Growth Signals
Despite its price underperformance and regulatory uncertainty, Ethereum (ETH) is showing signs of growth, according to market intelligence firm IntoTheBlock.
- Increased Volume: The amount of ETH transferred on its mainnet has reached its highest point since May 2022.
- Layer-2 Adoption: The amount of ETH on layer-2 scaling solutions recently surpassed 10 million for the first time.
- Layer-2 Activity:
Activity on layer-2s Arbitrum, Optimism, and Base is over twice the rate of Ethereum’s mainnet.
Regulatory Uncertainty
The Securities and Exchange Commission (SEC) has yet to clarify whether Ethereum is a security or a commodity, adding to the regulatory uncertainty surrounding the asset.
Price Performance
Ethereum has lagged behind Bitcoin and the S&P 500 in terms of price performance this cycle. However, IntoTheBlock notes that on-chain data indicates continued growth.
Conclusion
Despite its price challenges and regulatory uncertainty, Ethereum’s on-chain activity suggests that the network is growing. Layer-2 adoption and increased volume indicate that the platform is attracting users and developers. However, the SEC’s stance on Ethereum’s classification remains a potential risk factor.
