Ethereum Growth Supported by ETFs and Popularity of Layer 2 Solutions
Date: 2025-08-12 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
Last month, spot ETFs on Ethereum recorded a record capital inflow of $5.43 billion. After a short pause in early August, investments in these funds resumed, which became an important factor in the growth of the cryptocurrency’s value. Experts note that an additional incentive for increasing interest was the second-layer (L2) solutions that improve the network’s scalability and reduce fees, making Ethereum more attractive to private and institutional investors.
The actions of small public companies, which are increasingly including ETH in their balance sheets, also played a significant role in strengthening the cryptocurrency’s position. According to The Block, the total reserves of such companies exceeded 966,000 ETH in July. This not only supports demand, but also reduces the number of coins available on the open market, which has a positive effect on prices.
However, analysts warn that if the inflow of funds into the ETH-ETF slows down, the quotes may decrease. If investment flows weaken or go into negative territory in the coming weeks, there is a high probability of a rate correction. According to experts, even the growth of activity in the Ethereum network may not be enough to sustainably maintain the price above $4,000 without additional support from major players.
It is worth noting that July turned out to be a record month for the number of transactions in the Ethereum network in its entire history - 46.67 million operations were made. Such a jump occurred shortly after the developers increased the gas limit per block to 45 million, which made it possible to process more transactions per unit of time and increased the overall network throughput.
The market is currently in a state where fundamental and technological factors act in the same direction, supporting interest in Ethereum. But experts advise investors to closely monitor the dynamics of capital inflows into exchange-traded funds and the activity of large participants, since these indicators can determine the price trajectory in the coming months.
Thus, the current rally in Ethereum is based on a combination of record ETF inflows, growing L2 adoption, and public company activity, which creates favorable conditions for further strengthening of the asset. However, if one of these factors declines, the market may face a correction and the price may face a serious test of strength.
