Despite a 28% decline in value this year, Ethereum continues to lead both in onchain transaction volume and the decentralized finance (DeFi) sector. The network currently supports around $43 billion locked in DeFi liquidity and holds more than $165 billion in stablecoins. In addition, approximately 55% of tokenized assets tracked across public blockchains are processed on Ethereum.
DeFi and tokenization dominance
According to data published by Token Terminal, the combined market capitalization of tokenized exchange-traded funds (ETFs) has surpassed $400 million, with Ethereum’s share standing out sharply at 76.9%.
Commenting on these developments, crypto analyst Tanaka emphasized Ethereum’s dominance among blockchains.
Tanaka highlighted that Ethereum still maintains a clear lead in onchain activities, especially given its prominent position in the DeFi ecosystem and tokenized asset markets.
Staking demand and validator growth
Even though the price of Ethereum has fallen this year, there is an uptick in staking activity. The amount of ETH staked on the network has climbed to 39.1 million coins, representing roughly 32% of total supply. The number of active validators now exceeds 896,000.
Currently, 3.49 million ETH are queued in the validator entry line. The wait time for entry surpasses 60 days, while only 7,424 ETH are lined up to exit. This trend indicates that large amounts of ETH are being staked despite weak price action.
Mini glossary: Validators are participants who approve transactions, create blocks, and secure the Ethereum network by locking up a specified amount of ETH.
Accumulating ETH and long-term investors
CryptoQuant’s latest figures reveal that ETH deposits into accumulation addresses surged to 248,400 on May 20, marking the largest single-day increase so far this year. Such wallets are often linked to long-term holders, whose tendency to sell remains limited.
From a technical perspective, trader Crypto Bullet notes that Ether’s weekly chart still displays a multi-year accumulation zone between $1,000 and $5,000. The analyst suggests that buyers have slowly built up positions in recent years, which has been fundamental in shaping the broader trend.
Assessing the long-term outlook, Crypto Bullet expects ETH could revisit the $1,000–$1,300 range, identifying this as a final “capitulation” region before the next cycle begins. For 2027–2029, price targets between $7,700 and $14,000 are being considered.
Tracking models and market outlook
Onchain analyst Rei analyzed Ether’s price using the two-year simple moving average (SMA) multiplier model. According to this framework, ETH recently dipped below its two-year average price level.
Market participants often regard this “x1 band” as a fair value area. By comparison, the upper bands, such as x1.42 and x2.65, are associated with price surges during bull markets. Currently, ETH’s price movement hovers near the chart’s lower boundary, marked in purple, corresponding to the 2Y SMA/2 band.
