• Ethereum Network had a successful quarter, driven by Liquid staking, regulatory clarity, and fiat interest.
• The token’s self-custody pushed its market cap up 3% quarter-over-quarter while other altcoins declined by 23%.
• ETH could reclaim the $2K level soon enough due to its “boredom” in comparison to more “shiny” altcoins.
Ethereum Network Outperforms in Q2
The Ethereum Network saw a successful quarter, driven by Liquid staking, regulatory clarity, and fiat interest. According to an on-chain data tracker Messari report, the alpha altcoin outperformed its competitors and added 3% to its market cap quarter-over-quarter compared to an average decline of 23% for other featured L1s.
Altcoin Meme Craze Contributes
The meme coin craze for tokens like PEPE also contributed to the Network’s quarterly results as well as BlackRock filing for a spot Bitcoin ETF which raised much speculation about Ethereum being the next most likely candidate for a spot ETF. Enabling withdrawals reduced staking risks on Ethereum and gave it a boost when combined with liquid staking.
Liquid Stakes Over 50% of ETH Stake
By the end of the quarter, over half of ETH stake was in liquid form including Coinbase cbETH which had seen an increase of 25% year over year. This indicates that Liquid stakes are gaining significant attention within the Ethereum ecosystem and is boosting both investor confidence and liquidity in DeFi projects.
ETH Could Soon Reach $2000 Level Again
Since dropping from its $2100 heights in mid April, ETH has been flying relatively under the radar at just under $1890 on July 21st. But given that it has had a successful quarterly performance with no hype around price action could help it reclaim the psychological support level of $2000 soon enough according to another on chain data provider Santiment who indicated that ETH was “boring” compared to more “shiny” altcoins like XRP which has pushed 70% since its win against SEC on July 13th.
On Chain Data Factors Supporting Bullish Price Action
Not only does this indicate potential bullishness for ETH but also other factors such as self custody which could push it further over the psychological support level significantly contribute to this outlook as well. These developments are supported by increasing levels of liquidity among investors due to increased trust and security provided by enabling withdrawals from staking protocols together with liquid staking tokens (LSTs).