Crypto: Crypto Market Weakness Persists, But Ethereum Metrics Hint At Rally...

Rising Ethereum layer-2 activity and a notable bump in network fees may be an early sign that ETH is on the verge of a recovery.

Ethereum reached 16.4 million weekly transactions, proving fees can stay below $0.20 during high demand.

Decentralized exchange volume across the Ethereum ecosystem hit $26.8 billion, signaling a return of investor interest.

Ether (ETH) experienced a 15.9% price correction during the seven days ending Sunday. This volatility triggered $910 million in liquidations for bullish leveraged ETH positions, fueling fears that the $2,800 support level—which has held firm for two months—might finally break. Despite this dip in trader confidence, several onchain and derivatives metrics suggest a potential short-term rally back to $3,300.

Base layer fees are critical for determining demand for a native token, followed closely by growth in transaction volume and active addresses. While Ethereum has faced criticism for prioritizing scalability through rollups, that strategy is paying off as activity on Base, Polygon, Arbitrum, and Optimism gains momentum.

Ethereum network fees jumped 19% over the last week, while competitors Tron and Solana saw declines relative to their recent trends. More importantly, the aggregate number of transactions on Ethereum layer-2s surged to 128 million, surpassing the totals of BNB Chain and Tron. This suggests the Ethereum ecosystem can scale effectively without sacrificing its core utility.

Decentralized exchange (DEX) activity is a primary indicator of capital inflows and network fees. While demand for perpetual contracts trading peaked in August 2025 and has declined since, the trend is shifting back toward Ethereum. This is largely due to average transaction fees dropping to $0.20, down from $0.50 in November 2025.

Weekly DEX volumes on Ethereum reached $13 billion, up from $8.15 billion four weeks ago. Although Solana remains the leader with $30 billion in weekly volume, the total Ethereum ecosystem reached $26.8 billion. The Fusaka upgrade in December 2025 significantly boosted network data capacity and introduced transaction batch workflows, greatly improving the user experience.

Ethereum’s dominance in total value locked (TVL) remains strong evidence of investor preference for decentralization, even as BNB Chain and Solana struggle to capture more market share.

Professional traders are returning to a neutral stance between call (buy) and put (sell) options after a brief period of hedging against

Source: CoinTelegraph