Ethereum Surges 6.15% as User Base and Network Activity Spike

Ethereum's latest price was $3718.22, up 6.152% in the last 24 hours. Ethereum is experiencing a surge in user base and network activity, driven by a rapid spike in daily address creation. Market analyst Peter noted that Ethereum recently registered more than 256,000 new daily addresses, a surge seen only twice before. First, ahead of the 2017 bull run and right before ETH set new all-time highs in 2021. History may not repeat, but it’s echoing loudly. Therefore, Ethereum is experiencing a burst of attention and on-chain engagement, signaling a potentially bullish setup, with momentum building for a possible breakout.

Meanwhile, a renowned market analyst recently predicted that Ethereum could soar to $13,000 by Q4 2025, calling the target both bold and achievable. Ethereum ETFs Continue Shining. In July alone, over $4B flowed into ETHA, the iShares Ethereum Trust ETF. That’s a new monthly record. Therefore, as more capital flowed into BlackRock’s ETHA in a single month than ever before, a strong case is being made for the Ethereum ETF ecosystem because it has crossed the threshold into legitimacy. This explains why ETH is targeting the psychological price as BlackRock advances plans to enable staking in Spot ETH ETF.

EigenLayer, an Ethereum restaking protocol, recently rolled out significant upgrades including multichain verification and advanced slashing, strengthening its role in cross-chain security and developer ecosystems. These upgrades enhance Ethereum's security scope, impacting staking flows and developer engagement, while aligning with institutional security needs, potentially boosting demand for ETH staking. EigenLayer has released a major upgrade, enhancing Ethereum security through multichain verification and advanced slashing mechanisms. This advancement significantly affects cross-chain security and developer ecosystems. The upgrade is part of EigenLayer's commitment to strengthening protocol reliability. Led by founder Sreeram Kannan, EigenLayer aims to increase operator accountability through slashing. The implementation allows actively validated services (AVS) to utilize Ethereum’s staked capital, thus expanding security surface for diverse applications. The enhanced security measures are expected to bolster Ethereum’s staking economy. As security increases, both AVS adoption and demand for ETH for staking are projected to rise, impacting the total value locked in Ethereum's network. Financial implications include potential shifts in staking flows and increased competition among Layer 1 and Layer 2 protocols. This may lead to broader adoption of EigenLayer's infrastructure by applications prioritizing rigorous security standards. Historical comparisons with Cosmos and Polkadot highlight EigenLayer's efforts to reduce protocol fragmentation. Unlike these ecosystems, EigenLayer synchronizes validator accountability and slashing, setting a new bar in blockchain security. Future outcomes could involve increased regulatory alignment as slashing enhances institutional staker confidence. As Sreeram Kannan, Founder of EigenLayer, stated, “Other than Ethereum and Cosmos, most proof-of-stake systems, including Solana, are running live without any slashing.” Technological implications include broader cross-chain collaboration, facilitated by EigenLayer’s expanded developer outreach and multichain support.

Ethereum remains the leader in real-world asset tokenization, valued at $7.53 billion across 313 assets, as major growth is observed in chains like zkSync Era and Solana. The continued expansion in real-world asset markets highlights Ethereum’s dominance and the rising challenge from emerging chains, impacting institutional liquidity flows and multi-chain strategies. Ethereum remains a dominant force in the real-world asset (RWA) tokenization market, leading with $7.53 billion across 313 assets. Other chains like zkSync Era and Solana are showing rapid growth, reshaping the competitive landscape. A total of nine major chains are involved in RWA tokenization. zkSync Era and Aptos gain traction, with Solana securing partnerships with major institutions, which contributes to its $550 million value in the market. The RWA market holds stable at $24.81 billion with just a 0.33% monthly decline. Ethereum’s significant lead is being challenged due to the impressive growth rates seen in Solana, which increased 218% this year. The total on-chain RWA value is $24.81B with 256 active issuers. Institutional partnerships, particularly those Solana has with BlackRock and Anchorage, highlight increased institutional interest. Stablecoins worth $257.38 billion bolster liquidity, aiding these tokenization initiatives. Chains like Algorand, Avalanche, and the XRP Ledger also participate. The RWA space’s stability contrasts with previous sporadic growth phases, largely anchored by Ethereum’s dominance. Future outcomes could include enhanced regulatory focus and technological advancements. Historical trends suggest continued market expansion, particularly as multi-chain solutions gain prominence and attract institutional interest.

The broader crypto market has been weighed down by Bitcoin’s drop, yet several analysts say Ethereum’s underlying momentum is still intact. The reasoning? A mix of sustained institutional buying, strong network activity, and a tightening supply picture — all of which they argue create a foundation for continued growth. At South Korea’s Eugene Investments, research points to a supportive backdrop for ETH, even if price action remains choppy in the short run. Their analysis credits ETF inflows and heightened on-chain engagement as key drivers keeping sentiment positive. While technical indicators hint at overbought conditions, the firm believes these signals don’t outweigh the broader bullish factors. Some market veterans are even using the volatility as an entry opportunity. Chinese trader Eugene Ng Ah Sio revealed that after nearly abandoning his position during the recent sell-off, Bitcoin’s recovery gave him the conviction to re-enter ETH with a long setup. He now sees the potential for Ethereum to revisit the $3,800–$4,000 range, setting his risk parameters just under $3,400. Institutional players are helping to reinforce this view. Companies such as SharpLink Gaming and BitMine Immersion Technologies have been steadily adding ETH to their holdings, a move that analysts say adds buying pressure and reinforces long-term confidence. The market may still be digesting recent swings, but for those betting on Ethereum’s future, the dip looks more like a momentary pause before the next push upward than a sign of fading strength.

Recent blockchain activity indicates substantial Ethereum accumulation by major institutional players, with notable transactions including an entity acquiring over 79,000 ETH in a single over-the-counter deal valued at hundreds of millions of dollars. This aligns with a broader trend of significant holdings growth, as more than 200 new addresses classified as megawhales, each possessing upwards of 10,000 ETH, have emerged on the network since early July.

Exchange-traded fund demand continues to significantly impact Ethereum's market structure. Specific data points reveal consistent multi-billion dollar inflows into prominent spot Ethereum ETF products over consecutive trading sessions. These instruments are increasingly becoming a primary channel for institutional participants seeking exposure, with holdings within these funds rising substantially within a one-month period.

Network fundamentals demonstrate positive developments supporting ecosystem vitality. Validator participation, crucial for network security and consensus, is experiencing growth, reinforcing the staking mechanism's effectiveness. Concurrently, transaction efficiency is improving across associated Layer 2 scaling solutions like Arbitrum, zkSync, and Optimism, which are handling increasing transaction volume thanks to moderating base layer gas fees.

Analysis of technical indicators reveals Ethereum navigating a critical consolidation phase following a rejection at a significant long-term resistance zone. Market observers note a neutral-to-mildly bullish bias in momentum indicators during this period, suggesting a potential resolution of the current range-bound activity. Market positioning appears strategically focused, with large-scale accumulation occurring even amidst this consolidation.

Wider market sentiment and potential external catalysts are under consideration. Discussions highlight the potential impact of evolving macroeconomic conditions, including shifts in central bank monetary policy expectations, on broader market liquidity and risk appetite. Furthermore, increased visibility of Ethereum in mainstream discourse, evidenced by mentions in various prominent non-financial public forums, signals growing recognition beyond the crypto-native environment. Historical performance trends during the month of August are also noted within market commentary.