TLDR
- Grayscale Ethereum Trust (ETHE) had its first day of zero outflows since converting to a spot ETF
- Ethereum and its layer-2 networks saw increased activity recently
- Bitcoin ETFs continue to see inflows, with ARK’s ARKB leading at $35.4 million on August 12
- Ethereum ETFs experienced a slight inflow of $5.0 million overall
- Uniswap saw a record 8.65 million new addresses created on layer-2 networks in July
The Ethereum investment landscape is showing signs of change as the Grayscale Ethereum Trust (ETHE) recorded its first day without outflows since its conversion to a spot exchange-traded fund (ETF).
This development comes alongside increased activity on the Ethereum network and its associated layer-2 solutions.
ETHE, which has seen significant outflows since its launch as an ETF on July 23, 2024, managed to stem the tide on August 12. The fund had previously lost nearly $2.3 billion in Ether, representing more than 25% of its total holdings prior to conversion.
This stabilization occurred much faster than its Bitcoin counterpart, the Grayscale Bitcoin Trust (GBTC), which took almost four months to see its first day without outflows after conversion.
The pause in ETHE outflows coincided with a surge in activity across the Ethereum ecosystem. Decentralized exchanges (DEXs) on Ethereum saw a 12% increase in trading volumes over a 24-hour period. Similarly, Base, an Ethereum layer-2 network, experienced an 11% rise in trading activity.
Layer-2 networks, which aim to improve Ethereum’s scalability, have been particularly active. Uniswap, a popular decentralized exchange, reported a record 8.65 million new addresses created across layer-2 networks in July alone, nearly doubling the 4.93 million added in June.
Other layer-2 networks also showed strong user engagement, with Base and Arbitrum reporting 2.64 million and 1.37 million weekly active users, respectively.
The total value locked (TVL) across all Ethereum layer-2 networks now stands at $37.7 billion, while Ethereum’s mainnet holds $85 billion in TVL.
🤯It's mind-blowing how young most #Ethereum Layer 2s are — and yet, they've already achieved incredible milestones!👇
🔹#Base is just 1 year old but already has 2.64M weekly active users.
🔹#Arbitrum One, still under 3 years, has 1.37M.
🔹In just over a year, #Linea… pic.twitter.com/49x4rmL2TF
— Leon Waidmann | Onchain Insights🔍 (@LeonWaidmann) August 9, 2024
On August 12, these layer-2 networks collectively processed 298 transactions per second, approaching the all-time high of 322 TPS set on July 18.
In the broader ETF market, Bitcoin funds continue to attract investor interest. On August 12, Bitcoin ETFs saw net inflows of $27.8 million. ARK’s ARKB led the pack with a $35.4 million inflow, bringing its total inflows to $2.5 billion.
BlackRock’s IBIT and Grayscale’s mini ETF BTC also saw positive flows. However, some funds like Bitwise’s BITB and Grayscale’s GBTC experienced outflows. Overall, Bitcoin ETFs have accumulated $17.4 billion in total inflows since their inception.
Ethereum ETFs, while still in negative territory overall, showed a slight improvement with a net inflow of $5.0 million on August 12. The total outflows from Ethereum ETFs since their launch now stand at $401.4 million.
These developments in both the Ethereum network and its associated investment products suggest a dynamic and evolving landscape in the cryptocurrency space. As the market continues to mature, investors and users alike are watching closely to see how these trends will shape the future of digital assets and decentralized finance.
