 ~ 2024-10-01 03:30:00
Trading time (UTC+0)
2024-10-01 09:00:00
Delivery time (UTC+0)
Total supply1.74B
Resources
Introduction
EigenLayer is a protocol built on Ethereum that introduces re-staking, allowing users who have staked $ETH to join the EigenLayer smart contract to re-stake their $ETH and extend cryptoeconomic security to other applications on the network. As a platform, EigenLayer, on one hand, raises assets from LSD asset holders, and on the other hand, uses the raised LSD assets as collateral to provide middleware, side chains, and rollups with AVS (Active Verification Service) needs. The convenient and low-cost AVS service itself provides demand matching services between LSD providers and AVS demanders, while a specialized pledge service provider is responsible for specific pledge security services. EIGEN total supply: 1.67 billion tokens
Ronin OP Stack receives $5-7 million in grants for adopting OP Stack
On September 11th, Ronin stated in a blog post that by integrating OPStack, the project will receive a milestone grant of $5-7 million from Optimism Foundation, Eigen Labs, Boundless Foundation in the form of tokens such as OP, ZKC, EIGEN. Earlier last week, Ronin governance validators officially voted to adopt Optimism's OP Stack as the Ethereum layer 2 scaling solution.
Ethereum core developers are earning less than half market rates, report shows
A new compensation report from the Protocol Guild (PG) shows that most Ethereum core developers work for less than half of what they could earn elsewhere. The survey, which gathered responses from 111 of the group’s 190 members across 11 organizations, paints the clearest picture yet of how underpaid the builders of Ethereum’s core infrastructure remain. According to the findings, the typical Ethereum core contributor earns an average of $157,939, which is around 60% below the average $359,074 market compensation offered by competing firms. Notably, these developers are also provided with little or no equity or token incentives, while the median competing firm offers around 7% equity grant. The report furthered that nearly 40% of respondents received final job offers from other companies within the past year, highlighting how competitive the talent market has become. However, many of these core contributors continue to turn down higher-paying roles to remain focused on maintaining the Ethereum network. Speaking about these numbers, Ethereum developer Phil Ngo described core contributors as “selfless people” working under financial strain because they believe in building a financial system not ruled by traditional gatekeepers. According to him: “Most I know are foregoing the money because they believe in somETHing. That something is a world not ruled by the TradFi status quo, that nobody alone, nor a cartelized group of people can change the system.” Risk for Ethereum However, the report warned that this underpayment poses long-term risks to the blockchain network. According to the report, Ethereum’s technical roadmap depends on retaining top-tier talent, but the lack of competitive compensation threatens both retention and execution. Several industry experts shared this view, pointing out that Ethereum is the second-largest blockchain network and is playing a significant role in the evolution of the financial industry. Considering this significant role, they noted that the developers should be well compensated to avoid jeopardizing Ethereum’s “credible neutrality.” Ngo said: “I wholeheartedly agree that it is unacceptable to pay half the market rate of an equivalent engineer to literally keep a $400 billion network alive and decentralized.” Legal expert Gabriel Shapiro agreed, arguing that developers should share in the upside of the network they secure. As a result, he suggested paying contributors partly in locked ETH, while stressing that: “Relying on the next Eigenlayer to make a token donation to Protocol Guild is not a strategy.” The post Ethereum core developers are earning less than half market rates, report shows appeared first on CryptoSlate.
[Long Tweet] Interpreting the EigenCloud Architecture: Attempting to Achieve a Verifiable Combination of Cryptography and AI?
Chainfeeds Guide: Eigen currently provides more user-friendly development infrastructure for AI agents developers, with development scenarios including AI+DeFi, AI+DAO, AI+DeSci, and AI+GAME. Source: Author: Blue Fox Notes Opinion: Blue Fox Notes: First, let's take a look at the architecture of Eigen. The core of the EigenCloud architecture is that it allows developers to execute business logic (computation in any container) off-chain, while returning the results on-chain for verification. It supports various containers, languages, and hardware, which means it gives developers greater freedom and compatibility. Its tech stack includes the restaking protocol (underlying shared security), core primitives (EigenDA for data availability service, EigenVerify for verification and dispute resolution layer, EigenCompute for computation layer, etc.), and ecosystem services (ZK, Oracle, Inference, etc.). From this architecture, EigenCloud attempts to solve some of the problems that traditional dAPPs cannot run on-chain, such as AI Agents (because it is difficult to support complex hardware and programs). We have previously mentioned the viewpoint that AI and Crypto are a perfect match because they need each other. AI has trust issues and autonomy issues; AI needs to ensure verifiable and correct operation, and needs to have its own wallet, etc. These are what Crypto can provide. Crypto lacks enough killer applications; currently, Crypto applications are mainly DeFi and stablecoins, while other applications, including games and AI agents, have not developed, but AI will reconstruct almost all applications in the future. If AI can run on Crypto, then this will be the greatest hope for Crypto after DeFi and stablecoins. The architecture of EigenCloud enables the integration of AI Agents and Crypto to be feasible. For example, EigenCloud allows AI agents to be embedded into smart contracts, becoming autonomous and verifiable entities; AI agents can run on EigenCloud, with staking security support, EigenDA data availability support, EigenVerify verification support, EigenCompute computation support, etc. The results are put on-chain, and if there are errors, challenges can be made, and the verification protocol ensures the correctness of the results. In short, the Eigen ecosystem supports verification of the entire stack (computation, data, inference, tools, etc.), and supports the operation of AI agents (model + orchestrator + memory + goals + tool calls, etc.). Source of content
Ethereum’s Rising Validator Queue and Restaking Activity Could Signal a Growing Supply Squeeze
The Ethereum validator queue has surged to a two-year peak of 860k ETH, signaling increased staking demand and a potential supply squeeze. Combined with ~36M ETH already staked and rising restaking activity, this dynamic supports structural bullish pressure on ETH over the medium term. 860k ETH queued — a two-year high Total Value Staked (TVS) near 36M ETH, down from a 36.23M peak in early August. Queue represents roughly $3.7B or ~2.9% of supply; combined locked/queued ETH could exceed 38M (32%+ of supply). Ethereum validator queue climbs to 860k ETH, tightening supply and boosting staking flows. Read analysis on ETH staking impact and next steps for investors. What is the Ethereum validator queue and why does it matter? The Ethereum validator queue is the backlog of ETH waiting to become active validators on the Beacon Chain. A large queue means substantial ETH is effectively locked from liquid markets, increasing supply pressure and potentially supporting price if demand persists. How much ETH is currently queued and staked? Validator queue data shows the entry queue spiked to 860k ETH on 2 September, roughly $3.7 billion in queued capital. Ethereum’s TVS reached a high of 36.23 million ETH in early August and sits near 36 million today after ~230k ETH unstaked in under a month. Source: Validatorqueue How do staking flows and restaking affect ETH supply? Staking removes ETH from liquid markets; restaking protocols layer additional yield on top of staked ETH. For example, EigenLayer’s TVL has reached record levels, showing capital is increasingly committed to multilevel lock-ups and yielding strategies. When restaking ramps, the effective locked supply rises beyond native staking figures. That amplifies potential supply shocks if demand holds or increases. Source: DeFiLlama When did staking flows correlate with price action? Recent data shows TVS fell ~145k ETH across two weeks while ETH’s price pulled back about 12% from the $4.9k peak. Short-term unstaking coincided with price weakness, but the larger trend of rising queued ETH suggests renewed medium-term accumulation into staking. Quick comparison: staked vs queued ETH Metric Value Percent of Supply Total Value Staked (TVS) ~36.0M ETH ~29.45% Validator Queue 860k ETH ~2.9% Potential locked (staked + queued) ~38.0M ETH ~32% Frequently Asked Questions How does the validator queue affect ETH liquidity? A large validator queue removes ETH from liquid exchanges and wallets while it waits to activate. That reduces available circulating supply and can amplify price moves if demand remains steady or rises. Can restaking increase supply pressure further? Yes. Restaking protocols allow staked ETH to be rehypothecated for additional yield, effectively increasing the amount of ETH that is functionally locked and reducing freely tradable supply. Key Takeaways Validator queue at 860k ETH: Represents meaningful queued capital (~$3.7B) that tightens effective supply. TVS near 36M ETH: Even after recent unstaking, staking remains elevated and supportive for long-term demand. Restaking adds leverage: Protocols like EigenLayer increase functional lock-up, intensifying potential supply shocks. Conclusion Ethereum’s staking dynamics — a two-year high validator queue, sustained TVS, and growing restaking activity — point to structural supply compression beneath the surface. Monitor queue trends, restaking TVL, and on-chain flows to assess whether this translates into durable price support. COINOTAG will continue tracking these metrics and publishing updates. In Case You Missed It: Ether Exchange Reserves Fall 38% Since 2022 as Spot ETFs and Corporate Treasuries Appear to Draw Supply
Institutional Adoption of Liquid Restaking: A New Paradigm in Crypto Treasury Management
The institutional crypto landscape is undergoing a seismic shift as liquid restaking protocols redefine treasury management. By combining yield optimization with network security, these innovations are attracting pension funds, asset managers, and corporate treasuries to decentralized finance (DeFi) ecosystems. This article examines how liquid restaking—particularly through Ethereum-based protocols like EigenLayer and Babylon—has emerged as a strategic tool for institutional capital, while addressing the symbiotic relationship between capital efficiency and blockchain security. Strategic Yield Optimization: Liquidity Meets Compounding Rewards Institutional investors are increasingly deploying liquid staking tokens (LSTs) to maximize returns on crypto assets. Unlike traditional staking, which locks assets for extended periods, liquid restaking protocols issue tradeable tokens (e.g., stETH, rETH) that represent staked assets. These tokens can be lent, traded, or used as collateral, enabling institutions to compound yields across multiple DeFi applications. According to a report by The Block, Ethereum’s liquid staking TVL surged to $24 billion by August 2025, driven by regulatory clarity and institutional demand. Platforms like Lido and Rocket Pool now manage $43.7 billion in assets, with staking yields averaging 3–6%. For example, BitMine Immersion , a corporate treasury participant, generated $87 million annually by staking 1.72 million ETH through liquid derivatives. This flexibility allows institutions to balance liquidity needs with yield generation, a critical advantage in volatile markets. EigenLayer’s Actively Validated Services (AVSs) further amplify this strategy. By restaking staked ETH to secure additional protocols, EigenLayer reported $7 billion in TVL by April 2025, with over 50 networks leveraging its security layer. This compounding mechanism enables institutions to diversify risk while earning layered rewards, effectively transforming staked assets into multi-utility capital. Network Security Synergies: Capital Efficiency and Decentralization Liquid restaking not only benefits institutional portfolios but also strengthens blockchain networks. Protocols like Babylon and EigenLayer are pioneering cross-chain security models, where staked assets from one chain (e.g., Ethereum or Bitcoin) are used to secure others. This “mesh security” approach reduces reliance on centralized validators and enhances the resilience of interconnected blockchains. Babylon’s Genesis chain, launched in April 2025, exemplifies this synergy. By enabling Bitcoin staking without wrapping BTC, the protocol introduced native slashing mechanisms to secure PoS chains. As of August 2025, Babylon’s TVL exceeded $2 billion, with Bitcoin staking entering the top 10 staking assets globally. This innovation unlocks Bitcoin’s $1 trillion market cap for security purposes, addressing a long-standing limitation of the asset while creating new revenue streams for holders. EigenLayer’s AVS model similarly enhances Ethereum’s security footprint. By allowing staked ETH to validate services like data availability layers or cross-chain bridges, EigenLayer’s TVL surpassed $15 billion. This expansion of security guarantees not only protects participating protocols but also increases the economic value of staked assets, creating a virtuous cycle of capital deployment and network robustness. Regulatory Clarity: A Catalyst for Institutional Adoption The U.S. Securities and Exchange Commission’s (SEC) August 2025 guidance marked a turning point for liquid restaking. By clarifying that administrative staking activities fall outside securities laws, the SEC provided a legal framework for institutions to engage with LSTs without fear of regulatory overreach. This clarity has spurred adoption among pension funds and asset managers, which now allocate $3 billion in corporate treasuries to Ethereum staking. Regulatory tailwinds are further amplified by the CLARITY and GENIUS Acts, which reclassify Ethereum as a utility token and enable SEC-compliant staking solutions. These developments align with broader macroeconomic trends, including dovish Federal Reserve policy and Ethereum’s post-Pectra upgrade gas fee reductions, making crypto treasuries increasingly attractive for yield-seeking institutions. Risks and Challenges: Liquidity and Market Stress Despite its promise, liquid restaking is not without risks. During Ethereum’s July 2025 deleveraging event, LSTs temporarily de-pegged from ETH, exposing liquidity vulnerabilities. While protocols like Lido and EigenLayer have robust mechanisms to mitigate such risks, institutions must remain vigilant about market stress scenarios. Additionally, the complexity of cross-chain restaking introduces operational risks, requiring sophisticated risk management frameworks. Conclusion: A New Era for Institutional Crypto Strategies Liquid restaking represents a paradigm shift in crypto treasury management, offering institutions a unique blend of yield optimization, liquidity, and network security. As EigenLayer, Babylon, and Ethereum-based protocols continue to innovate, the synergy between capital efficiency and blockchain security will likely drive further institutional adoption. However, success hinges on navigating regulatory landscapes and mitigating liquidity risks—a challenge that, if managed effectively, could cement liquid restaking as a cornerstone of modern institutional portfolios. **Source:[1] Ethereum Treasuries: The Institutional Shift to Yield-Optimized Digital Reserves [2] Restaking from First Principles [3] Industry leaders cheer liquid staking's SEC green light [4] Validator withdrawals fuel $30 billion migration into Ethereum liquid restaking protocols
Kite Secures $18M Series A to Power Agentic Web Infrastructure
Previously known as Zettablock, Kite introduces a novel architecture designed specifically for the agentic web, drawing on years of expertise in distributed infrastructure systems. Any PayPal or Shopify retailer may now opt in via the Kite Agent App Store and make themselves discoverable by AI shopping agents. Agent Passport, a verifiable identity with functional safeguards, and the Agent App Store, where agents may find and purchase services including APIs, data, and commerce tools, are the two main parts of Kite AIR. Today, Kite , a firm building the agentic web’s fundamental trust infrastructure, revealed that it had secured $18 million in Series A investment, increasing its total cumulative funding to $33 million. General Catalyst and PayPal Ventures led the round. Samsung Next, SBI US Gateway Fund, Vertex Ventures, Hashed, HashKey Capital, Dispersion Capital, Alumni Ventures, Avalanche Foundation, GSR Markets, LayerZero, Animoca Brands, Essence VC, Alchemy, and 8VC are among the other investors in the firm. Previously known as Zettablock, Kite introduces a novel architecture designed specifically for the agentic web, drawing on years of expertise in distributed infrastructure systems. Large-scale, real-time data infrastructures supporting decentralized networks including Chainlink, EigenLayer, Sui, and Polygon were previously built by the team. Kite is designed to cater to a new kind of user—agents—by building directly on that base. A groundbreaking technology that allows autonomous agents to authenticate, transact, and function autonomously in real-world settings, Kite Agent Identity Resolution, or “Kite AIR,” was recently introduced by the business. The system uses a blockchain designed for autonomous agents to provide programmable identification, native stablecoin payment, and policy enforcement. Agent Passport, a verifiable identity with functional safeguards, and the Agent App Store, where agents may find and purchase services including APIs, data, and commerce tools, are the two main parts of Kite AIR. Thanks to open interfaces with well-known e-commerce platforms like PayPal and Shopify, it is operational as of right now. Chi Zhang, Co-Founder and CEO of Kite stated: “From the beginning, we believed autonomous agents would be the dominant UI for the future digital economies. To function, they need structured and verifiable data, That was our first step. Next come identity, trust, and programmable payments. Today’s human-centric systems are too rigid and brittle for swarms of agents conducting micro-transactions at machine speed. Kite AIR solves that”. Any PayPal or Shopify retailer may now opt in via the Kite Agent App Store and make themselves discoverable by AI shopping agents by leveraging publicly accessible APIs. With the use of stablecoins and programmable permissions, purchases are settled on-chain with complete traceability. Additionally, Kite is continuously developing more interfaces across data, financial, and commerce platforms. Marc Bhargava, Managing Director at General Catalyst stated: “Kite is doing the foundational work we believe will define how agents operate tomorrow. They are building the rails for the machine-to-machine economy.” Alan Du, Partner at PayPal Ventures stated: “Kite is the first real infrastructure that is purpose-built for the agentic economy. Payment has proven to be a challenging technical gap. Solutions like virtual cards provide only short-term workarounds. Latency, fees, and chargebacks further complicate things. Kite bridges this critical gap by providing stablecoin-based, millisecond-level settlement with low transaction fees and no chargeback fraud risks. This enables new economic models such as agent-to-agent metered billing, micro-subscription, and high frequency trading.” Leaders in the field who are developing the future of agentic commerce and programmable payments share that vision. Steve Everett, Head of Global Market Development, PayPal Crypto and Digital Assets stated: “Kite’s foundational trust infrastructure together with the benefits of a well-regulated stablecoin for agentic payments will create unprecedented opportunities. Enabling simultaneous, atomic settlement, governed by smart contracts that allow for real-time tracking and auditing across highly performant blockchain protocols will be the killer combination that delivers the promises of programmable payments in the exciting frontier of agentic commerce. This opens the door for a truly global, automated economy where people, enterprise and machine can interact with ease and trust.” The founding team of Kite has unparalleled experience in applied AI, large-scale data infrastructure, and blockchain protocol engineering—the three pillars needed to drive the agent economy. Chi Zhang, the CEO, managed Databricks’ key data products and has a PhD in AI from UC Berkeley. CTO Scott Shi was a founding developer on Salesforce Einstein AI and developed real-time AI infrastructure at Uber. Over 30 patents and publications at prestigious conferences like ICML and NeurIPS are held by Kite’s team. Engineers and researchers from Uber, Databricks, Salesforce, and NEAR are part of the larger team; they have academic backgrounds from MIT, Harvard, Oxford, UC Berkeley, and the University of Tokyo. Kite is building the agentic internet’s core infrastructure. Its technology gives native access to stablecoin payments, customizable permissions, and cryptographic identity to autonomous agents. Kite is building the trust transaction layer for the agentic economy by allowing agents to behave autonomously, coordinate, and transact. Global investment and transformation firm General Catalyst collaborates with the most driven businesspeople worldwide to promote applied AI and resilience. From seed to growth stage and beyond, we work with long-term-minded innovators who disrupt the established quo. We have helped 800+ startups expand, including Airbnb, Anduril, Applied Intuition, Commure, Glean, Guild, Gusto, Helsing, Hubspot, Kayak, Livongo, Mistral, Ramp, Samsara, Snap, Stripe, Sword, and Zepto. We have offices in San Francisco, New York City, Boston, Berlin, Bangalore, and London.
Thiel-backed ETHZilla to deploy $100 million in ETH with liquid restaking protocol EtherFi
ETHZilla Corporation, the Ethereum digital asset treasury (DAT) backed by Peter Thiel, said on Tuesday it plans to deploy $100 million worth of ETH with liquid restaking protocol EtherFi in order to pursue higher yield returns. "By deploying $100 million into liquid restaking, we're reinforcing Ethereum's security while unlocking incremental yield opportunities to enhance returns on our treasury holdings," ETHZilla Executive Chairman McAndrew Rudisill said in a statement . "Partnering with EtherFi marks a pivotal step in our engagement with DeFi, aligning innovation with prudent asset stewardship." Ethereum liquid restaking protocols have recently experienced significant growth, with total value locked (TVL) across platforms hitting $30 billion . This surge comes as native ETH staking has seen increased withdrawal activity, with validators exiting the traditional staking mechanism in favor of other opportunities. EtherFi enables users to access restaking yields via EigenLayer. When ranked by TVL, EtherFi is the top liquid staking protocol ahead of Eigenpie. ETHZilla's supply of Ethereum recently rose to over 100,000 tokens. The DAT trades on the Nasdaq under the ticker. Last month, ETHZilla closed a $425 million private placement, which had over 60 participants , including Electric Capital, Polychain Capital, GSR, Konstantin Lomashuk (co-founder of Lido and p2p.org), and Sreeram Kannan (founder of Eigenlayer). ETHZilla, previously 180 Life Sciences Corp., saw its shares jump more than 90% last month after it was announced Thiel had become a shareholder. Tom Lee's BitMine and Joe Lubin's SharpLink rank one and two among DATs dedicated to buying Ethereum, according to data from SER. BitMine holds approximately 1.8 million ETH, and SharpLink holds 837,000 ETH. ETHZ traded down 1% to $2.78 per share at publication time, giving the company a market capitalization of around $480 million.
The Rise of Ethereum Treasuries: How Institutional Adoption is Reshaping Debt Markets
The institutionalization of Ethereum-backed treasury instruments is no longer a speculative trend—it is a seismic shift in how sovereign and corporate debt markets operate. In 2025, Ethereum has emerged as a cornerstone of institutional capital allocation, offering a unique blend of yield generation, regulatory clarity, and programmable infrastructure that challenges traditional fixed-income paradigms. This transformation is driven by a confluence of factors: the U.S. Securities and Exchange Commission's (SEC) reclassification of Ethereum as a utility token, the CLARITY Act's removal of regulatory barriers, and the explosive growth of Ethereum staking and tokenized real-world assets (RWAs). Institutional Adoption: From Speculation to Strategy Institutional investors have poured over $2.44 billion into Ethereum-backed instruments in Q2 2025 alone, with investment advisors leading the charge. These advisors now control $1.35 billion in Ethereum ETF exposure, equivalent to 539,757 ETH, while hedge funds and Wall Street giants like Goldman Sachs ($721.8 million in ETH ETFs) and Jane Street Group ($190.4 million) have followed suit. This surge reflects a strategic pivot toward Ethereum as a yield-generating asset, particularly in a low-interest-rate environment where traditional treasuries offer diminishing returns. Corporate treasuries are also redefining their reserve strategies. Bitmine Immersion Technologies, for instance, holds 1.713 million ETH ($7.5 billion) under its “alchemy of 5%” strategy, aiming to acquire 5% of Ethereum's total supply. Meanwhile, SharpLink Gaming has staked 728,804 ETH, generating annualized yields of 3–14%—a stark contrast to Bitcoin's zero-yield model. These moves underscore Ethereum's appeal as a programmable, deflationary asset that combines capital appreciation with active income generation. Yield Innovation: Staking and Tokenized Assets Ethereum's proof-of-stake model and liquid staking derivatives (LSDs) have unlocked unprecedented yield opportunities. Protocols like Lido Finance and EigenLayer now manage $43.7 billion in staked and restaked ETH, with EigenLayer securing $17 billion in total value locked (TVL). This infrastructure allows institutions to earn staking rewards while retaining liquidity—a dual benefit absent in traditional debt markets. Tokenized RWAs further amplify Ethereum's utility. The network now accounts for 72% of the $7.5 billion in tokenized RWAs, including $5.3 billion in U.S. Treasury bonds. Layer 2 solutions like Arbitrum and Optimism have expanded Ethereum's market share to 85% in this space, enabling faster settlements and programmable smart contracts. For example, BlackRock's BUIDL fund, backed by tokenized Treasuries, has surpassed $2.4 billion in value, while Apollo's ACRED private credit fund and VanEck's VBILL Treasury illustrate Ethereum's role in institutional-grade alternative assets. Risk Diversification: A New Asset Class for Institutional Portfolios Ethereum's deflationary dynamics—driven by EIP-1559 burns and staking—create a unique scarcity model. Annual supply contraction of 0.5% contrasts sharply with Bitcoin's fixed supply, offering a valuation floor that appeals to risk-averse investors. On-chain data reveals that mega whale ETH holders increased their positions by 9.31% since October 2024, while exchange-held ETH balances hit a nine-year low of 14.88 million tokens. These metrics signal a shift toward long-term value accumulation, historically correlated with bullish price movements. For institutional investors, Ethereum-backed treasuries provide diversification beyond traditional equities and bonds. The Federal Reserve's dovish policy has made staking returns more attractive than fixed-income assets, with Ethereum ETFs attracting $1.83 billion in net inflows in August 2025—far outpacing Bitcoin ETFs. This trend is reinforced by Ethereum's role in tokenized institutional alternative funds (IAFs), which now hold $1.74 billion, with Ethereum accounting for $1 billion of that value. Regulatory Clarity and Future Implications The SEC's July 2025 approval of in-kind creation and redemption mechanisms for Ethereum ETFs marked a regulatory inflection point . This innovation reduced transaction costs and enhanced liquidity, enabling institutions to deploy capital more efficiently. Looking ahead, the SEC's October 2025 rulings on staking integration and custody standards could further accelerate adoption, potentially pushing Ethereum ETF assets under management (AUM) to $27.66 billion. For investors, the implications are clear: Ethereum-backed treasuries are reshaping debt markets by offering higher yields, programmable infrastructure, and regulatory compatibility. However, risks remain. While Ethereum's deflationary model and institutional-grade security mitigate some volatility, regulatory uncertainty and market liquidity constraints persist. Investment Advice: Balancing Opportunity and Caution Incorporating Ethereum-backed instruments into institutional portfolios requires a nuanced approach. For risk-tolerant investors, staking and tokenized RWAs offer compelling yield generation, particularly in a low-interest-rate environment. However, diversification is key—allocating a portion of treasury reserves to Ethereum while maintaining exposure to traditional assets can hedge against market volatility. For corporations, Ethereum's programmable smart contracts enable innovative financial models, such as daily dividend distributions and tokenized private credit. Companies like Bitmine and SharpLink demonstrate how strategic ETH accumulation can enhance capital efficiency and shareholder value. In conclusion, Ethereum's rise as a treasury asset is not merely a technological shift—it is a redefinition of how institutions approach yield, risk, and capital deployment. As regulatory clarity and market infrastructure continue to evolve, Ethereum-backed instruments are poised to become a foundational component of the next-generation financial system. For investors, the question is no longer whether to consider Ethereum, but how to integrate it effectively into a diversified, yield-focused portfolio.
Myriad Surpasses $10M Trading Volume in Prediction Markets
This milestone reflects the quick adoption of Myriad as well as the company’s aim to develop prediction markets as a fundamental segment within the DeFi industry. Since its introduction, Myriad has been able to support more than 5.4 million forecasts, its browser extension has been installed more than 60,000 times, and it has swiftly moved into the top tier of Web3 trading apps. Myriad , a Web3 prediction and trading protocol, made the announcement today that it has crossed $10 million in USDC trading volume since its introduction. Additionally, it has onboarded more than 511,000 users. This milestone reflects the quick adoption of Myriad as well as the company’s aim to develop prediction markets as a fundamental segment within the decentralized finance industry. The beginnings of Myriad may be traced back to two pioneering media companies in the Web3 landscape: Decrypt and Rug Radio. The mentality of the platform has been formed by this tradition, which has also contributed to the early momentum. The objective of Myriad is to make information itself a marketable asset class. Since its introduction, Myriad has been able to support more than 5.4 million forecasts, its browser extension has been installed more than 60,000 times, and it has swiftly moved into the top tier of Web3 trading apps. All of this has been accomplished while remaining faithful to its purpose. Loxley Fernandes, co-founder and CEO of Myriad stated: “Financial markets have always been about speculation, but Myriad is turning speculation into a product. We’re showing that trading ideas and forecasts is not only possible, it’s the next frontier for capital markets. Myriad is building the rails for prediction markets to evolve beyond a niche crypto product and become an entirely new segment of DeFi.” It is not going unnoticed that this burgeoning industry has the potential to see development. According to Thomas Peterffy, the creator of Interactive Brokers, prediction markets have the potential to overtake the stock market within the next 15 years. He cites the unique capacity of prediction markets to price real-world expectations and consensus as the reason for his forecast. According to Myriad’s future plans, the company intends to position itself as both a consumer platform and a business-to-business protocol for various prediction applications. It has been implemented on Abstract and Linea, and there are plans to integrate it further with EigenLayer and EigenCloud in the future. An additional component of its plan is the implementation of blended oracles, as well as a framework for ERC-PRED, a new asset class that is intended for prediction markets. Through a combination of great early traction, reputation driven by the media, and a growth strategy that prioritizes compliance, Myriad is laying the groundwork to establish prediction markets as a cornerstone of global decentralized finance. A Web3 prediction and trading protocol, Myriad was developed with the intention of facilitating markets in which users may engage in trading based on information, predictions, and consensus. Through the use of Decrypt and Rug Radio, it mixes retail adoption with enterprise-grade infrastructure in order to develop a protocol for prediction markets that can be used across a variety of businesses. Its plan involves the extension of several chains, the integration of sophisticated oracles, and the harmonization of regulatory standards in the United States.
The Rise of Ethereum Treasuries: How Institutional Adoption is Reshaping Debt Markets
The institutionalization of Ethereum-backed treasury instruments is no longer a speculative trend—it is a seismic shift in how sovereign and corporate debt markets operate. In 2025, Ethereum has emerged as a cornerstone of institutional capital allocation, offering a unique blend of yield generation, regulatory clarity, and programmable infrastructure that challenges traditional fixed-income paradigms. This transformation is driven by a confluence of factors: the U.S. Securities and Exchange Commission's (SEC) reclassification of Ethereum as a utility token, the CLARITY Act's removal of regulatory barriers, and the explosive growth of Ethereum staking and tokenized real-world assets (RWAs). Institutional Adoption: From Speculation to Strategy Institutional investors have poured over $2.44 billion into Ethereum-backed instruments in Q2 2025 alone, with investment advisors leading the charge. These advisors now control $1.35 billion in Ethereum ETF exposure, equivalent to 539,757 ETH, while hedge funds and Wall Street giants like Goldman Sachs ($721.8 million in ETH ETFs) and Jane Street Group ($190.4 million) have followed suit. This surge reflects a strategic pivot toward Ethereum as a yield-generating asset, particularly in a low-interest-rate environment where traditional treasuries offer diminishing returns. Corporate treasuries are also redefining their reserve strategies. Bitmine Immersion Technologies, for instance, holds 1.713 million ETH ($7.5 billion) under its “alchemy of 5%” strategy, aiming to acquire 5% of Ethereum's total supply. Meanwhile, SharpLink Gaming has staked 728,804 ETH, generating annualized yields of 3–14%—a stark contrast to Bitcoin's zero-yield model. These moves underscore Ethereum's appeal as a programmable, deflationary asset that combines capital appreciation with active income generation. Yield Innovation: Staking and Tokenized Assets Ethereum's proof-of-stake model and liquid staking derivatives (LSDs) have unlocked unprecedented yield opportunities. Protocols like Lido Finance and EigenLayer now manage $43.7 billion in staked and restaked ETH, with EigenLayer securing $17 billion in total value locked (TVL). This infrastructure allows institutions to earn staking rewards while retaining liquidity—a dual benefit absent in traditional debt markets. Tokenized RWAs further amplify Ethereum's utility. The network now accounts for 72% of the $7.5 billion in tokenized RWAs, including $5.3 billion in U.S. Treasury bonds. Layer 2 solutions like Arbitrum and Optimism have expanded Ethereum's market share to 85% in this space, enabling faster settlements and programmable smart contracts. For example, BlackRock's BUIDL fund, backed by tokenized Treasuries, has surpassed $2.4 billion in value, while Apollo's ACRED private credit fund and VanEck's VBILL Treasury illustrate Ethereum's role in institutional-grade alternative assets. Risk Diversification: A New Asset Class for Institutional Portfolios Ethereum's deflationary dynamics—driven by EIP-1559 burns and staking—create a unique scarcity model. Annual supply contraction of 0.5% contrasts sharply with Bitcoin's fixed supply, offering a valuation floor that appeals to risk-averse investors. On-chain data reveals that mega whale ETH holders increased their positions by 9.31% since October 2024, while exchange-held ETH balances hit a nine-year low of 14.88 million tokens. These metrics signal a shift toward long-term value accumulation, historically correlated with bullish price movements. For institutional investors, Ethereum-backed treasuries provide diversification beyond traditional equities and bonds. The Federal Reserve's dovish policy has made staking returns more attractive than fixed-income assets, with Ethereum ETFs attracting $1.83 billion in net inflows in August 2025—far outpacing Bitcoin ETFs. This trend is reinforced by Ethereum's role in tokenized institutional alternative funds (IAFs), which now hold $1.74 billion, with Ethereum accounting for $1 billion of that value. Regulatory Clarity and Future Implications The SEC's July 2025 approval of in-kind creation and redemption mechanisms for Ethereum ETFs marked a regulatory inflection point . This innovation reduced transaction costs and enhanced liquidity, enabling institutions to deploy capital more efficiently. Looking ahead, the SEC's October 2025 rulings on staking integration and custody standards could further accelerate adoption, potentially pushing Ethereum ETF assets under management (AUM) to $27.66 billion. For investors, the implications are clear: Ethereum-backed treasuries are reshaping debt markets by offering higher yields, programmable infrastructure, and regulatory compatibility. However, risks remain. While Ethereum's deflationary model and institutional-grade security mitigate some volatility, regulatory uncertainty and market liquidity constraints persist. Investment Advice: Balancing Opportunity and Caution Incorporating Ethereum-backed instruments into institutional portfolios requires a nuanced approach. For risk-tolerant investors, staking and tokenized RWAs offer compelling yield generation, particularly in a low-interest-rate environment. However, diversification is key—allocating a portion of treasury reserves to Ethereum while maintaining exposure to traditional assets can hedge against market volatility. For corporations, Ethereum's programmable smart contracts enable innovative financial models, such as daily dividend distributions and tokenized private credit. Companies like Bitmine and SharpLink demonstrate how strategic ETH accumulation can enhance capital efficiency and shareholder value. In conclusion, Ethereum's rise as a treasury asset is not merely a technological shift—it is a redefinition of how institutions approach yield, risk, and capital deployment. As regulatory clarity and market infrastructure continue to evolve, Ethereum-backed instruments are poised to become a foundational component of the next-generation financial system. For investors, the question is no longer whether to consider Ethereum, but how to integrate it effectively into a diversified, yield-focused portfolio.
EigenCloud announces latest project developments, plans to expand applications in multiple fields
BlockBeats News, August 31, EigenCloud announced its latest project plans, which will be used to support applications in multiple fields including artificial intelligence (AI), A2A, DeFi, zkTLS, real-world assets (RWAs), DeFAI, DePIN, intelligent agents (Agents), Rollups, and Oracles. On June 17, Eigen Labs announced the launch of the Ethereum restaking protocol EigenCloud. a16z crypto will invest $70 million in EIGEN tokens through direct purchase, following its $100 million investment in EigenLayer in February 2024. EigenCloud is built on top of the EigenLayer restaking protocol and integrates data availability (EigenDA), general-purpose computation (EigenCompute), and dispute resolution (EigenVerify) functionalities. The platform allows developers to cryptographically prove off-chain activities, providing the same trust guarantees as on-chain activities. Currently, more than $12 billion in restaked assets are providing security for over 200 independently verifiable services.
Ethereum Leverage Risks and Whale Behavior Amid Market Downturns
Ethereum’s 2025 market dynamics reveal a stark divide between retail and institutional investor strategies, with leveraged exposure and whale activity amplifying both opportunities and vulnerabilities in a bearish environment. As the crypto market matures, understanding these contrasting behaviors is critical for investors navigating Ethereum’s volatile landscape. The Retail Leverage Time Bomb Retail traders have increasingly embraced high-leverage derivatives, with platforms offering 50x–1000x leverage creating a fragile ecosystem. In August 2025, a 15% price correction triggered $4.7 billion in liquidations, with 83% of affected positions being longs [4]. The Ethereum Leverage Ratio (ELR) on major exchanges reached 0.53—a historically extreme level—indicating systemic fragility. If prices fall below $4,400, cascading liquidations could destabilize the market [2]. This risk is compounded by the fact that 15% of Ethereum transactions now involve leverage, with whales holding extreme positions, such as a $16.35 million long at 25x leverage [1]. Retail speculation is further fueled by meme tokens and altcoins, diverting capital from Ethereum’s core utility-driven ecosystem [3]. However, this short-term focus leaves portfolios exposed to sudden volatility, as seen in August’s selloff. Institutional Hedging and Whale Accumulation In contrast, institutional investors have adopted a more measured approach. Ethereum ETFs attracted $13 billion in inflows during Q2 2025, with BlackRock’s ETHA ETF alone securing $500.85 million in a single session [1]. These inflows reflect confidence in Ethereum’s 3–12% staking yields, which outpace Bitcoin’s static store-of-value model [2]. By July 2025, 29% of Ethereum’s supply was staked or held through ETFs, with corporate treasuries staking 1.9% of the total supply [2]. Whales, meanwhile, have shifted to defensive strategies. Over $1 billion in ETH was withdrawn from exchanges to cold storage in late 2025, signaling long-term confidence [1]. This accumulation is supported by Ethereum’s proof-of-stake upgrades and its role in decentralized finance (DeFi) and stablecoin infrastructure [3]. For example, EigenLayer’s restaking ecosystem reached $15 billion in TVL, offering institutional-grade yield opportunities [5]. Strategic Hedging in a Bearish Environment Institutions are leveraging Ethereum’s utility to hedge against market downturns. Tokenized real-world assets (RWAs) and liquid staking derivatives provide diversified income streams, while ETFs allow exposure without direct price risk [4]. Meanwhile, retail traders face a stark choice: reduce leverage or risk liquidation. The contrast is evident in Ethereum’s ETH/BTC ratio, which surged to 0.71 in Q3 2025 as institutional capital reallocated toward Ethereum’s dynamic ecosystem [2]. However, the coexistence of leveraged speculation and institutional strategies creates a fragile equilibrium. While ETF inflows and whale accumulation suggest long-term bullish sentiment, excessive retail leverage remains a crash catalyst. Conclusion Ethereum’s 2025 market is defined by a dual narrative: retail traders amplify volatility through high-leverage bets, while institutions and whales deploy strategic hedging and yield-generating tools. For investors, the key lies in balancing exposure to Ethereum’s utility-driven growth with risk management. As regulatory clarity and institutional adoption accelerate, Ethereum’s structural advantages may outpace short-term volatility—but only if the leveraged retail segment avoids triggering a systemic collapse. Source: [1] Institutional Flows Push Ethereum into Spotlight: Analysts [2] Ethereum's Institutional-Driven Rally and Its Implications for [3] Why ETH Is Defying the Crypto Selloff in Q3 2025 [4] Ethereum's Bullish Momentum and High-Risk Leverage in 2025 [5] Ethereum's $30 Billion Restaking Shift
Ethereum Whale Activity and Market Dynamics: What FalconX’s $357M Accumulation Signals for ETH’s Short-Term Trajectory
The recent $357 million Ethereum accumulation via FalconX—spanning 78,891 ETH across four whale wallets—has ignited debate about its implications for Ethereum’s short-term trajectory. This synchronized buying spree occurred during a 2.85% price dip to $4,372.64, coinciding with $13.64 billion in Ethereum ETF inflows, a stark contrast to the bearish sentiment typically associated with such price declines [1]. The interplay between institutional confidence and whale-driven capital reallocation underscores a critical shift in market dynamics, one that demands closer scrutiny. Institutional Whale Behavior: A New Paradigm Ethereum’s institutional whale activity has evolved from speculative trading to strategic staking and long-term capital preservation. Over the past year, 3.8% of circulating ETH (approximately $1.2 billion) has flowed into institutional wallets, with mega-whales accumulating 9.31% more ETH since October 2024 [1]. This trend is amplified by Ethereum’s deflationary mechanics and staking yields, which now attract 29.6% of the total supply into staking protocols like Lido and EigenLayer, locking up $43.7 billion in value [1]. The FalconX accumulation aligns with this pattern. By purchasing ETH during a dip, these whales are not merely reacting to volatility but signaling conviction in Ethereum’s structural advantages. For instance, 64 companies have added ETH to their corporate treasuries, and institutional treasuries now hold 3.3% of Ethereum’s total supply (4 million ETH, or $17.5 billion) [1]. This institutional adoption, coupled with Ethereum’s Total Value Locked (TVL) reaching $200 billion, reflects a broader reallocation of capital toward assets with utility in DeFi, Layer 2 solutions, and regulatory clarity under the U.S. CLARITY Act [1]. Market Sentiment and Capital Flow Whale activity often acts as a leading indicator for market sentiment. In August 2025, Ethereum whales accumulated 1.44 million ETH, with 340,000 ETH acquired in just three days—a pace outstripping Bitcoin’s whale accumulation by a factor of 3.6 [1]. This surge coincided with Ethereum ETFs drawing $4 billion in net inflows, including BlackRock’s ETHA ETF capturing $640 million in a single day [1]. Such synchronized movements suggest that institutional investors are treating Ethereum as a foundational asset, akin to gold or equities, rather than a speculative play. The psychological impact of whale behavior is further amplified by cross-chain migrations. For example, a $2.59 billion BTC-to-ETH transfer in 2025 highlights strategic capital shifts toward Ethereum’s staking yields and scalability improvements from the Dencun Upgrade [2]. Meanwhile, Ethereum’s whale population has grown significantly, with 48 new addresses holding 10,000+ ETH added in August alone [5]. This growth outpaces Bitcoin’s 13 new whale addresses, signaling a broader institutional preference for Ethereum’s ecosystem [3]. Risks and Opportunities While the short-term outlook appears bullish, risks persist. Leverage in crypto markets remains fragile, and macroeconomic volatility—such as interest rate uncertainty—could trigger profit-taking or liquidations. However, Ethereum’s structural advantages—high staking yields, deflationary supply, and improved scalability—position it to outperform in a recovery phase. The recent FalconX accumulation, paired with $164 million in single-day institutional deposits, suggests that whales are hedging against near-term volatility while positioning for long-term gains [4]. In conclusion, Ethereum’s whale activity and institutional adoption are reshaping market dynamics. The $357 million FalconX accumulation is not an isolated event but part of a broader trend where institutional investors are leveraging Ethereum’s utility and regulatory tailwinds. As whale-driven capital flows continue to outpace Bitcoin’s, Ethereum’s role as a catalyst for altcoin dominance and institutional adoption becomes increasingly evident. **Source:[1] Whale Activity as a Leading Indicator in Crypto Market Trends [2] Altcoin Liquidity and TVL Trends in 2025 [3] Large-Scale Bitcoin And Ethereum Investors Add 61 Whale Addresses In August [4] Whale Rotation Alert: Bitcoin Dump, Ethereum ... [5] Large-Scale Bitcoin And Ethereum Investors Add 61 Whale Addresses in August
Ethereum ETFs Overtake Bitcoin in Institutional Capital Inflows
Institutional capital has undergone a seismic shift in 2025, with Ethereum ETFs outpacing Bitcoin counterparts in inflows by a staggering margin. By late August, Ethereum ETFs attracted $3.37 billion in net inflows over the month, while Bitcoin ETFs faced $966 million in outflows [1]. This trend reflects a broader reallocation of institutional exposure from Bitcoin’s zero-yield model to Ethereum’s yield-generating infrastructure, driven by structural advantages and regulatory clarity. The Yield Advantage: Ethereum’s Structural Edge Ethereum’s proof-of-stake (PoS) model offers staking yields of 3.8–5.5%, a critical differentiator in a high-interest-rate environment [2]. These yields, combined with Ethereum’s deflationary supply model—burning 1.32% of its annual supply—create a dual value proposition of growth and scarcity [3]. In contrast, Bitcoin’s fixed supply and lack of yield mechanisms leave it ill-suited for capital-efficient strategies. Institutional investors are also leveraging liquid staking tokens (LSTs) like stETH, which provide liquidity while retaining staking rewards. Protocols such as Lido Finance and EigenLayer enable institutions to deploy capital across DeFi and RWA tokenization without sacrificing yield [4]. For example, BlackRock’s ETHA ETF alone captured $323 million in a single day in August 2025, underscoring the demand for Ethereum-based yield strategies [5]. Regulatory Clarity and Technological Innovation The U.S. SEC’s 2025 reclassification of Ethereum as a utility token under the CLARITY Act removed a major barrier to adoption, enabling in-kind creation/redemption mechanisms for Ethereum ETFs [6]. This regulatory clarity, absent for Bitcoin, has made Ethereum ETFs more efficient and compliant, aligning them with traditional commodity ETFs. Technological upgrades like the Dencun and Pectra hard forks have further solidified Ethereum’s appeal. These upgrades reduced Layer 2 transaction fees by 94%, boosting DeFi Total Value Locked (TVL) to $223 billion by July 2025 [7]. This scalability advantage positions Ethereum as a foundational infrastructure asset, while Bitcoin’s reliance on third-party solutions like the Lightning Network lags in efficiency [8]. Institutional Allocation Shifts The reallocation of capital is evident in institutional portfolio structures. A 60/30/10 allocation model—60% Ethereum-based ETPs, 30% Bitcoin, and 10% altcoins—has emerged as a standard, reflecting Ethereum’s perceived stability and yield potential [9]. Over 4.3 million ETH is now controlled by corporate treasuries, with companies like BitMine and SharpLink staking significant portions to generate 4–6% annualized returns [10]. On-chain data reinforces this trend: exchange-held balances account for just 14.5% of Ethereum’s total supply, the lowest since November 2020 [11]. This shift from speculative trading to long-term accumulation validates Ethereum’s institutional appeal. Conclusion Ethereum’s institutional adoption is not speculative but rooted in its infrastructure utility, yield generation, and regulatory alignment. As Bitcoin ETFs stagnate, Ethereum ETFs are redefining institutional crypto portfolios, offering a blend of growth, yield, and compliance. For investors seeking to reallocate exposure, Ethereum’s ecosystem—powered by PoS staking, DeFi, and RWA tokenization—represents a compelling long-term opportunity. Source: [8] Ethereum ETFs Outperforming Bitcoin: A Strategic Shift in
Ethereum Trends in 2025: The More Successful the Protocol, the Higher the Ecosystem Risk? In-depth Analysis of the Post-Pectra Era
Ethereum Core Protocol Grows Stronger, While the Ecosystem Faces Unprecedented Complexity Over the past year, Ethereum has staged a textbook-level engineering miracle. From the Dencun upgrade, which fundamentally solved the L2 cost issue, to the Pectra upgrade aimed at optimizing the core staking economy, this "digital Leviathan" of the digital world has precisely executed its public roadmap. However, a peculiar paradox now confronts all observers: the certainty and success at the protocol layer have not brought peace to the ecosystem layer; instead, they have spawned unprecedented complexity and potential risks. Ethereum's engine room (the main protocol) has never been so powerful and clear, but its vast new continent (L2 and Restaking ecosystem) is filled with the clamor of opportunity and the fog of chaos. We must now ask a new question: when the war at the base protocol layer is essentially over, where is Ethereum's next battlefield? The Duet of Dencun and Pectra To understand Ethereum's current state, one must first acknowledge the tremendous success of its core engineering. This victory consists of two key upgrades: First, the economic transformation triggered by the Dencun upgrade at the beginning of 2024. By introducing Proto-Danksharding (EIP-4844), Ethereum mainnet opened up dedicated, low-cost data channels (Blobs) for Layer 2 networks. This was not a minor tweak, but a fundamental cost revolution. Over the past year and a half, we have witnessed L2 transaction fees plummet and remain at extremely low levels. The market has voted with its capital: in recent months, while ETH’s price has remained stable, its performance has lagged far behind the leading L2 ecosystem tokens. This clearly indicates that expectations for value growth have successfully shifted from the mainnet’s execution capability to the L2 application boom fueled by cheap data. Ethereum has successfully transformed itself from a "congested world computer" into the "security settlement and data anchor" of the entire ecosystem. Second, the governance evolution brought by the Pectra upgrade completed in May this year. If Dencun solved the "cost" problem, then Pectra directly addressed the challenge of "control." Facing the trend of validator power concentration under the PoS mechanism, Pectra, through improvements such as raising the effective balance cap for validators (EIP-7251), reduced the operational advantages of large staking pools and optimized the participation experience for decentralized staking. This was a precise, surgical intervention aimed at alleviating centralization pressure from the protocol level. Although a single upgrade cannot eliminate all issues, it sent a strong signal to the entire community: Ethereum core developers have both the ability and the will to defend the network’s decentralized nature. The successful delivery of these two upgrades means that Ethereum’s main contradictions at the protocol layer have basically been resolved. The engine room is running smoothly, providing an unprecedentedly certain foundation for the expansion of the upper layers. Systemic Risks of Restaking and the Fragmentation of L2 However, the success of the engine room has pushed complexity to the broader ecosystem layer, giving rise to two major fogs: First, the maturity of the Restaking track and its inherent systemic risks. Restaking protocols represented by EigenLayer have evolved over the past year from an emerging concept into a massive, complex financial Lego. By sharing Ethereum’s economic security, they provide a launchpad for a large number of new protocols (such as DA layers, oracles, bridges), which is undoubtedly a huge innovation. But in essence, they add new, leverage and risk layers—unconstrained by the main protocol—on top of Ethereum’s credit foundation. The failure of a restaking service could trigger slashing of ETH principal, leading to a series of cascading liquidations. This "potential systemic risk" has become a core issue that analysts cannot avoid when assessing Ethereum’s long-term stability. Second, the side effect of L2 ecosystem prosperity: severe fragmentation. Dozens of rollup networks operate independently, forming isolated liquidity islands and user experience gaps. Transferring assets between different L2s is not only cumbersome, but also exposes users to security risks from various cross-chain bridges. This escalating "L2 war" has spurred innovation while greatly harming the network’s overall effect. What should be a unified digital nation has actually split into countless city-states with different languages and disconnected transportation. The commonality of these two major issues is that neither can be solved simply by the next upgrade of the Ethereum main protocol. The battlefield has shifted. Image description: Layer 2 Total Value Locked (TVL) market share pie chart Data source: defillama Active Gardeners: How EcoDev Bridges Ecosystem Cracks Faced with ecosystem chaos that the protocol layer cannot directly intervene in, the Ethereum Foundation’s response strategy demonstrates a mature governance approach that goes beyond pure technical thinking. Its Ecosystem Development Program (EcoDev) is playing the role of an "active gardener," using "soft power" to bridge the cracks in the ecosystem. Reviewing its recent funding strategies, we can see that EcoDev’s investments are highly targeted. Rather than simply rewarding the most successful projects, it heavily allocates resources to areas that can enhance the ecosystem’s "public goods": Funding standardization tools: Supporting the development of universal L2 cross-chain communication standards and developer toolkits to reduce the negative impact of fragmentation. Supporting academic research: Providing long-term funding for cutting-edge areas such as ZK technology and MEV mitigation solutions to ensure technical reserves. Cultivating global communities: Investing resources in emerging markets such as Asia, Africa, and Latin America to ensure Ethereum’s culture and developer base remain global and diverse. The core idea of this strategy is: since it’s impossible to enforce unification through protocol rules, guide the ecosystem toward integration by nurturing public infrastructure and common standards. This is a softer and more long-term governance philosophy. The Evolution from Protocol Engineer to Ecosystem Gardener The future path for Ethereum is already clear. It has successfully completed the modernization of its core protocol, establishing a robust and efficient foundation. Now, its focus is shifting from being a "protocol engineer" to a more decentralized "ecosystem gardener." This is a dual-track long march: at the protocol layer, continuing with fine-tuned optimization and security reinforcement; at the ecosystem layer, responding to new challenges born of success through strategic investment and cultivation. What we are seeing is no longer just a development team buried in technical implementation, but a mature organization that knows how to govern a vast, complex, and vibrant digital economy. This ability to manage complexity, calmly face new problems, and respond with diverse approaches is precisely Ethereum’s most trustworthy asset.
Ethereum's Undervalued Treasury Play: Why ETH and DAT Companies Offer a Stronger Case Than Bitcoin
The cryptocurrency market in 2025 is witnessing a seismic shift in institutional capital allocation, with Ethereum (ETH) emerging as a compelling alternative to Bitcoin (BTC) for treasuries and yield-generating strategies. Standard Chartered's bold $7,500 ETH price target for year-end 2025 reflects a confluence of factors that position Ethereum-based digital asset treasuries (DATs) as a superior investment vehicle compared to Bitcoin counterparts. This article unpacks the institutional accumulation, staking yield advantages, and valuation dislocation driving Ethereum's outperformance—and why investors should prioritize ETH and DATs over Bitcoin in the current cycle. Institutional Accumulation: A Supply Squeeze in Motion Ethereum's institutional adoption has accelerated at an unprecedented pace, with corporate treasuries, ETFs, and hedge funds aggressively accumulating ETH. By July 2025, institutional entities held 4.1 million ETH ($17.6 billion), a 3.8% increase in circulating supply since early 2025. This surge is fueled by Ethereum's unique ability to generate 4.5–5.2% staking yields, a feature absent in Bitcoin's treasury model. The ETF landscape further amplifies this trend. U.S.-listed Ethereum ETFs have attracted $23 billion in assets under management by Q3 2025, with BlackRock's ETHA ETF alone drawing $2.2 billion in three days in August 2025. This outpaces Bitcoin ETF inflows, signaling a strategic reallocation of capital toward Ethereum's utility-driven ecosystem. The ETH/BTC ratio, a key institutional sentiment indicator, hit a 14-month high of 0.71 in 2025, reflecting Ethereum's growing preference. This shift is underpinned by Ethereum's deflationary supply model (post-EIP-1559 and Dencun upgrades) and its role as a foundational infrastructure asset for decentralized finance (DeFi). Staking Yields: Ethereum's Competitive Edge Ethereum's staking mechanism offers a critical advantage over Bitcoin. With 29.6% of circulating ETH staked as of July 2025, institutional investors are locking up capital to secure the network while earning yields. Protocols like Lido and EigenLayer have further enhanced liquidity through staking derivatives, enabling institutions to earn returns without sacrificing capital flexibility. In contrast, Bitcoin's treasury model lacks yield generation, making it a passive store of value. Ethereum's 3–5% staking yields create a flywheel effect: higher demand for ETH drives up prices, which in turn increases staking rewards in dollar terms. This dynamic is particularly attractive in a low-interest-rate environment, where traditional fixed-income assets struggle to compete. Moreover, DAT companies like SharpLink Gaming and BitMine have introduced automatic buyback mechanisms to protect against valuation erosion. For instance, SharpLink triggers buybacks when its net asset value (NAV) dips below 1, creating a price floor and reinforcing institutional confidence. These structural advantages are absent in Bitcoin-based treasuries, where valuation risks remain unmitigated. Valuation Dislocation and Market Correction Dynamics Ethereum's valuation story is further strengthened by its deflationary supply model and on-chain demand dynamics. Exchange-held ETH has fallen to a nine-year low of 13 million, a historical precursor to price surges. The MVRV (Market Value to Realized Value) ratio of 2.0 indicates a strong accumulation phase, with no immediate selling pressure. Standard Chartered's $7,500 target hinges on Ethereum's ability to capture growth in the $2 trillion stablecoin market by 2028, driven by the GENIUS Act's regulatory clarity. With 65% of DeFi total value locked (TVL) on Ethereum, the network is poised to benefit from a surge in stablecoin activity and real-world asset tokenization. Bitcoin, meanwhile, faces valuation headwinds. Its supply is fixed at 21 million, but institutional demand is constrained by its lack of yield and utility. The ETH/BTC ratio's divergence suggests that Ethereum is being priced for growth while Bitcoin is being discounted for stagnation. Why DATs Outperform Bitcoin Treasuries Digital asset treasuries (DATs) offer a superior risk-adjusted return profile compared to Bitcoin-based alternatives. Ethereum's 4.5–5.2% staking yields generate active income, whereas Bitcoin treasuries remain yield-free. Additionally, DATs like SharpLink and BitMine have demonstrated capital preservation mechanisms (e.g., buybacks) that Bitcoin lacks. The regulatory tailwinds are equally compelling. The U.S. CLARITY and GENIUS Acts have reclassified ETH as a digital commodity, enabling SEC-compliant staking and reducing compliance friction for institutions. This clarity has attracted major banks like Goldman Sachs and JPMorgan Chase into the Ethereum ecosystem, further validating its institutional-grade status. Investment Thesis and Strategic Recommendations Ethereum's institutional bull case is not speculative—it is a calculated reallocation of capital toward a platform offering yield, utility, and infrastructure-grade value. With 30–40% of Ethereum's supply under institutional control and ongoing inflows from ETFs and corporate treasuries, the asset is entering a self-reinforcing cycle of demand and price appreciation. Investors should consider Ethereum ETFs (e.g., ETHA, ETHE) and DAT companies (e.g., SharpLink, BitMine) for exposure. These vehicles combine the upside of Ethereum's price action with the income generation and capital preservation features that Bitcoin cannot match. In conclusion, Ethereum's undervalued treasury play is a product of its structural advantages, regulatory tailwinds, and institutional adoption momentum. As the market corrects for Bitcoin's limitations and Ethereum's potential, the $7,500 target becomes increasingly attainable—and the window to capitalize on this dislocation is narrowing.
The Institutional Shift: Why Ethereum ETFs Are Outperforming Bitcoin in 2025
The institutional capital landscape in 2025 has witnessed a seismic shift, with Ethereum ETFs outpacing Bitcoin counterparts in inflows, assets under management (AUM), and strategic adoption. This divergence is not a fleeting market anomaly but a structural reallocation driven by Ethereum's yield-generating capabilities, regulatory clarity, and corporate treasury integration. For investors, understanding this shift is critical to navigating the evolving crypto-asset ecosystem. Yield Generation: Ethereum's Structural Edge Ethereum's transition to a proof-of-stake (PoS) model in 2022 laid the groundwork for its dominance in 2025. By Q2 2025, Ethereum staking yields averaged 4–6%, a compelling return in a high-interest-rate environment. These yields, facilitated by protocols like Lido Finance and EigenLayer, enable institutional investors to generate passive income while securing the network. In contrast, Bitcoin's proof-of-work (PoW) model offers no direct yield mechanism, leaving it as a “hold and hope” asset. The implications are profound. Institutional portfolios now prioritize Ethereum ETFs as a dual-purpose tool: capital appreciation and income generation. For example, BlackRock's ETHA ETF attracted $323 million in a single day in August 2025, leveraging staking yields to outperform Bitcoin's IBIT, which saw just $45.34 million in inflows. This trend reflects a broader shift toward assets that align with traditional portfolio construction principles—diversification, yield, and risk-adjusted returns. Regulatory Clarity: A Tailwind for Ethereum The U.S. Securities and Exchange Commission (SEC)'s reclassification of Ethereum as a utility token under the CLARITY and GENIUS Acts in early 2025 removed a critical barrier to institutional adoption. This legal framework enabled the launch of in-kind creation/redemption mechanisms for Ethereum ETFs, reducing issuance costs and enhancing liquidity. By July 2025, Ethereum ETFs had attracted $28.5 billion in inflows, while Bitcoin ETFs faced $548 million in outflows. Regulatory clarity also unlocked innovation. Staking derivatives and liquid staking tokens (e.g., stETH) became viable investment vehicles, allowing institutions to access Ethereum's yield without sacrificing liquidity. Meanwhile, Bitcoin's uncertain legal status—still debated as a commodity or security—has constrained its institutional appeal. The absence of a clear regulatory path for Bitcoin staking further widens the gap. Corporate Treasury Adoption: A Flywheel of Demand Ethereum's growing adoption by corporate treasuries has created a self-reinforcing cycle of demand. Over 6.5 million ETH is now held by institutional investors, with 4.3 million ETH controlled by corporate treasuries. Companies like BitMine Immersion Technologies and SharpLink Gaming have aggressively accumulated Ethereum, staking a significant portion to generate yields. This trend reduces the circulating supply of ETH, exerting upward pressure on price while signaling confidence in Ethereum's long-term utility. Bitcoin, by contrast, remains a store-of-value asset for corporate treasuries but lacks the active income generation that Ethereum offers. While Bitcoin holdings have reached $414 billion as of August 2025, the absence of staking participation limits its role in capital-efficient portfolios. Long-Term Implications for Portfolios and Markets The institutional shift toward Ethereum ETFs has three key implications: 1. Portfolio Rebalancing: Investors should consider Ethereum ETFs as a core component of digital-asset allocations, particularly in low-yield environments. The 60/30/10 institutional allocation model (60% Ethereum-based ETPs, 30% Bitcoin, 10% altcoins) reflects this reallocation. 2. Price Dynamics: Reduced circulating supply from staking and treasury holdings may drive Ethereum's price higher, but volatility risks persist. A large-scale outflow from Ethereum ETFs—similar to Grayscale's past struggles—could destabilize the market. 3. Market Structure: Ethereum's dominance in institutional capital could accelerate its role as the backbone of decentralized finance (DeFi) and real-world asset (RWA) tokenization. By Q3 2025, Ethereum's DeFi Total Value Locked (TVL) reached $223 billion, dwarfing Bitcoin's negligible utility in this space. Investment Advice: Navigating the Shift For investors, the institutional shift toward Ethereum ETFs presents both opportunities and risks. Those seeking yield and infrastructure exposure should prioritize Ethereum-based products, particularly those with staking integration. However, diversification remains key: Bitcoin's role as a macro-hedge against inflation and geopolitical uncertainty should not be ignored. The regulatory environment will remain a wildcard. While Ethereum's utility token status provides clarity, future SEC actions could alter the landscape. Investors should monitor developments in staking integration and custody standards, which could further widen Ethereum's lead. In conclusion, the 2025 institutional shift reflects a fundamental redefinition of how capital interacts with blockchain-based assets. Ethereum's structural advantages—yield generation, regulatory clarity, and corporate adoption—position it as a superior institutional asset compared to Bitcoin. For investors, this is not merely a market trend but a strategic reallocation with long-term implications for portfolio construction and market dynamics.
Ethereum's V-Shaped Recovery: Institutional Whale Accumulation and ETF Inflows Signal a Bullish Turnaround
Ethereum's recent price trajectory has painted a compelling narrative of resilience and institutional confidence. After a 12% correction in late August 2025, the asset has staged a V-shaped recovery, driven by a confluence of on-chain metrics, whale activity, and regulatory tailwinds. For investors, this represents a critical inflection point where Ethereum transitions from speculative hype to a foundational infrastructure asset. On-Chain Metrics: A Structural Shift in Capital Flow Ethereum's on-chain data in Q3 2025 reveals a strategic repositioning of capital by institutional-grade whale investors. Whale wallets (10,000–100,000 ETH) now control 22% of the circulating supply, while mega whales (100,000+ ETH) have grown their holdings by 9.31% since October 2024. This accumulation is not random but methodical, mirroring traditional asset management strategies for undervalued equities. A notable example is a Bitcoin whale converting 22,769 BTC ($2.59 billion) into 472,920 ETH, signaling a deliberate pivot to Ethereum's utility-driven ecosystem. The staking infrastructure further reinforces this trend. Over 35 million ETH are now locked in staking, with 3.8% annualized yields outpacing traditional fixed-income returns. The validator exit queue swelled to 910,461 ETH ($3.7 billion) by August 19, 2025, as early stakers realized 240%+ returns. This flywheel effect—where staking rewards are reinvested via protocols like EigenLayer—has created a compounding cycle of demand and utility. Institutional Whale Activity: A Calculated Long-Term Play Whale behavior in Q3 2025 underscores a shift from speculative trading to long-term capital accumulation. Over 1.2 million ETH (~$6 billion) was withdrawn from exchanges and staked, reducing immediate sell-side pressure. BitMine Immersion Technologies, now the largest corporate Ethereum treasury holder, added 190,500 ETH in a single week, bringing its total holdings to 1.7 million ETH ($8.8 billion). This surge in institutional staking is supported by Ethereum's deflationary mechanics, with a 1.32% annualized burn rate reducing supply and increasing the value of staking rewards. The Pectra/Dencun upgrades have also amplified Ethereum's appeal. Gas fees were slashed by 90%, and throughput increased to 100,000 TPS, making it the preferred smart contract platform for DeFi and tokenized finance. With 72% of total value locked (TVL) in DeFi and 50% of stablecoin issuance tied to Ethereum, the network's utility is no longer speculative—it's structural. ETF Inflows: A New Era of Institutional Adoption Ethereum ETFs have become a cornerstone of institutional crypto portfolios. By August 2025, Ethereum ETFs attracted $27.6 billion in inflows, dwarfing Bitcoin's $548 million. BlackRock's ETHA alone recorded $233.6 million in a single day, reflecting a 90% dominance in Ethereum ETF inflows. This surge is driven by regulatory clarity: the SEC's July 2025 reclassification of Ethereum as a utility token removed legal barriers, enabling staking and ETF holdings of 36 million ETH (29% of total supply). The institutional reclassification is mirrored in on-chain behavior. Exchange-held ETH balances have hit a 9-year low of 18 million tokens, indicating that 97% of ETH is now held off-exchange by long-term holders or stakers. This shift reduces volatility and aligns Ethereum with traditional infrastructure assets like gold or real estate. Technical and Market Indicators: A Bullish Setup Ethereum's technical indicators reinforce its bullish narrative. The Network Value to Transactions (NVT) ratio is at historic lows (37), suggesting undervaluation relative to transaction volume. The MVRV Z-Score dropped to 1.43, a level historically associated with market troughs. Meanwhile, Ethereum's Gini coefficient (0.6603) reflects high wealth concentration among large holders, a sign of institutional confidence. Bitcoin's market dominance has fallen below 60%, a level historically linked to altcoin rotation. Ethereum, as the leading altcoin, is poised to benefit disproportionately. The 18-month resistance level at $4,100 was decisively broken, and the Money Flow Index (MFI) at 83.10 and a bullish MACD crossover suggest strong momentum for a potential breakout above $5,000. Investment Implications: A Strategic Buy For investors, Ethereum's current trajectory presents a unique opportunity. The convergence of whale accumulation, staking participation, and ETF inflows creates a self-sustaining cycle of demand and value capture. Regulatory tailwinds, deflationary mechanics, and technological upgrades further solidify its position as a foundational asset. Key entry points include: 1. Staking Protocols: Allocate capital to liquid staking derivatives (LSDs) like stETH or EigenLayer to capture 3.8% yields. 2. ETF Exposure: Invest in Ethereum ETFs (e.g., ETHA, FETH) for regulated, institutional-grade exposure. 3. Long-Term Holdings: Accumulate ETH during price dips, leveraging its deflationary supply model and growing TVL in DeFi. Ethereum's V-shaped recovery is not a short-term bounce but a structural re-rating of its value. As institutional capital continues to reallocate from Bitcoin to Ethereum, the asset is positioned to outperform traditional equities and commodities in the next bull phase. For investors with a 12–18 month horizon, Ethereum represents a high-conviction, high-reward opportunity in the evolving crypto landscape. In conclusion, Ethereum's on-chain analytics and institutional sentiment paint a clear picture: this is not just a recovery—it's a new era of institutional adoption and utility-driven growth. The next leg higher is not a question of if, but when.
Cap Labs attracts capital with EigenLayer-backed credit model
Cap Labs’ new stablecoin cUSD has seen rapid adoption since launch, climbing to $67.85 million in circulation over the past week, according to DefiLlama. Etherscan shows 2,735 holders of the token to date. The jump signals strong demand for Cap’s yield-layered digital dollar model, which combines regulated reserve assets with EigenLayer-powered credit underwriting. Built atop the newly launched Cap Stablecoin Network (CSN), cUSD is designed as a 1:1 redeemable stablecoin backed by assets like PayPal’s PYUSD , BlackRock -managed BUIDL , and Franklin Templeton’s BENJI. The yield-bearing version stcUSD — minted by staking cUSD — is enabled by a three-party system of lenders, operators, and restakers. Cap’s core innovation lies in its structure: operators borrow stablecoins to deploy yield strategies, restakers underwrite the operator’s credit risk, and lenders (stcUSD holders) earn a floating yield, currently around 12%, depending on market demand and operator performance. While restaker collateral provides protection against operator default, stcUSD holders are still exposed to fluctuating yield dynamics. cUSD’s impressive growth; Source: DefiLlama Unlike many past stablecoin launches, Cap’s model is carefully tuned to comply with the GENIUS Act , the sweeping US stablecoin legislation that prohibits interest-bearing payment tokens. Speaking at the Stablecoin Summit in Cannes in June , Cap Labs founder Benjamin Lens was blunt: “They said no yield, and it’s pretty clear — there’s no way around it. They do not want stablecoins giving yield to retail investors,” Lens said. Thus, stcUSD is a separate ERC-4626 vault token, which users can mint by staking cUSD. The yield is generated through a marketplace of borrowing and restaking, not directly from Cap Labs. “Genius Act covers companies that are generating yield on behalf of users and giving them to the users,” Lens said in Cannes, whereas Cap is “an immutable open protocol like Ethereum , like Bitcoin.” Combined with the fact that the percentage of any one stablecoin backing cUSD is limited to 40%, Lens thinks they have a compliant mechanism. “This is the standard that we’ve agreed to with Templeton and BlackRock for our integration with them,” Lens told Blockworks, noting it’s the same arrangement that UStB (from Ethena) made in partnership with BlackRock. Restaking evolution Cap’s design aligns with a trend emerging on EigenLayer : the financialization of Actively Validated Services (AVSs). Traditionally, AVSs on EigenLayer offered infrastructure services — like oracles or bridges — with risk limited to uptime or correctness. But a new wave of AVSs is using EigenLayer to underwrite financial guarantees. Cap is one example highlighted by EigenLayer founder Sreeram Kannan. “A staker can stake and promise that an operator [like Susquehanna] is going to make a 10% APR,” Kannan told Blockworks. “You can underwrite financial risk using EigenLayer, which is a very new kind of risk, which requires much, much more active curation and monitoring,” he said. What makes this possible is EigenLayer’s recent rollout of a new feature, complementary to slashing, which went live in April . While slashing enables restakers to be penalized for backing underperforming operators, redistribution , launched in late July, allows slashed funds to be redirected back to the impacted AVS — such as Cap’s lending vault — rather than burned. That change turns EigenLayer into a programmable risk distribution layer, capable of enforcing structured finance contracts entirely onchain. “With financial AVSs, slashing is the core logic,” Kannan said. “A liquidation is an example — if the hurdle rate is not met — slash and move the money out.” That’s easier than slashing some infrastructure AVSs like a ZK or TEE coprocessor, where it’s harder to adequately express the slashing logic onchain, he added. According to a research note from Serenity Research and Catalysis published Sunday, Cap’s model resembles a CDS-like structure: Restakers sign off-chain legal agreements to cover operator defaults, post collateral onchain, and are liquidated if their guarantee fails. Cap currently lists market makers like Fasanara, GSR, and Amber as operators, with Gauntlet and Symbiotic restakers providing credit protection. Cap Labs’ operating company, which handles smart contracts, social media and frontend, is based in Panama, Lens said. “There are currently no plans to geofence the US. Since we’re functionally an autonomous, overcollateralized lending market, we’re taking a similar precedent to Aave and Morpho ,” he said. As Cap’s model gains traction, it could preview a broader shift in the restaking ecosystem: from securing infrastructure to enabling onchain credit underwriting, with slashing and redistribution forming the enforcement rails for next-gen financial AVSs. Get the news in your inbox. Explore Blockworks newsletters: The Breakdown : Decoding crypto and the markets. Daily. 0xResearch : Alpha in your inbox. Think like an analyst. Empire : Crypto news and analysis to start your day. Forward Guidance : The intersection of crypto, macro and policy. The Drop : Apps, games, memes and more. Lightspeed : All things Solana. Supply Shock : Bitcoin, bitcoin, bitcoin.
Time for a Web3 reality check: Which altcoin sectors are really delivering?
Key takeaways: Web3 daily activity held steady at 24 million in Q2 2025, but sector composition is shifting. DeFi leads transaction counts with 240 million weekly, yet Ethereum gas usage is now dominated by the RWA, DePIN and AI. Smart contract platforms’ coins and yield-generating DeFi and RWA tokens outperform the market, while AI and DePIN lag despite strong narratives. Altcoins are more than speculative bets on coins outside Bitcoin. In most cases, they represent — or aim to represent — specific activity sectors within Web3, a decentralized alternative to the legacy internet and its services. Assessing the state and potential of the altcoin market means looking beyond prices. Key indicators such as gas usage, transaction counts and unique active wallets (UAW) help gauge activity and adoption, while coin price performance reveals whether markets follow onchain trends. AI and social DApps gain adoption UAW counts distinct addresses interacting with DApps, offering a proxy for adoption breadth, though multiple wallets per user and automated activity can skew results. DappRadar’s Q2 2025 report shows steady daily wallet activity at around 24 million. Yet a shift in sector dominance is emerging. Crypto gaming remains the largest category, with over 20% market share, though down from Q1. DeFi has also slipped, falling to less than 19% from over 26%. In contrast, Social and AI-related DApps are gaining traction. Farcaster leads Social with roughly 40,000 daily UAW , while in AI, agent-based protocols like Virtuals Protocol (VIRTUAL) are standing out, attracting 1,900 weekly UAW. DApp industry dominance by UAW. Source: DappRadar DeFi attracts big players Transaction counts show how often smart contracts are triggered, but can be inflated by bots or automation. DeFi’s transaction footprint is paradoxical. Its user base has declined, yet it still generates over 240 million weekly transactions — more than any other Web3 category. Exchange-related activity (can overlap with DeFi) adds to this dominance, with crypto gaming trailing at 100 million weekly transactions and the “Other” category (excluding Social but including AI) at 57 million. DApps transaction per category. Source: DappRadar Total value locked (TVL) tells an even stronger story. According to DefiLlama , DeFi TVL has reached $137 billion — up 150% since January 2024, though still below its $177 billion peak in late 2021. The divergence between rising TVL and falling UAW reflects a key theme of this crypto cycle: institutionalization. Capital is concentrating in fewer, larger wallets, which now also include funds. This trend is still young, as DeFi faces regulatory uncertainty in many jurisdictions. Still, institutions are testing the waters by providing liquidity to permissioned pools, lending against tokenized treasuries from platforms like Ondo Finance (ONDO) and Maple (SYROP), the latter also known for its partnership with the investment bank Cantor Fitzgerald. Meanwhile, protocol-level automation offered by DeFi services like Lido (LIDO) or EigenLayer (EIGEN) further dampens wallet activity, as DeFi evolves into a capital-efficient layer geared toward large-scale yield generation rather than retail participation. Other use cases dominate gas Transaction data alone doesn’t capture the complete Web3 picture. Ethereum gas usage can show where economic and computational weight truly lies. Glassnode data reveals that DeFi, despite being Ethereum’s key sector, now accounts for just 11% of its gas consumption. NFTs, which used a sizeable share of gas back in 2022, have now fallen to 4%. The “Other” category, however, has surged to over 58% today from about 25% in 2022. This category covers emerging areas such as real-world asset tokenization (RWA), decentralized physical infrastructure ( DePIN ), AI-based DApps and other more or less novel services that may define Web3’s next growth phase. Ethereum gas usage by category. Source: Glassnode RWA, in particular, is often referred to as one of the most promising crypto sectors. Excluding stablecoins, total RWA value has surged from $15.8 billion at the start of 2024 to $25.4 billion today, with an estimated 346,250 tokenholders. Related: How high will Ethereum price go after breaking $4K? ETH analysts weigh in Do prices follow Web3 narratives? Asset prices rarely move in lockstep with onchain activity. While hype can drive short-term spikes, sustained gains tend to align with sectors delivering tangible utility and adoption. Over the past year, this has meant infrastructure and yield-focused projects outpacing narrative-driven plays. Smart contract platform coins posted the strongest gains, with the top 10 up an unweighted 142% on average, led by HBAR (+360%) and XLM (+334%). As the foundational layer of Web3, their price growth signals investor confidence in the sector’s long-term development. DeFi tokens also fared well, averaging 77% YoY, with Curve DAO (CRV) up 308% and Pendle (PENDLE) up 110%. The top 10 RWA tokens gained 65% on average, driven by XDC (+237%) and OUSG (+137%). DePIN’s top performers, JasmyCoin (JASMY) at +72% and Aethir (ATH) at +39%, could not prevent the sector’s average from hovering around +10%. AI tokens have been the clear laggards: The top 10 strictly AI-focused projects are down 25% YoY, with Bittensor (TAO) the only standout at +34%. Gaming tokens mostly posted losses, with only SuperVerse (SUPER) gaining 750% in the past 12 months. Social tokens remain largely absent in the crypto space, as leading protocols still lack native assets. Overall, Web3 investment remains concentrated in mature sectors, driving up the native currencies of leading smart contract platforms. Yield-focused DeFi and RWA tokens have also delivered solid returns. In contrast, the sectors behind the most hyped narratives — AI, DePIN, and Social — have yet to translate attention into meaningful token gains. As adoption deepens and more sectors mature, the gap between narrative and performance may narrow — but for now, investor confidence is clearly rooted in the building blocks of the decentralized economy.
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