Ethereum is reaffirming its status as the second-most impactful cryptocurrency. Strong decentralized exchange (DEX) activity, large inflows into spot exchange-traded funds (ETFs), and rapid growth in staking are powering this momentum. The network’s layer-2 solutions have accumulated a mind-boggling $70 billion in DEX activity over the last month. This remarkable number speaks to the depth of its dynamic ecosystem. Combined with the recent approval of spot ETH ETFs in the United States, this action further delineates Ethereum from its competitors. Solana and XRP, for example, are still awaiting regulatory clarity from the U.S. Securities and Exchange Commission (SEC).

Ethereum’s layer-2 solutions play a critical role as an engine of Ethereum’s success. While $70 billion is a massive number, that figure only serves to illustrate DEX’s network capability, efficiency, and scalability. Ethereum has taken the lead in the blockchain-based ecosystem with a $10 billion crypto market. On top of that, it takes the lead with a total value locked (TVL) of $66.6 billion. The TVL has increased by 6% over the last 30 days. This growth is fueled by tremendous increases from trailblazers like Pendle, Ethena, and Spark.

Allowing the first spot ETH ETFs to be approved in the United States represents a huge victory for Ethereum. It’s the only altcoin with that honor. Ever since May 16, these ETFs have been on a run of net inflows, bringing in $837 million. This influx of capital is a strong indication of institutional interest and confidence in Ethereum’s long term prospects.

Like a pump on Ethereum, some ETH prices rallied nearly 48% from May 7th to May 14th. Even with this unprecedented increase, crossing the $2,800 threshold continues to be a major obstacle for additional progress. Positive factors are supporting Ethereum's price. Exchange deposits, a metric for short-term supply, have recently dropped to an all-time low of around 16.33 million ETH.

Staking dynamics are additional forces feeding Ethereum’s bullish hype train. At the moment, nearly 28.3% of the total supply of Ethereum is locked in staking. This massive reduction in available supply would make more demand chase after less supply, pushing prices up. This growing staking activity paired with the efficiency of layer-2 solutions is helping to set up positive price movements.

Ethereum might lag behind with a 61% market share. As a comparison, its two main competitors, Solana and XRP, combined make up just 14% of the market. This stark difference highlights Ethereum’s competitive moat and the uphill battle other cryptos must climb to gain a meaningful slice of Ethereum’s market share.