Ethereum News Today: Institutions Drive Ethereum's ETF Surge and 4-Year Network Activity High

Ethereum's network activity has surged to historic levels, with daily transactions hitting 1.6–1.7 million, a four-year high, driven by growing decentralized finance (DeFi) adoption and institutional demand. This marks a significant breakout from a long-standing range of 900,000–1.2 million transactions per day, according to CryptoQuant analyst Darkfost. The rise is attributed to Ethereum's role in powering DeFi applications, lending platforms, and tokenized asset issuance, with total value locked (TVL) in Ethereum-based DeFi protocols reaching $90.62 billion in July 2025, a 45% increase from earlier in the year. The surge in on-chain activity aligns with Ethereum's price recovery, which has pushed the token past $4,300 after a mid-September dip below $3,900.

Institutional interest in Ethereum has intensified, with spot ETF inflows reaching record levels. Over $674 million flowed into Ethereum ETFs in two days alone, led by Fidelity ($202 million) and BlackRock ($154 million). Cumulative ETF holdings now total 12.15 million ETH, a 250% increase since April 2025. BlackRock's recent purchase of $547 million in ETH, outpacing its Bitcoin acquisitions, underscores institutional confidence in Ethereum's long-term potential. Additionally, Ethereum's dominance over Bitcoin is evident in trading volume metrics, with Ethereum's spot trading volume surpassing Bitcoin's for the first time since June 2024, reaching $25.7 billion compared to Bitcoin's $24.4 billion.

Ethereum's price trajectory has been bolstered by whale accumulation and reduced sell pressure. On-chain data from Nansen shows a 50% spike in daily active addresses, rising from 345,406 to 593,637 in four days, while sell volume outpaced buy volume in a 24-hour period, with $90 million in sell transactions versus $78.15 million in buys. Despite this, large-scale investors added $1.73 billion worth of ETH during a late-September selloff, indicating structural confidence in the asset. Analysts like Crypto Jelle have highlighted Ethereum's classic breakout pattern, suggesting a potential rise to $7,700 in the coming months, with long-term targets as high as $10,000 if ETF flows and scaling upgrades like Dencun continue to support adoption.

The interplay between Ethereum and Bitcoin ETFs has further shaped market dynamics. Ethereum's ETF cycle has lagged Bitcoin's by approximately six months but delivered a slightly stronger gain (+215% vs. Bitcoin's +198%) during its rally from $1,519 in April to $4,739 in August 2025. However, Ethereum has yet to face sustained outflows, unlike Bitcoin, which saw price corrections following multi-week outflow periods. Current inflows for Ethereum ETFs have continued for 14 consecutive weeks, with analysts warning that a shift to outflows could signal a market top, as seen in Bitcoin's recent drawdowns.

Market sentiment is further reinforced by Ethereum's growing utility in tokenized assets and stablecoins, with analysts forecasting that institutional staking upgrades and reduced transaction costs post-Dencun could drive long-term adoption. The Ethereum Foundation has also noted challenges in aligning community narratives, as traders previously described the platform as lacking a unifying mental model during periods of stagnation. However, the recent surge in on-chain activity and ETF demand suggests a reinvigoration of Ethereum's role as a foundational blockchain for real-world applications.

Source: [1] Ethereum Network Hits Record 1.7M Transactions (https://coinpedia.org/news/ethereum-network-hits-record-1-7m-transactions-analysts-eye-rally-to-7700/) [2] Ethereum Price Forecast - ETH-USD $4,303 (https://www.tradingnews.com/news/ethereum-price-forecast-eth-usd-climbs-to-4303-usd-as-etf-inflows-and-on-chain-boom-target-10k-usd) [3] Ethereum Daily Transactions Just Hit Its Highest Level (https://cryptorank.io/news/feed/2b7c0-ethereum-daily-transactions) [4] Tracking ETF Inflows Against ETH and BTC Price Moves (https://dropstab.com/research/crypto/ethereum-vs-bitcoin-etf-inflows-and-market-reactions) [5] BTC and ETH ETF Inflows Surge (https://beincrypto.com/will-return-of-etf-inflows-lift-btc-eth-prices/) [6] ETH vs BTC Dominance Shift 2025 (https://www.cryptopiannews.com/eth-vs-btc-dominance-shift-2025-altseason-guide/) [7] Ethereum's 72% Surge vs Bitcoin (https://www.xt.com/en/blog/post/ethereums-72-surge-vs-bitcoin-a-potential-shift-to-altcoin-season) [8] Ethereum News: Is U.S. Institutional Buying Driving (https://www.coindesk.com/markets/2025/07/18/ether-demand-driven-by-institutional-buying-in-us-coinbase-premium-shows) [9] Coinbase Ethereum Premium Emerges (https://www.thecoinrepublic.com/2025/07/19/coinbase-ethereum-premium-emerges-why-eth-is-primed-for-4k-breakout/) [10] Coinbase Premium Signals Aggressive Ethereum Accumulation (https://xbt.market/2025/07/18/coinbase-premium-signals-aggressive-ethereum-accumulation-institutional-demand-accelerates/)