Ethereum News Today: Ethereum Surges 17% as Institutions and DeFi Fuel Demand

Ethereum (ETH) has surged 17% in a single week, driven by robust decentralized exchange (DEX) activity, institutional accumulation, and growing total value locked (TVL) in its ecosystem. DEX trading volume on Ethereum hit an all-time high of $140 billion in August 2025, while total transaction volume across the network reached $320 billion in the same period, reflecting heightened demand for decentralized finance (DeFi) and non-custodial tradingEthereum Fundamentals Surge as DEX Volume Hits $140B Peak^[3]. Active Ethereum addresses climbed to approximately 16.77 million, nearing monthly highs, as institutional investors and corporate treasuries added significant ETH holdings. BitMine, the largest corporate Ethereum holder, now controls 1.87 million ETH, while SharpLink recently expanded its reserves by 39,000 ETHEthereum Fundamentals Surge as DEX Volume Hits $140B Peak^[3].

Ethereum's TVL stands at $92.6 billion, approaching the previous peak of $108.8 billion from the 2021 bull cycleEthereum Fundamentals Surge as DEX Volume Hits $140B Peak^[3]. This growth is underpinned by rising institutional demand and inflows into spot Ethereum ETFs. For instance, U.S.-listed ETFs recorded multi-billion-dollar net inflows in July and August 2025, with August alone on track to exceed $4 billionEthereum Fundamentals Surge as DEX Volume Hits $140B Peak^[3]. Analysts attribute the surge to Ethereum's expanding utility in DeFi, including cross-chain protocols and decentralized applications, which have drawn both retail and institutional capital.

Corporate treasuries have further solidified ETH's bullish narrative. A total of 69 companies added over 4.1 million ETH ($17.6 billion) to their reserves, representing 3.4% of Ethereum's total supplyEthereum Fundamentals Surge as DEX Volume Hits $140B Peak^[3]. This accumulation, coupled with rising TVL and DEX activity, has led analysts like Standard Chartered to raise their year-end price target for ETH to $7,500, citing sustained institutional demand and ETF flowsEthereum Fundamentals Surge as DEX Volume Hits $140B Peak^[3]. However, market participants remain cautious about September's historically choppy conditions, even during bull phasesEthereum Fundamentals Surge as DEX Volume Hits $140B Peak^[3].

Ethereum's network activity also highlights its competitive edge against rivals. While BNB Chain has surpassed Ethereum in DEX trading volume, Ethereum maintains a dominant TVL of $122 billion compared to BNB's $9.34 billion. Additionally, Ethereum's active address count of 376,000 remains a key metric for on-chain adoption. The network's efficiency in processing over 50 million monthly transactions underscores its scalability, despite higher gas fees compared to BNB ChainEthereum Fundamentals Surge as DEX Volume Hits $140B Peak^[3].

Looking ahead, Ethereum bulls face a mix of opportunities and risks. While institutional accumulation and TVL growth support a bullish case, competition from faster, lower-cost blockchains like BNB Chain and Solana could temper momentumEthereum Fundamentals Surge as DEX Volume Hits $140B Peak^[3]. Nevertheless, Ethereum's first-mover advantage in DeFi, coupled with ongoing upgrades and ETF adoption, positions it as a critical asset for long-term capital allocation.