The post Ethereum (ETH) Resilient Amid Market Sell-off, Layer-2 Growth Highlights Potential in Uncertain Times appeared on BitcoinEthereumNews.com.

Ethereum (ETH) has demonstrated resilience amid a sell-off in Bitcoin (BTC) and altcoins, showcasing the strength of its fundamentals. With a significant increase in layer-2 transactions, the Ethereum network continues to lead in decentralized finance (DeFi) despite broader market uncertainties. As noted by COINOTAG, Ethereum holds a commanding 54.2% market share in total value locked (TVL), outpacing its competitors significantly. Ethereum showcases resilience and growth in layer-2 transactions while maintaining a strong market share, amid broader market challenges. Ethereum’s Layer-2 Growth Signals Strong Ecosystem Health Ethereum has faced challenges in recent weeks, particularly with its price failing to breach the critical $2,700 mark since mid-May. Yet, its performance has outstripped the overall cryptocurrency market capitalization by 17% over the last 30 days. This discrepancy may suggest a potential correction as macroeconomic factors loom. Investor sentiment is cautious, primarily due to declining interest in decentralized applications (DApps) across various blockchains. Despite trading 48% below its all-time high of $4,870, Ethereum’s total value locked (TVL) stands at $122 billion, signifying a 43% decline from its peak in December 2021. However, the Ethereum network remains a dominant force in the DeFi space. Layer-2 Solutions Bolstering Ethereum’s Position Ethereum’s impressive 54.2% TVL market share strongly indicates its stability, with leading layer-2 solutions contributing an additional 6.3%. This growth has alleviated some competitive pressures from alternative blockchains, as evidenced by the substantial deposits within Ethereum’s ecosystem, which are over four times that of its nearest rivals, Solana and BNB Chain. Critics have pointed out that Ethereum appeared unprepared for the memecoin surge that dominated early 2025, particularly with on-chain activities on Solana skyrocketing after the launch of the Official Trump (TRUMP) token. While some Solana DApps have seen impressive activity, the broader implications for SOL holders remain ambiguous. Consider the top four Solana DApps—Meteora, Pump,…

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Filed under: News - @ May 31, 2025 2:24 am