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Ethereum‘s (CRYPTO: ETH) most recent breakout isn’t just a product of ETF hype, it’s backed by a surge in DeFi activity and a rising structural shift, according to a 10x Research report.
What Happened: With total value locked (TVL) in Ethereum-based DeFi protocols reaching $84 billion, the highest since January 2022, the report argues Ethereum is entering a new growth phase powered by real usage, not short-term hype.
The report emphasizes that “internal smart contract calls,” a less visible but crucial on-chain metric have increased sharply, reflecting deeper interaction between DeFi protocols.
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This growth points to rising composability and utility on Ethereum, extending far beyond speculative trading.
“DeFi activity is quietly laying the groundwork for Ethereum’s next phase,” the report states. “ETF flows may catch headlines, but smart contract calls and long-term positioning tell the real story.”
Ethereum’s recent rally has been reinforced by $3 billion in ETF inflows this July, $2.2 billion of which arrived in just the past week.
The GENIUS Act, set to introduce regulatory clarity later this year, is seen as another catalyst supporting Ethereum’s momentum.
Meanwhile, institutional adoption is mirroring the Bitcoin playbook.
Companies like Bitmine (AMEX:BMNR) and Sharplink (NASDAQ:SBET) now hold over $1.1 billion in ETH each on their balance sheets, with Bit Digital (NASDAQ:BTBT) holding another $380 million.
These firms have seen their market capitalizations surge as they pursue Strategy (NASDAQ:MSTR)-style accumulation strategies raising capital by issuing equity above net asset value to acquire more ETH.
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Why It Matters: One striking insight from the report: Ethereum’s price action is increasingly driven by Asian markets.
Over the past month, 66% of Ethereum’s gains occurred during Asian trading hours, with activity lagging during European sessions.
Korean exchanges like Upbit have reported XRP (CRYPTO: XRP) and ETH trading volumes exceeding billions daily.
“Ethereum isn’t just riding macro tailwinds,” said the report’s authors. “It’s gaining strength through structural changes: a broader user base, real-world interaction, and growing institutional commitment.”
