A recent surge in Ethereum’s on-chain activity suggests a possible price rally by year-end, according to analysts. Institutional adoption and advancements within the Layer 2 ecosystem are key drivers behind this trend. Tom Lee, co-founder of Fundstrat, highlights the growing importance of Ethereum as a foundation for institutions and points to its potential to act as a liquidity engine through stablecoins. His insights suggest that we’re witnessing a major monetary reset similar to 1971’s move off the gold standard, but happening on-chain. With increased settlement activity and institutional involvement driving this trend, Ethereum is poised for significant growth in the digital asset landscape. This increased activity has impacted Ethereum’s standing in the crypto market, solidifying its role as a key settlement layer. The potential price targets for ETH are estimated to range from $5,500 to $16,000 by year-end, demonstrating the network’s significance within evolving market dynamics. Stablecoin solutions and advancements in Layer 2 platforms further bolster Ethereum’s ecosystem, increasing liquidity and scalability and attracting continued institutional interest. The growing number of daily active addresses supports this upward trajectory. Experts believe that Ethereum’s pivotal role will be evident in upcoming financial, regulatory, and technological shifts as the network continues to adapt and evolve.