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Is Ethereum’s $4,000 Target Still in Play After Q2 Gains and Growing ETH Staking? - Crypto News Flash
Ethereum (ETH) is getting attention again after a strong 33.47% surge in its second quarter. This has sparked speculation that it could be on track to reclaim the $4,000 mark by October. At the moment, ETH is trading steadily above $2,000, hovering around $2,462. Its daily trading volume has jumped by 92.1% to hit $15 billion.
A big part of this renewed interest stems from Ethereum’s transition to a proof-of-stake (PoS) network, which officially went live during the Merge back in September 2022. Since then, staking has become central to ETH’s long-term growth, and it’s ramping up fast.
ETH Staking Growth
Sentora reported on an X post that in the past two weeks, over 500,000 ETH have been added to staking. Why is this important? It’s a sign that users aren’t just trading, they’re locking in for the long haul. At the same time, with around 19% of ETH held long-term and steadily disappearing from circulation, the supply is tightening, making price swings sharper and market conditions more reactive.
With all that ETH being staked, attention is turning toward who’s actually holding the keys. Right now, Lido controls about 25.6% of all staked ETH, roughly 8.7 million coins. Binance and Coinbase aren’t far behind, with 7.5% and 7.4% respectively. Combined, these three giants control nearly 40% of Ethereum’s staked supply. That’s raising some eyebrows in the community, as such a heavy concentration could create governance risks or bottlenecks.
To complicate things, the growing demand for liquid staking tokens like stETH is pushing up borrowing costs on DeFi platforms, tightening liquidity, and nudging users toward alternative strategies.
Q2’s performance puts Ethereum in elite company, ranking just behind its breakout years of 2020 and 2019, when it saw gains of 69.62% and 102.25% respectively. As Q3 kicks off, the Ethereum community is cautiously optimistic, watching for signs that the rally could continue into the fall.
On-Chain Activity
Ethereum’s weekly active addresses hit a record 20.2 million back in May, up a massive 52.71% from the week prior. Crypto News Flash recently highlighted that on June 25, the network processed an impressive 1,750,940 confirmed transactions in a single day. That’s the third-highest daily transaction count in Ethereum’s history since launching.
The only time we’ve seen higher activity was back in January 2024, when Ethereum hit a record-breaking 1.9 million transactions in just one day. This surge is yet another sign of increasing user engagement and network demand in Ethereum that could push it to $4000.
And the derivatives market? It is heating up, too. Trading volume soared by 139.84% to nearly $50 billion, while open interest climbed 1.78% to $32.06 billion. Options open interest also grew by 3.02%, reaching $6.33 billion. These metrics paint the picture of a network not just bouncing back, but maturing and positioning itself for a potential breakout in the months ahead.
To top it all off, Vitalik Buterin, Ethereum’s co-founder, introduced an approach to digital identity called “pluralistic identity”, a system designed to protect user privacy while ensuring fair access to digital spaces. The core idea: no single authority should have control over issuing or managing digital identities. He advocates that identity should be decentralized, diverse, and inclusive.
Buterin has emphasized the importance of incorporating stronger privacy features into Ethereum, particularly as the network expands and its applications become more prevalent in real-world finance. His push for “pluralistic identity” is about shaping a future where people can interact freely, privately, and on their terms.
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