The ETH Report for Q2 just dropped and it's bullish.
10 Insights 👇
1) Stablecoin Dominance
Stablecoin supply on L1 hit $137B —51% of stablecoins and growing.
BUILD (Blackrock): +56%
PYUSD (PayPal): +19%
@fundstrat calls this crypto's ChatGPT movement.
All on Ethereum.
2) DeFi Credit All Time Highs
Active loans on Ethereum + L2s surged to $23.9B — up 43% QoQ, nearly 2x YoY.
🟣 @maplefinance: +291%
🟣 @eulerfinance: +174%
🟣 @aave: +46%
This is real capital market growth.
Ethereum is the place crypto stores its loans
3) Real World Assets Are Coming Onchain
RWAs on Ethereum L1 surged 48% in Q2, hitting $7.5B.
- U.S. Treasuries: +58%
- Commodities: +24%
- Alt Assets: +40%
Stablecoins, Loans, and now real world assets.
Ethereum is becoming the settlement layer for global finance.
What about demand for ETH?
On the back of tariff lows there's strong institutional demand.
4. ETH ETFs Soaking Up Supply
ETH ETF AUM is up 20% QoQ — now holding 4.1M ETH.
That's 3.4% of total ETH supply already held by ETFs...
Institutions are quietly accumulating.
Well, maybe not so quietly.
5. Treasury Demand Rocket
Q2 saw a 5,829% QoQ increase in ETH held in treasury by public entities.
- @SharpLinkGaming : +216k ETH
- @BitDigital_BTBT: +100k ETH
A secular trend that's continuing Q3.
ETH is an institutional grade treasury asset.
What about supply?
6. ETH is Structurally Capped
Circulating supply barely budged Q2 — 120.94M, up just +0.18%.
Whereas BTC is fixed supply, ETH supply is fixed cap.
ETH issuance is .45%, less than BTC, less than gold.
There's no new ETH supply to absorb demand this cycle.
ETH isn’t just being held — it's being used.
7. ETH is onchain
43% of ETH supply is locked in smart contracts - a huge structural demand base.
A productive store of value.
8. ETH on exchanges at 8 year lows
ETH on CEXs just hit 16.4M — lowest since 2016.
That’s an 8-year low.
Likely headed to staking, cold storage, or ETFs.
Seeing a long term holder base for ETH as a store of value.
How's ETH priced?
Still low.
9a. ETH’s MVRV Z-Score at near cycle lows.
Far from overheated.
9b. ETH at Long-Term Support
Comfortably above 200-week moving average. Classic accumulation zone.
ETH building strength again, but still early.
Is ETH about to explode upward?
Look at book value.
10. Book Value Bounce
ETH's Market Cap / TVL ratio rebounded to 1.2 in Q2, up 19%. When this hits parity (~1.0), it signals undervaluation.
Say TVL grows to $1 trillion with stablecoins & RWAs and we get back to a 2.5 ratio.
ETH would be over $20k.
122.09K
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