Increased Ethereum Deposits: An Analysis of the Revealed Figures
In the rapidly evolving world of cryptocurrency, Ethereum (ETH) has emerged as a favoured asset among institutional investors. As of mid-2025, Ethereum has solidified its position in the institutional finance landscape, with notable increases in investment and adoption.
The Ethereum network's Total Value Locked (TVL) has reached $63.4 billion, with 35.6 million ETH staked, representing 29.5% of the total supply. This staking activity contributes to deflationary pressure, reducing the circulating supply of ETH. Ethereum hosts a significant portion of the stablecoin market, with USDC being pivotal in DeFi lending and DEX protocols, underlining Ethereum's role as a backbone for global finance.
Several factors are driving the trend of institutional investment in Ethereum. Anticipated regulatory approvals, such as the passage of the GENIUS Act in the U.S., could provide clarity and unlock trillions in liquidity for Ethereum-based platforms. Significant investments by companies like BlackRock, SharpLink Gaming, and Bitmine demonstrate growing confidence in Ethereum, often preceding broader market uptrends. The integration of Layer-2 technologies like zkSync and Arbitrum reduces transaction costs while maintaining security, further enhancing Ethereum's appeal to institutions. Many institutional investors are staking their ETH holdings to earn yield, reflecting a shift from speculative trading to strategic asset allocation.
Recent developments include Ethereum breaking through the key resistance level at $2,822, with the next major resistance levels, if it breaks above $3,013, being $3,301.5 and potentially $3,685.2. Ethereum has seen record-breaking inflows into spot ETH ETFs, with $908 million in net inflows in the week ending July 11, 2025. BlackRock's ETHA ETF attracted $675 million in inflows during the same period, raising its total assets under management to $6.29 billion. The weekly inflow rate of ETH ETFs is currently 1.6% of total ETF AUM, which is higher than the weekly inflow rate of Bitcoin ETFs.
However, a downside break of the current range could push ETH toward the support zones at $2,678 and $2,587, or in a more bearish scenario, down to the critical $2,380 key level. If the breakout fails, ETH could consolidate within the range of $2,822-$3,013, awaiting further market direction.
In conclusion, Ethereum's infrastructure dominance, coupled with regulatory tailwinds and increasing institutional engagement, are driving its status as a preferred asset for long-term investment. The number of wallets holding over 10,000 ETH have increased by 5-11% year-over-year, with a notable spike of 871,000 ETH accumulated in a single day-levels not seen since 2017. Over 3.8 million ETH has been withdrawn from exchanges, reinforcing the narrative of long-term accumulation. As Ethereum approaches another significant barrier at $3,013, it remains to be seen how the market will respond.
- Institutional investors prefer Ethereum (ETH) for its solidified position in the institutional finance landscape, with notable increases in investment and adoption, contributing to deflationary pressure and reducing the circulating supply.
- The Ethereum network hosts significant portions of the stablecoin market, such as USDC, which is crucial for DeFi lending and DEX protocols, underlining Ethereum's role as a backbone for global finance.
- Layer-2 technologies like zkSync and Arbitrum reduce transaction costs while maintaining security, further enhancing Ethereum's appeal to institutions.
- Many institutional investors are staking their ETH holdings to earn yield, shifting from speculative trading to strategic asset allocation.
- The increasing institutional engagement and infrastructure dominance of Ethereum foster its status as a preferred long-term investment, with an increase in the number of wallets holding over 10,000 ETH and a significant withdrawal of ETH from exchanges, reinforcing the narrative of long-term accumulation.
