At first glance, Ethereum might appear underwhelming, but there’s a deeper narrative that unfolds beyond the surface. As the markets remain preoccupied with tenuous short-term price fluctuations, Ethereum is asserting its dominance in on-chain activity and drawing in significant players. The gap is widening, and it’s important to consider the reasons behind it. Ethereum’s mainnet continues to dominate the DeFi landscape, commanding approximately 68% of the total TVL, significantly outpacing all other chains. Even amidst the downturn of 2022, its share never completely faltered. The network experienced a decline to approximately 45% before staging a recovery throughout 2024 and into 2025.
While the data highlights Ethereum’s L2s such as Arbitrum, Optimism, and Base, its share surges beyond 70% when these competitors are excluded. Tom Lee’s Bitmine has staked 74,880 ETH, which is valued at $219 million. There is significant confidence in the long-term growth of Ethereum. Meanwhile, SharpLink Gaming redeemed 35,627 ETH – indicating that institutional moves are becoming increasingly active and strategic. This aligns with the broader trend. Ethereum’s dominance in the DeFi space remains robust, even as capital shifts around. The major players are adapting to operate within the existing framework.
While Ethereum’s fundamentals provide a solid foundation, the price action is being swayed by developments in the derivatives market. In 2025, ETH Futures activity surged to unprecedented heights. Binance reported an impressive $6.7 trillion in ETH Futures volume, nearly doubling the figures from the previous year. Other exchanges such as OKX, Bybit, and Bitget mirrored this trend, indicating that speculation is gaining momentum. The disparity is quite notable. Analyst Darkfost on X reports that for every $1 in spot ETH, approximately $5 is funneled into Futures.
This degree of leverage clarifies why price fluctuations appear erratic and unpredictable, despite Ethereum’s fundamentals staying intact. Ethereum dominates the DeFi landscape, holding 68% of the total value locked and reaching 70% when including Layer 2 solutions. ETH’s price is influenced by unprecedented leverage, shedding light on the volatility and disconnection within the market.