Ethereum Network Activity Hits Yearly Peak as Traders Flock Back Despite Price Dip
Ethereum's network activity has surged to its highest level in a year, with daily active addresses reaching 841,100, according to market analyst Ali Martinez. This milestone signals renewed trader interest in ETH, even as the cryptocurrency experiences price volatility. The growing participation suggests strong underlying demand for Ethereum, potentially setting the stage for a bullish reversal. As of August 10, 2025, the market watches closely to see if this surge in activity will translate into upward price momentum.
Ethereum Active Addresses Surge to Yearly High Amid Price Correction
Ethereum's network activity has reached a significant milestone, with daily active addresses climbing to 841,100—the highest level in a year. Market analyst Ali Martinez highlighted this surge, noting it reflects renewed trader interest in ETH. The metric, which tracks addresses engaging in transactions, suggests growing participation despite recent price volatility.
The asset's price action tells a contrasting story. ETH dipped below $3,500 shortly after the address peak, currently trading at $3,505.99 with a 3.7% daily decline. This divergence between on-chain activity and price performance indicates a potential consolidation phase, where heightened network usage hasn't yet translated into upward momentum.
Such dynamics often precede market inflection points. While active addresses demonstrate robust underlying demand, the price correction may reflect profit-taking or broader market pressures. Ethereum's ability to sustain this level of network activity could lay groundwork for the next upward MOVE once market conditions stabilize.
Curve Considers Retreat From Ethereum Layer 2 Networks Amid Poor Revenue Performance
CurveDAO faces a strategic crossroads as internal data reveals underwhelming returns from its Layer 2 network deployments. A July 31 proposal highlights a stark disparity: while Curve's ethereum mainnet generates $28,000 daily, its 24 L2 networks collectively yield just $1,500—averaging $62 per chain.
The analysis suggests these scaling solutions, designed to enhance Ethereum's throughput, may not justify their operational complexity. "Very little returns while consuming lots of developer time," notes the proposal, emphasizing the high maintenance costs of these rapidly evolving networks.
This reckoning comes as Curve's crvUSD stablecoin and mainnet operations demonstrate substantially greater profitability. The protocol's Ethereum pools alone generate more daily revenue than 450 hypothetical L2 deployments at current rates.
Ark Invest Boosts Crypto Holdings with $47 Million in Coinbase and BitMine Purchases
Ark Invest deployed nearly $47 million into crypto-related equities last week, doubling down on its conviction in digital asset infrastructure. The investment firm allocated $29.8 million to Coinbase shares across its ETFs, with flagship fund ARKK leading the charge at $22.6 million. This buying spree came despite COIN shares plunging 16.7% on Friday after disappointing quarterly results.
The same trading session saw Ark snap up $11.6 million in BitMine Immersion Technologies through ARKK, adding to earlier $35.3 million purchases disclosed earlier in the week. BitMine now controls 625,000 ETH - the largest public Ethereum treasury - with plans to stake 5% of circulating supply. The stock nonetheless fell 8.6% Friday, extending monthly losses to 31%.
Corporate treasuries and ETFs are accelerating ETH accumulation at unprecedented rates. Standard Chartered reports institutional vehicles scooped up 1.26 million ETH (1% of supply) in just two months - nearly matching the 2 million ETH absorbed by Ethereum ETFs during the same period.
Ethereum Price Retreats to $3,500 Amid Bearish Pressure, But MVRV Suggests Potential Rebound
Ethereum's price briefly dipped below $3,500 on August 1, casting doubt on its recent bullish momentum. The altcoin had been flirting with the $3,900 level, making a breach of $4,000 seem imminent before the sudden reversal.
Despite the pullback, on-chain metrics hint at underlying strength. Analyst Burak Kesmeci points to Ethereum's MVRV ratio, which has remained in a downtrend since 2018, as evidence the asset may not be overvalued. The Market Value to Realized Value ratio—currently below the 3.7 threshold CryptoQuant considers overbought—suggests room for further upside.
The MVRV's prolonged decline contrasts with Ethereum's price appreciation, creating what some interpret as a bullish divergence. Market participants now watch whether ETH can reclaim higher support levels or if the correction has further to run.
Whale Dump Sparks Ethereum Volatility as $3,458 Support Test Looms
Ethereum faces a critical technical test after whales deposited $93.66 million worth of ETH across major exchanges. The 26,182 ETH transfer to platforms like Binance and Kraken coincided with overheated derivatives markets and spot seller dominance.
With 92% of addresses still profitable, market structure appears resilient despite the sell pressure. Analysts warn Leveraged positions in the $3,400-$3,500 range could amplify downside if funding rates reset violently.
The $3,458 support level now serves as a litmus test for ETH's near-term trajectory. Either a bullish consolidation above this zone or a cascade of liquidations awaits.
Over 1 Million Ethereum Withdrawn From Exchanges in Two Weeks
Ethereum's recent 13% pullback from its $3,940 high belies a deeper bullish trend. On-chain data reveals more than 1 million ETH has been moved off exchanges in the past fortnight, signaling strong accumulation by long-term holders.
The withdrawals coincide with Ethereum's 85% rally since late June. While some analysts view the correction as healthy consolidation, exchange outflows suggest investors are positioning for future gains rather than taking profits.
As the backbone of DeFi, stablecoins, and RWA tokenization, Ethereum's shrinking exchange supply could create structural support for prices. The network's fundamental utility continues to attract capital despite macroeconomic uncertainties.
