Author: White55, Mars Finance

August for Ethereum is not just a seasonal transition, but a magnificent declaration of a comprehensive recovery. The market records that had been silent for nearly four years are being broken one after another, with the vibrant on-chain data and the sharp upward trajectory of asset prices mutually confirming each other, forming an epic market trend resonating with underlying technology, institutional capital, and market sentiment. Behind the clamor of breaking through the key threshold of $3700 lies the deep logic of the Ethereum ecosystem's value being redefined after technological iteration and application deepening.

On-Chain Engine Roars: Data Surges Show a Scene Not Seen in Four Years

The Ethereum network erupted with remarkable momentum in July, with multiple core indicators simultaneously reaching historical peaks, sketching a lively picture comparable to the memories of previous bull markets.

The total on-chain transaction volume, a core metric measuring the flow of network value, soared past $238 billion, showing an astonishing month-on-month growth of nearly 70%.

This figure not only represents the highest monthly record since the peak of the crypto market in December 2021 but also sweeps away nearly four years of long dormancy, clearly announcing that the intensity of recovery has entered a new level. The Ethereum network's transaction volume also reached 46.67 million transactions, setting a new monthly record, and achieving a 3.6% increase compared to the historical peak in May 2021.

The steep rise in transaction volume not only reflects the frequent value transfer demands of market participants but also significantly indicates the notable recovery in the activity intensity of upper-layer application ecosystems such as DeFi protocols, NFT markets, and cross-chain bridges, realizing substantial expansion of real economic activities on Ethereum as a "settlement layer."

At the same time, the number of on-chain transactions, which reflects the frequency of basic network usage, also showed a historic breakthrough. The total number of transactions for the month reached 46.67 million, setting a monthly record since Ethereum's inception, and even achieving a moderate 3.6% increase compared to the recognized peak of on-chain activity in May 2021.

The emergence of high-frequency trading is largely attributed to the large-scale implementation of Layer 2 scaling solutions (such as Optimism, Arbitrum, etc.), which effectively reduced user interaction costs and improved network efficiency, making a variety of on-chain activities, from small payments to complex contract calls, economically feasible, truly transforming the scaling blueprint into a perceptible user experience optimization.

As a dual representation of network health and the solidity of the user base, the number of active addresses reached 17.55 million in July. This value once again pulls the time pointer back to the market peak level of May 2021, indicating that a large number of new or "awakened" users are flooding into the Ethereum ecosystem to participate in interactions. This is by no means an isolated data point, but rather forms a self-consistent and mutually reinforcing verification system together with transaction volume and transaction amount — the network is carrying the surging flow of funds, information, and users with unprecedented density.

Price Breakthrough: Market Pricing Mechanism Confirms Recovery Logic

The comprehensive blossoming of data ultimately received the most intuitive and strongest response at the asset value level. As of the time of writing, the ETH price surged strongly, closing above $3700. This is not an isolated price point, but a comprehensive pricing reflection based on the on-chain fundamentals, macroeconomic environment (such as expectations of a shift in Federal Reserve policy), and Ethereum's own technological narrative (the Cancun upgrade further optimizing Layer 2 performance) across multiple dimensions. This price breakthrough has clear support anchors, rather than being purely driven by emotional speculation.

The market's enthusiasm and cruelty often coexist. The rapid breakthrough of Ethereum's price above $3700 became an indiscriminate liquidation storm for leveraged shorts. In the last 24 hours, the total liquidation amount in the global crypto market reached $229 million, affecting over 86,030 traders. Among them, the short positions specifically targeting Ethereum contributed nearly $90 million in liquidation losses, accounting for almost 40% of the total liquidation amount in the entire market.

This vividly reflects the current market's one-sided momentum characteristic — investors attempting to establish short positions against the trend are bearing enormous instantaneous risks. Particularly striking is the single largest liquidation order occurring on the ETH/USDT trading pair on Binance, amounting to an astonishing $2.2986 million. Such a scale of single liquidation reveals that even professional traders or institutions holding substantial capital find it difficult to withstand the severe price fluctuations driven by improvements in on-chain fundamentals without adequate risk preparation.

Institutional Advance: Strategic Allocation of Crypto Assets Becomes a "Clear Move"

In strong resonance with the soaring on-chain data and market price breakthroughs is the unprecedented large-scale, public accumulation behavior of institutional capital.

Against the backdrop of continuous inflows into Ethereum-based exchange-traded products (ETPs), aggressive buying actions are underway, with BlackRock's iShares Ethereum Trust receiving $1.7 billion in inflows over the past 10 trading days.

Data from Dune Analytics indicates that the on-chain ETH holdings of ETFs have increased by 40% in the past 30 days.

In addition, numerous listed companies, hedge funds, and emerging tech companies are incorporating Ethereum into their core asset allocation options with unprecedented posture and determination, significantly characterized by this round of "institutional FOMO" (fear of missing out).

• Deep Layout in Traditional Fields: Listed company SharpLink Gaming (SBET) made another move on August 4, increasing its holdings by approximately $66.63 million to acquire 18,680 ETH. This is by no means an isolated operation, but rather the cumulative result of repeated increases: its total ETH reserves have risen to an astonishing 498,884 ETH, valued at approximately $1.8 billion at current prices. Such large-scale, systematic inclusion of ETH into the balance sheets (or as strategic investment reserves) by traditional industry listed companies releases a strong signal of capital preference — ETH is being viewed as a category of asset with long-term appreciation potential.
• Decisions of Web3 Native Forces: Tech company GameSquare, deeply rooted in the Web3 field, made an important capital allocation decision on August 4 — approving a $10 million stock repurchase plan. The key detail is that the repurchase funds are explicitly designated from its held Ethereum staking rewards. This marks that the core economic mechanisms of the Ethereum network (such as PoS staking generating rewards) have matured and proven reliable, providing listed companies with a real, compliant, and sustainable source of cash flow. Even more noteworthy is that GameSquare simultaneously used funds to increase its holdings by 2,717 ETH, raising its total ETH holdings to 15,630.07 ETH. This reinvestment cycle of on-chain earnings feeding back into on-chain assets profoundly demonstrates ETH's core pivot position in the financial systems of such companies.
• Wall Street Entry Ticket Effect Highlighted: Bitmine Immersion Tech (BMNR), controlled by a company associated with renowned analyst TOM LEE, has been disclosed to hold over 833,000 ETH, valued at approximately $3 billion at current market prices. The entry of Wall Street background capital not only represents capital volume but also signifies the recognition and acceptance of a series of traditional financial compliance frameworks, risk management models, and allocation logic towards crypto assets. The stance of such heavyweight players has a psychological impact on the market that far exceeds the capital volume itself.
• New Whale Quietly Accumulating: Onchain Lens monitoring information reveals the rise of new forces on-chain. Data from August 5 indicates that newly created whale addresses are quietly hoarding ETH. For example, an address starting with "0x86F" received 15,000 ETH (approximately $55.91 million) in a single operation from the compliant institutional trading platform FalconX, raising its total holdings to 39,294 ETH (approximately $146.45 million); another new address starting with "0x55C" also obtained 9,968 ETH (approximately $37.12 million) from top crypto investment bank Galaxy Digital. These new addresses, along with large ETH transfers from compliant sources, likely point to a group of emerging capital forces or discreet family offices whose identities have not yet been disclosed, strategically accumulating Ethereum through mainstream compliant channels. This low-key yet resolute accumulation behavior lays an important foundation for the future market.

On-chain analysis company Glassnode reports that since early July, the number of "large whale" addresses — wallets holding over 10,000 ETH — has increased by more than 200. This includes wallets associated with custodians, exchanges, and ETPs, indicating a growth in institutional demand.

The price of Ethereum has stabilized at the $3710 level, recording an increase of over 5.4% in the past 24 hours. This sustained momentum has far exceeded the scope of a technical rebound. It is the result of the "turbocharged" effect formed by the historical repair and breakthrough of core network indicators (transaction volume / transaction amount / users), the short positions being forced to close, and the continuous high-profile and large-scale entry of institutional capital for allocation — these three powerful forces working together.

Every active interaction on-chain is like injecting fuel into the engine; every large order from institutional buyers is akin to the high-speed rotation of turbine blades, continuously applying pressure; and the stop-loss orders from short positions release even more intense upward shockwaves in an instant. Under the synergistic effect of these three driving forces, Ethereum not only broke through the psychological barrier of $3700 but also reestablished its central value position in the crypto economy, with its future development path endowed with a more solid foundation and broader imaginative space.

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