Bitwise data shows that Ethereum handles more institutional stub coinflows than retail retailers.
Ethereum (ETH) is not just an inappropriate token or decentralized finance degree. According to a new analysis from Bitwise Europe, the basic layer of the network is quietly transforming into a heavyweight payment system for facility money, but retail activities move elsewhere.
𝐓𝐡𝐞𝐀𝐥𝐭𝐀𝐥𝐭
Ethereum has evolved from retail toll roads to freight terminals for facility-grade use cases. The infrastructure is in place with upgrades to Blobspace, Validator Incentives and Governance.
Is this the challenge? Activating demand.
This chart is…pic.twitter.com/T2R27FCUCE
– Bitise Europe (@bitwise_europe) May 28, 2025
Data reveals that Stablecoin Transactions is a major part of current chain activity, so Ethereum is “evolving from retail toll roads to facility-grade use cases cargo terminals.” With over $127 billion of stubcoins circulating on Ethereum’s blockchain, this trend suggests that institutions are increasingly using networks “for the financial flow of the system and chain dollars.”
Meanwhile, the defi frenzy and nft mania, which once characterized Ethereum, had largely moved into Layer 2 solutions.
“NFT activity spiked sharply during the 2021-2022 cycle, but has since dropped significantly. This reflects both market cooling and transition to L2S, which has the launch of new NFTs.”
Bitwise Europe
Ethereum’s mainnet mainly handles core infrastructure functions, ETH transfers, regulated tokenized assets, and basic systems that support rollups and cross-chain bridges. The transition appears intentional.
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With upgrades like Pectra already live and Peerdas/Fusaka coming soon, Ethereum “no longer scales small protocols,” analysts wrote, adding that the network is currently aiming for billions of layer 2 transactions, tokenized Treasury and institutional settlements.
The evolution of the role of the mainnet in Ethereum has been foreseen by developers for some time. In early 2024, Ethereum Core developer Eric Conner suggested that the long-term network mainnet would not serve as a platform where daily users want to trade tokens.
Addressing general concerns about Ethereum’s high transaction fees, Connor noted that Ethereum’s mainnet may not be the ideal platform for daily trading in the long run, but it serves as a foundation for decentralized applications and payments tier.
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