$ETH Sees Strong Liquidity Growth Ahead of Q4 Risk-On Move

Ethereum's liquidity setup is looking more balanced, thanks to a shift in stablecoin dominance. According to data from DeFiLlama, $ETH has the largest stablecoin liquidity base by far on L1s, accounting for 50% of the $300 billion market.

This means that Ethereum has a deep liquidity war chest to rotate into risk assets when the market turns risk-on. In fact, liquidity rotation seems to have already started, with Ethereum processing over 203 million transactions in Q2, up 68.4% from Q2 2025.

The result is that $ETH has emerged as one of the top performers among large caps, gaining 52% so far in Q3. This trend is expected to continue, with renewed liquidity potentially adding another layer of bullish momentum to $ETH's price action.