Ethereum's Layer 2 Interactions Surge 18.43%, TVL Hits $86.63 Billion

Ethereum's latest price was $2509.38, down 0.81% in the last 24 hours. Ethereum’s ecosystem is experiencing a surge in user engagement, with Weekly Active Addresses hitting a record 17.4 million. This increase is driven by a significant rise in Layer 2 interactions, which have spiked by 18.43%, amplified by a 7.55x multiplier effect. This trend indicates rapid adoption of scalability solutions, which not only alleviates network congestion but also enhances user experience, attracting both retail and institutional participants. While cross-chain activity has slightly declined, the core Ethereum network’s robust engagement highlights renewed interest and confidence in its long-term viability.

Ethereum’s Total Value Locked (TVL) recently reached $86.63 billion, reflecting a 1.28% increase within 24 hours. This steady capital influx into Ethereum-based decentralized finance protocols demonstrates sustained investor confidence despite broader market volatility. The growth in TVL is primarily driven by increased participation in lending, staking, and liquidity provision, which strengthens Ethereum’s fundamental demand. As DeFi continues to mature, Ethereum’s role as the preferred settlement layer solidifies, providing critical support to both its price and ecosystem expansion.

Recent data reveals a negative Exchange Netflow for Ethereum, with a 1.59% decline in ETH balances across major exchanges. This outflow trend indicates that users are increasingly withdrawing ETH to self-custody wallets or locking assets in staking contracts, thereby reducing the available supply on exchanges. Such a reduction in liquid supply can diminish immediate selling pressure and create conditions favorable for price appreciation. If sustained, this supply squeeze could amplify price volatility, enabling even modest demand surges to trigger significant upward moves.

Ethereum’s ecosystem is demonstrating robust growth and bullish momentum, driven by increased DeFi participation, strong Layer 2 adoption, and shrinking exchange supply. The formation of an inverted head-and-shoulders pattern near $2,824 highlights a potential breakout point that could define the next phase of price action. While trader optimism is high, caution is warranted given the compressed volatility and crowded long positions. Overall, Ethereum remains well-positioned for sustained growth, provided it can overcome the critical resistance level and maintain on-chain activity trends.

Ethereum’s surge in Layer 2 interactions and Total Value Locked underscores its dominant position as the leading smart contract platform. The growing user engagement, increased DeFi inflows, and declining exchange balances highlight renewed investor confidence and on-chain momentum for Ethereum. The United States-based spot Ethereum ETFs have managed to turn their fortune around over the past few weeks, with a net inflow of $25.22 million on Friday, June 6. This latest daily performance marked the 15th straight day of capital inflows for exchange-traded funds. BlackRock’s iShare Ethereum Trust accounted for the majority of the inflows on Friday, posting $15.86 million to close the week. Grayscale’s Ethereum Mini Trust was the only other US-based Ethereum ETF fund to record any activity, with a total daily net inflow of $9.37 million. This $25.22 million single-day performance brought the total net weekly inflow to a little over $281 million in the past week, representing the fourth consecutive week of capital influx for the Ethereum-based products. In the previous trading week, the Ethereum ETFs posted a similar $285.84 million total net inflow. Ultimately, these positive performances show a change in the way investors are looking at Ethereum at the moment.