Ethereum has been one of the standout performers in the crypto market this year. Since mid-April, its price has surged by 200 %, supported not only by speculation but also by structural improvements in the network.

Network demand and fee revenue

The primary driver has been a steady rise in network demand. According to The DeFi Report, roughly 75 % of Ethereum’s revenue now comes from priority fees and MEV (Maximal Extractable Value). This reflects a willingness among users and applications to pay a premium for faster execution, underscoring strong utilization of the blockchain.

Stablecoins as the foundation

Stablecoins remain a cornerstone of Ethereum’s ecosystem. The combined supply of USDT and USDC on the network has reached $156 billion — up 14 % since July and a yearly high. This confirms Ethereum’s role as the leading platform for dollar-backed tokens and on-chain settlements.

Institutional accumulation

Institutional interest is also growing. BitMine Immersion Technologies has expanded its holdings to 1.7 million ETH, valued at over $8 billion, making it the largest corporate holder. Such participation brings long-term stability and enhances Ethereum’s profile as an investable asset.

Risks and volatility

Still, volatility persists. A recent $550 drop in ETH triggered liquidations of over $110 million in leveraged positions. Yet Ethereum continues to outperform the market, gaining 5 % in a week, 18 % in a month, and 62 % year-to-date.

Scaling with Layer-2

Scalability is being addressed through Layer-2 solutions. Coinbase Base, Arbitrum, and Worldcoin are all approaching record transaction volumes, easing congestion on Layer-1 and reducing fees.

Security and trust

The Ethereum Foundation is investing in long-term resilience through its Trillion Dollar Security initiative. Planned steps include a public vulnerability database and clearer transaction previews, designed to make Ethereum safer and more transparent for mainstream use.

Conclusion

Ethereum’s 200 % rise since April is not merely a speculative rally. It reflects deeper network fundamentals, stablecoin-driven liquidity, and institutional adoption. If these trends continue, Ethereum could cement its role as the backbone of the digital economy for years to come.

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