Ether witnesses a striking start this year, following Layer 2 growth
2025-01-07
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Ethereum has shown a striking start this year as its price is hovering around $3,600. This is the result of investors showing an unconventional interest in accumulation regardless of discordant market indications. 
Mainly in Layer 2 adoption, Ethereum has witnessed significant changes in its ecosystem that will certainly impact its price path in the near future. Having more than 80,000 ETH which is estimated at around $300 million taken from exchanges to private wallets in the last week, as per the data from CryptoQuant. 
This clearly shows a change in the behavior of the investors. At the same time, the giant whale addresses which hold around 10,000 to 100,000 ETH have depressed their positions, average investors holding between 1,000 and 10,000 ETH have impacted this accumulation trend to its extent. The future of ETH supported by L2 
The Coinglass data reveals net outflows of about $38.1 million in the past week implicating an inconsistency between institutional and retail attitudes; the shift happens even though ETH ETFs are witnessing these trends. 
The future growth of Ethereum is mainly supported by its boosting Layer 2 ecosystem. Now holding over 4.5 times the transaction volume of the Ethereum mainnet, transaction activity on L2 networks has attained unheard-of levels. 
More than 10 million addresses have linked with L2 solutions in the last week, mainly driven by Base, Arbitrum, and Optimism. If we compare it to Layer 1, it was 1.96 million. Arbitrium takes the leading position, with $6.35 billion; After this comes $3.5 billion; the L2 ecosystem today boasts over $11 billion in stablecoins. 
This increasing foundation of liquidity points to growing faith in Ethereum’s scaling abilities. The latest market activity has witnessed $39.24 million in futures liquidations in the past day, having short positions estimated for $28.45 million of the total, proposing a press on bearish positions. A slight bearish trend 
Santiment data reveals that regardless of the price increase, an indication of a slightly bearish bias in social mentions is witnessed. Also, such revolutionary indicators have often led to price growth. 
At the time of writing, the price of Ethereum is hovering around $3,678.28 and is 0.48% up in the past 24 hours. This has pushed the overall market capitalization to $443.1 billion. As per the community sentiment report of CoinMarketCap, among 355.2k votes, 67% show a bullish trend and 33% show a bearish trend.  © Todayq News