Ethereum’s Recovery May Sustain on Strong On-Chain Metrics and Supercycle Signals

• Ethereum dominance rises to 13.2% as Bitcoin retreats, indicating shifting market momentum toward ETH.

• On-chain metrics show TVL up 5% and stablecoin supply exceeding $162 billion, reflecting increased network utilization.

• Over 160,000 ETH staked since October crash, with institutional buys like SharpLink’s $78.3 million accumulation supporting bullish outlook.

Ethereum supercycle gains momentum in 2025 with rising TVL and staking. Discover how on-chain strength and expert insights from Tom Lee signal ETH’s path to $5,000 recovery.

What is Ethereum’s supercycle?

Ethereum’s supercycle describes the prolonged bullish phase fueled by fundamental network improvements and growing adoption in decentralized finance and layer-2 solutions. In 2025, this cycle is evident through heightened on-chain activity, where total value locked reached $90 billion, up 5% in the last day, and total value staked approached 36.19 million ETH. Experts like Tom Lee from Fundstrat emphasize that these metrics often precede price surges, positioning Ethereum for sustained growth beyond short-term rebounds.

How are on-chain fundamentals driving Ethereum’s recovery?

Ethereum’s on-chain data reveals strengthening fundamentals that underpin its recovery trajectory. The total value locked in Ethereum protocols climbed to $90 billion, marking a 5% increase in 24 hours, according to CryptoQuant. Stablecoin supply surpassed $162 billion for the first time, indicating robust liquidity inflows. Additionally, total value staked remains near its all-time high of 36.19 million ETH, with approximately 160,000 ETH added since the October crash. This staking surge reduces circulating supply, as investors lock tokens for yields, fostering long-term conviction. Tom Lee noted, “Ethereum remains in a supercycle,” highlighting how layer-1 and layer-2 activities front-run price action, validating the asset’s uptrend. Short sentences underscore the data: TVL growth signals utilization; staking tightens supply; stablecoins boost liquidity. These elements collectively suggest Ethereum’s network is maturing, attracting more capital rotation from traditional assets into yield-bearing protocols.

Source: CryptoQuant

Frequently Asked Questions

What factors are contributing to Ethereum’s potential price recovery to $4,400 in 2025?

Ethereum’s path to $4,400 involves recovering post-crash losses through on-chain growth and market shifts. Key drivers include a 4% price move supported by rising TVL to $90 billion and staking near 36 million ETH. Institutional accumulation, like SharpLink’s 19,720 ETH purchase at $4,062, combined with tightening supply, positions holders back in profit, per data from CryptoQuant.

Why is Ethereum’s dominance increasing relative to Bitcoin right now?

Ethereum’s dominance is climbing to 13.2% as Bitcoin’s share declines over four sessions, driven by capital rotation and undervaluation correction. On-chain strength, including stablecoin supply over $162 billion and institutional inflows, favors ETH’s momentum. This divergence, visible on TradingView charts, aligns with broader supercycle trends, making Ethereum a focal point for investors seeking yield and growth.

Key Takeaways

• Ethereum’s on-chain metrics signal strength: TVL up 5% to $90 billion and staking near all-time highs reduce liquid supply, supporting price stability and growth.
• Institutional confidence is building: Moves like SharpLink’s $78.3 million ETH accumulation at $4,062 reflect bets on upside, aligning with Tom Lee’s supercycle view.
• Market dominance shift favors ETH: A 3% rise in ETH dominance to 13.2% amid Bitcoin’s retreat indicates capital rotation, potentially driving toward $5,000 targets.

Source: TradingView (ETH.D)

Conclusion

Ethereum’s supercycle continues to unfold in 2025, bolstered by on-chain fundamentals like surging TVL and staking activity, alongside expert endorsements from Tom Lee at Fundstrat. As dominance climbs and institutional flows intensify, the network’s recovery appears poised for longevity. Investors should monitor these trends closely, as they point to Ethereum’s role in the evolving crypto landscape—stay informed to capitalize on the next phase of growth.