Ethereum’s Active Users Soar 37%: Are Institutions and DeFi Driving Growth?
Unpacking the Factors Behind Ethereum's Rise: Examining the Role of DeFi and Institutional Investment
Key Points
- Ethereum’s active addresses have increased by 37%, surpassing March 2024 highs.
- President Trump’s WLFI suffered a $14.9M unrealized loss due to Ethereum’s recent decline.
Ethereum’s active addresses have seen a significant rise, indicating an increased network activity in the early part of 2025.
According to data from blockchain analytics firm IntoTheBlock, the network addresses rose to 670K last week, a significant increase from over 400K in March 2024.
Increased Adoption Despite Potential Dilution
Even though a single entity can open multiple addresses, potentially diluting the metric, the consistent growth indicates a substantial adoption of the network.
During the same period, Ethereum’s total value locked (TVL) soared from $65B to $98B, before settling at $84B.
TVL measures the amount of funds locked across the DeFi ecosystem.
For Ethereum, lending platform Aave and liquid staking platform Lido held the highest share of the chain’s TVL, accounting for over $60B.
Given these platforms’ popularity among institutions, it’s plausible that major players are driving the surge in network activity.
Impact of Ethereum’s Decline on WLFI
President Trump’s World Liberty Finance (WLFI) has been an aggressive buyer of Ethereum. However, the recent 8% decline of Ethereum to $3K led to a substantial unrealized loss for the firm, estimated at $14.9M.
The price of Ethereum has been bearish, though it has managed to hold the $3K support zone.
However, as this support has been tested multiple times, a potential downside breach shouldn’t be ruled out, especially if bearish sentiment continues post-FOMC meeting.
Conversely, a reversal could potentially boost Ethereum to the mid-range of $3.5K or the resistance area at $3.6K-$3.7K.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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