Ethereum (ETH) registered a significant improvement in the second quarter. This includes increased exchange trade financing (ETF), layer 2 activity and liquidity, which will strengthen our third quarter outlook.
According to “Charting Crypto Q3 2025” Report According to Coinbase and GlassNode, Spot Ethereum ETF, which trades in the US, won $1.7 billion in net inflows in the last quarter, overturning previous period outflows.
The facility flow reverses to a positive test
Additionally, layer 2 throughput rose 7%, while average user fees fell 39%. This was followed by an 8% increase in liquid supply, but the long-term balance was reduced by 6%.
As a result of improvements seen in the last quarter, ETH retained share of profits rose nearly 90% from under 40%. Additionally, the total value locked at Ethereum reached $63.2 billion.
The improvement is also registered in the derivatives market, with daily permanent futures sales averaged $51.4 billion, up 56% per quarterly.
The total inflow erased a $200 million leak in the first quarter, regaining momentum for managers positioning ETH as the market’s second largest cap crypto.
Open interest on futures totaled $14.5 billion on June 30, despite a quarterly pullback of 6.9%, highlighting deeper liquidity at regulated venues.
Meanwhile, the options are $5.3 billion, with the derivative desk recording an 11% increase in terms of volume, indicating an increase in hedging appetite.
Network Activity and Economics
Developers and users benefited from a 39% reduction in base tier fees as the rollup absorbed more transactions and sharpened the economics of deploying on-chain applications.
At the same time, Ethereum’s inflation rate was modest, at around 0.75% per year. This cushioned long-term supply pressure.
Staked Eth continued to climb, and the report plotted both the complete pile and associated annual yields within its core fundamentals table.
Chain-on Analytics shows that holders used relocation using second quarter price recovery. Liquid coins defined as moving within 90 days rose 8%, with coins down 6% for over a year.
This indicates controlled profits rather than wholesale distribution. ETH’s net unrealized unrealized gains/losses revert from surrender to optimism between the first and second quarters, working with a market cycle model that tracks investors’ sentiment shifts.
The pool of coins sitting below plunged from over 40 million people to under 10 million over the same period.
Defi’s collateral base and market share
The total $63 billion total (TVL) at Ethereum’s Defi Ecosystem is spreading to loans, decentralized exchanges and agricultural protocol harvests.
Ether also expanded its slice of total crypto market capitalization, along with Bitcoin and Solana, as investors rotated towards perceived blue chip assets.
The persistent swap funding rate tracked alongside Bitcoin and Solana remained neutral to positive until late June, suggesting a balanced, speculative position rather than bubbles.
However, the report warned that ETF maintenance and favorable rate terms must persist to maintain a constructive background for the second quarter.
Nevertheless, Ethereum has now entered the third quarter with scheme sponsorship, reduced transaction costs and a healthier on-chain profit profile.