Analysis: The price of Ethereum has dropped 60% from its peak, but traditional financial institutions continue to bet on it
According to Cointelegraph, despite the ETH price dropping 60% from its peak and currently hovering around $1,959, traditional financial institutions are still accelerating their adoption of the Ethereum network.
Data shows that Ethereum and its layer two networks account for 65% of the total value locked (TVL) market share, with the Ethereum mainnet accounting for 57%, approximately $52.4 billion. Major financial institutions such as JP Morgan, Citi, Deutsche Bank, and BlackRock have recently launched on-chain projects on Ethereum, including tokenized funds, dedicated layer two scaling solutions, and bank-issued stablecoins. Ethereum holds a 68% market share in the real-world assets (RWA) sector.
Ethereum co-founder Vitalik Buterin is shifting his focus to layer one scaling and zero-knowledge Ethereum Virtual Machine (ZK-EVM) to ensure long-term on-chain efficiency and security. Although decentralized exchange (DEX) trading volume has decreased by 55% over the past six months, Ethereum still maintains a first-mover advantage in institutional-grade on-chain activity.
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