Ethereum’s summer rebound is driven by improved network performance post-merge, increased DeFi activity, and anticipation of future upgrades. The transition to proof-of-stake has reduced energy consumption, enhancing its environmental profile and attracting ESG-focused investors.
Compared to previous cycles, this rally appears more institutionalized, with ETF inflows and stablecoin growth playing larger roles. The focus on utility over speculation suggests a maturing market, though volatility remains inherent.
Sustaining this momentum requires continued innovation and adoption. If Ethereum maintains its dominance in smart contracts and decentralized applications, the comeback could signal a new phase of growth. However, competition from other blockchains and macroeconomic factors still pose risks.
