The Ethereum ecosystem is undergoing a period of transformation, and the utility of the network is facing a divergence from the price of its native cryptocurrency, Ether (ETH).
While the use of decentralized applications and the deposit of capital in smart contracts reaches record numbers (as we will discuss later), ETH price has shown volatility that does not necessarily reflect the strength of its infrastructure What lies at the root of things.
This discrepancy between cryptocurrency pricing and real economic activity raises questions about the efficiency of price discovery in the digital asset sector.
Gap between speculation and actual profits
current dynamics Network suggests ecosystem growth is outpacing retail investors’ reaction speed.
“The amount of economic activity based on Ethereum continues to grow, even at a time when Ethereum’s price lags behind growth,” said an analyst who goes by the pseudonym Milkroad.
This observation highlights that there is a clear disconnect between the price of ETH and the network. Although the economic engine of the network is operating at maximum capacity, this does not translate linearly into a proportional increase in the price of cryptocurrencies. It is trading 37% below its all-time high of $4,900..
Interest isn’t just coming from individual users and technology enthusiasts. “At the same time, more institutional capital is choosing Ethereum for actual implementation,” says the expert.
The flow of specialized capital into the network addresses needs beyond simple valuation of ETH. “These participants are concerned about uptime, liquidity, payment certainty, and compliance, which rapidly dwindles the pool of viable networks,” the analyst explains.
TVL and Capitalization: Why is there a price divergence in Ethereum?
The following chart compares two key metrics. Total Value Locked (TVL), represented by the blue area, and Ethereum’s Fully Diluted Market Capitalization (FDV), represented by the orange line.
Towards the end of 2025, Ethereum’s TVL has reached a level close to $400 billionmarking a historical maximum and strengthening the economic depth of the ecosystem. During the same period, ETH’s fully diluted market capitalization was between approximately $550 billion and $600 billion.
When FDV deviates significantly from TVL, the market tends to go through a phase of overvaluation and subsequent correction. In contrast, a more restrained gap indicates more organic growth. When effective use of networks acts as an anchor for evaluation.
Implementation prospects and financial sustainability
Ether’s role as essential fuel for network operations The main discussion is to predict an upward adjustment in prices.. Ether is required for fee payments and staking to Ethereum.
As activity moves up the chain, transaction volumes and fee generation increase, increasing the economic burden on the base layer of the network.
As reported by CriptoNoticias, the accumulation of Ether by long-term participants suggests that Ethereum is heading towards a more stable stage of operation.
This tendency to hold onto cryptocurrencies adds to the growing utility of the ecosystem. Reinforcing the hypothesis that the network is maturing to a new stage. “Prices will continue to rise as adoption increases,” Milkroad says.
