Ethereum has emerged as one of the underperformers among major assets in 2025 to date. However, don’t be misled by that! Daily, tens of billions of dollars in stablecoins transact on Ethereum, establishing it as the primary settlement layer for global dollar liquidity. Large holders are continuing to accumulate ETH, despite the prices being in a slump. Ethereum has faced a challenging beginning to 2025. As silver, gold, and U.S. equities continue their upward trajectory, ETH has experienced a decline of approximately 12% year-to-date, positioning it as one of the underperformers in the major asset class. Bitcoin has performed somewhat better, whereas the altcoin market has experienced a more significant decline.
Capital is shifting towards metals and conventional risk assets, even as Ethereum’s price remains stagnant. The market appears to be one that has diminished in interest. However, price performance by itself doesn’t provide the complete picture. Where the funds ultimately land On a typical day, Ethereum Mainnet handles approximately $90-100 billion in Stablecoin Transfers, significantly outpacing any other network. Leon Waidmann notes that the majority of the movement involves USDT and USDC being utilized for payments, treasury operations, and actual settlement.
Various chains are experiencing growth, with some offering lower costs or quicker transactions. However, stablecoin volume tends to concentrate in areas where trust, neutrality, and finality are of utmost importance. At this scale, users are prepared to pay elevated fees, as a failed settlement is simply not an option. ETH has consistently hovered around the realized price of accumulation addresses, which represents the average entry price for long-term whales. Rather than capitulating during downturns, these wallets have persistently increased their ETH holdings.
Whale profits have been compressed to nearly zero, a threshold at which many would typically consider reducing their exposure. In contrast, there is a notable rise in inflows to accumulation addresses. That requires a significant amount of patience! Large holders are holding their positions, unlike the typical behavior seen during an extended bear market. The surge in buying activity indicates a strong belief in Ethereum, suggesting that the token is currently undervalued. Despite a 12% decline year-to-date, Ethereum continues to facilitate daily transactions of $90-100 billion in stablecoins. Increased whale accumulation at the cost basis indicates a strong sense of confidence among traders.