Ethereum News Today: Ethereum sees 16% rise in new investor holdings since July driven by post-merge upgrades and DeFi growth

Ethereum has witnessed a significant surge in accumulation from new investors since early July, with collective holdings from fresh addresses rising by 16% over the period. This trend, highlighted by on-chain analytics platforms, indicates growing confidence in the blockchain’s long-term potential amid broader crypto market optimism. The shift in investor behavior is underscored by a marked increase in first-time buyers acquiring ETH, a pattern that has reversed earlier 2025 declines in such activity. Ethereum’s price has already breached $3,700, aligning with the uptick in demand from this demographic.

Data from Glassnode reveals a clear spike in Ethereum supply held by first-time investors, particularly over the past two weeks. This surge follows Ethereum’s transition to a proof-of-stake consensus mechanism in September 2022, which enhanced scalability and reduced energy consumption. Analysts attribute the renewed interest to Ethereum’s ongoing upgrades, including the upcoming Shanghai network changes, which address transaction costs and network congestion. The extended average holding period—now exceeding 90 days for new wallets—further suggests a shift toward long-term holding strategies, diverging from short-term speculative trading patterns.

The accumulation wave coincides with Ethereum’s entrenched dominance in the decentralized finance (DeFi) ecosystem. As the leading smart contract platform, Ethereum hosts a majority of decentralized applications, from lending protocols to NFT marketplaces. Emerging market participants are increasingly drawn to its mature infrastructure and robust developer community, supported by user-friendly wallets and cross-border payment solutions that lower entry barriers. This accessibility has amplified Ethereum’s appeal for non-technical users, aligning with macroeconomic trends that position the asset as a store of value. Post-merge “burning” mechanisms, which periodically reduce supply, have also bolstered its scarcity profile, resonating with risk-tolerant investors amid global caution toward high-yield assets.

While Ethereum’s growth trajectory appears resilient, challenges remain. Regulatory uncertainties in key markets and competition from alternative layer-1 networks—such as Solana and Cardano—pose risks to its dominance. These platforms offer Ethereum-like functionalities at lower costs, potentially attracting users seeking cheaper transaction fees. However, Ethereum’s first-mover advantage and foundational role in the crypto market ensure its continued relevance. The 16% rise in new holdings since July reflects a broader narrative of crypto maturation, with both institutional and retail investors prioritizing digital asset exposure. As Ethereum advances its roadmap to enhance interoperability and enterprise adoption, its ability to adapt to evolving regulatory and technological landscapes will be critical to sustaining accumulation momentum.

Market observers are closely monitoring key resistance levels to gauge whether the current trend propels Ethereum toward 2024 highs. The sustained accumulation indicates a focus on fundamental value creation over speculative trading, signaling a maturing market. With Ethereum’s roadmap emphasizing scalability and enterprise integration, the platform is well-positioned to retain leadership in the smart contract space. The coming months will test the sustainability of this surge, particularly as macroeconomic conditions shift and competition intensifies. For now, the influx of new investors underscores Ethereum’s enduring role as a bridge between traditional finance and decentralized ecosystems, cementing its position as a cornerstone of the crypto market.