Ethereum’s recent price surge reflects more than just capital rotation away from Bitcoin. The network’s underlying structure has undergone significant improvements, setting the stage for sustained growth. Key factors include rising DeFi activity and increasing institutional adoption, leading to a healthier ecosystem with reduced gas costs and higher usability. 2021 saw Ethereum reach its peak price around $4,800, yet gas prices spiked at that time, hindering further expansion. Now, with EIP-1559 and Layer-2 scaling, the network is tackling congestion efficiently, enabling smoother transactions without skyrocketing fees. This change alone offers a significant boost to Ethereum’s potential for sustained price growth. The result is a more resilient network that can handle surging demand without impacting user experience. As seen in recent data, gas prices remain low, further bolstering confidence in the platform and fueling its value.
Ethereum’s DeFi revival has been instrumental in this momentum. With over $100 billion locked in DeFi protocols, Ethereum serves as the foundation of decentralized finance. The rise in ETH price, coupled with these lower fees, creates a positive feedback loop that attracts even more capital into the ecosystem. This dynamic suggests that Ethereum is less about speculation and more about a maturing network with real-world use-cases driving its value.