Ethereum Price Lags Behind Network Growth Amid Scaling Frenzy

Ethereum's base layer saw significant growth in real economic value during the second quarter, reaching $88.4 million, a 7% increase from the previous quarter but still 68% lower than the same period last year.

However, applications running on Ethereum generated about $1.79 billion in fees, with the network's base layer capturing only around 4.9% of that value.

This mismatch between price and scalability has raised questions among investors about whether growing use will eventually support higher demand for ETH or if most value will remain outside the base layer.

Tanaka on X notes that Ethereum is scaling faster than ever, but the coin remains below $2,000. He believes tokenized assets and institutional demand could drive future price growth.

With around one-third of the total ETH supply locked in the Beacon Chain for staking, current figures put the total ETH supply at about 121.88 million coins, with an annual supply growth rate close to 0.85%.