Ethereum Leads Blockchain Capital Inflows With $475 Million Gain

Ethereum (ETH) has emerged as the leading blockchain network in terms of net capital inflows over the past month, attracting a substantial $475 million in new funds. This influx of capital underscores Ethereum's dominance as a primary backing layer for digital assets, outpacing all other blockchain platforms. The data, highlighted by on-chain watcher, indicates a significant shift in investor sentiment towards Ethereum, solidifying its position in the crypto market.

Arbitrum, another prominent blockchain, also experienced notable inflows, drawing over $400 million in net inflows during the same period. This makes Arbitrum the second most favored destination for capital. Additionally, other Layer 2 and sidechain setups such as Polygon PoS, Base, and Unichain saw smaller gains, reflecting active user engagement and capital movement within the broader Ethereum scaling ecosystem.

In contrast, several other well-known platforms faced significant net outflows. Berachain, for instance, saw the largest losses with users withdrawing over $550 million. Optimism’s OP Mainnet also experienced outflows exceeding $250 million. Major networks like Solana, Avalanche C-Chain, and Blast similarly faced a drop in liquidity, indicating a trend of investors reallocating their capital away from these networks. zkSync Era and WorldChain also posted negative net flows during this period.

Analyst Jelle, known online, recently pointed out encouraging signs in the TOTAL3 index, which measures the total market capitalization of all cryptocurrencies excluding Bitcoin and Ethereum. According to Jelle, the index is showing strong technical indicators of a developing bullish trend. The index recently retested a major support level near $720 billion, a zone that previously acted as heavy resistance in 2022. The fact that these old resistance levels have now flipped into solid support suggests sufficient buying interest to fuel further growth and upward momentum for altcoins.

The TOTAL3 index currently remains above its 200-week moving average, a widely respected long-term bullish indicator. The index has recently retested this crucial support area twice, each time followed by a healthy rebound, indicating underlying structural strength in the altcoin market. Looking ahead, analysts have identified the $1.15 trillion mark as the next major hurdle for the TOTAL3 index. If the index can decisively break out above this level, it could open the door for a run towards the $2 trillion mark, potentially by mid-2025. Such a move would demonstrate a growing market appetite for altcoins beyond just Bitcoin and Ethereum, supported by recent shifts in capital flow and strong technical setups at key support zones.