Ethereum

Stablecoin

DeFi

Tom Lee

<h3 class="wp-block-heading" id="h-key-insights">Key Insights</h3> 
<ul class="wp-block-list"> 
 <li>Ethereum news shows more than $12 billion in new institutional positions while retail activity stays low.</li> 
 <li>Stablecoin settlement and DeFi liquidity remain high even with very low fees.</li> 
 <li>Data suggests large buyers expect stronger long-term demand than the market shows today.</li> 
</ul> 
Ethereum news this week shows two very different signals. On one side, the network looks quiet. Fees are low, and daily usage from small users has slowed. 
On the other side, institutions are buying more ETH than before. Bitmine alone now holds more than $12 billion worth of ETH after adding hundreds of millions last week. 
This has made many traders ask why large buyers are building big positions when the overall market feels slow. 
<h2 class="wp-block-heading" id="h-why-this-ethereum-news-sends-out-mixed-signals">Why This Ethereum News Sends Out Mixed Signals</h2> 
Recent inflows show strong interest from institutions. Bitmine added more than $431 million in one week and now holds $12.05 billion in ETH. 
The company also has almost $1 billion ready for more buying. Other large traders hold long positions worth $200 million to $350 million. These numbers show that some of the biggest players still trust Ethereum. 
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 <img decoding="async" width="836" height="1024" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-272-836x1024.png" alt="" class="wp-image-1589370" style="aspect-ratio:0.8164084719108643;width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-272-836x1024.png 836w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-272-245x300.png 245w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-272-768x940.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-272-150x184.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-272-300x367.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-272-696x852.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-272.png 940w" sizes="(max-width: 836px) 100vw, 836px">
 <figcaption class="wp-element-caption">
 Institutions Keep Buying ETH | Source: X
 </figcaption>
 </figure> 
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At the same time, fees on Ethereum are near <a href="https://www.thecoinrepublic.com/2025/12/09/ethereum-news-network-usage-falls-to-2017-levels-as-fees-drop-nearly-90/">very low levels</a>. Fees fall when fewer people use the network or when the network becomes more efficient. 
Right now, the drop is mostly because of low activity from small users. 
Even with this, Ethereum still moves a large amount of dollar value every day. <a href="https://www.thecoinrepublic.com/2025/12/02/stablecoin-news-european-banks-accelerate-euro-stablecoin-launch-to-counter-us-dominance/">Stablecoin</a> settlement is at very high levels this quarter. Settlement means the total amount of value sent from one wallet to another. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-large is-resized">
 <img decoding="async" width="1024" height="1024" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-273-1024x1024.png" alt="" class="wp-image-1589376" style="width: 100%;height:auto" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-273-1024x1024.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-273-300x300.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-273-150x150.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-273-768x768.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-273-696x696.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-273-1068x1068.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2025/12/image-273.png 1500w" sizes="(max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 Fees Stay Low | Source: X
 </figcaption>
 </figure> 
</div> 
This is what makes the picture confusing. Activity looks slow, but the money moving on the network stays high. 
Traders think this means retail demand is weak, but institutional usage is strong. This gap between small users and large holders has grown over the past few months. 
Ethereum also remains the main place for large transfers in the crypto market. 
Solana processes more transactions, but the total value moved on Ethereum is higher. This shows that many financial actions, such as payments and settlements, still choose Ethereum. 
<h2 class="wp-block-heading" id="h-why-institutions-continue-to-build-long-positions">Why Institutions Continue To Build Long Positions</h2> 
Several reasons explain why institutions keep buying ETH even when the market looks quiet. First, <a href="https://x.com/ryanwatkins_/status/1998529576331522334?s=46&amp;t=S3Oz1w-2fr3vX24VCy4kRg" target="_blank" rel="noreferrer noopener nofollow">Ethereum’s role as a settlement layer is hard to copy.</a> 
Many rollups and new networks use Ethereum for security. More assets are being tokenized on Ethereum. 
More developers continue to use the EVM. These steps make the network stronger over time. Second, some investors think Ethereum’s value could rise much higher in the future. 
One model from Tom Lee places ETH’s “fair value” near $62,000 if current activity continues. 
Large holders building positions between $200 million and $350 million show that some traders agree with this long-term view. 
Third, US officials say many markets may move on-chain in the next two years. When this happens, they need a safe chain for settlement. 
Early signs show most tests use Ethereum because of its stability and long history. This matches the rise in institutional buying. 
Fourth, high stablecoin volume and high DeFi liquidity show that many large users still trust Ethereum. 
This is happening even though on-chain activity from smaller users is slow. Stablecoin settlement is close to record levels. 
DeFi money locked in low-risk pools is also high. These numbers show strong use behind the scenes. 
Ethereum now needs higher activity from everyday users. If fees rise and usage improves, it shows stronger demand. If usage stays slow, the price may continue to move sideways even with strong institutional support. 
Traders are watching two Ethereum news bits closely. The first is stablecoin settlement. 
If this stays high, it confirms that institutions continue to use the network. The second is fee behavior. Higher fees often mean more activity and higher demand. 
The post <a href="https://www.thecoinrepublic.com/2025/12/10/ethereum-news-12b-inflows-signal-rising-eth-demand-despite-slow-use/">Ethereum News: $12B Inflows Signal Rising ETH Demand Despite Slow Use</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.

Ethereum News: $12B Inflows Signal Rising ETH Demand Despite Slow Use

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