Analyst: Ethereum price may see an increase, funds flowing into ETH and L2 ecosystem

According to CryptoPotato, Ethereum has been performing poorly recently and is referred to as "ETH death," while competitors Solana and Avalanche have seen price surges. However, crypto analyst 'Metaquant' pointed out on January 5th that the Layer-1 rotation in the fourth quarter is similar to that of 2021.

Furthermore, after weeks of growth, Solana and Avalanche are starting to slow down. So where will the funds flow next? Analysts point out that ETH is flowing out from centralized exchanges, and network activity has gradually increased compared to previous weeks. "The rotation from other L1s to ETH has begun, and the ETH chain season is heating up." Additionally, Ethereum's activity on Layer-2 networks has been steadily increasing for several months. According to L2beat data, on January 4th, the total value locked (TVL) in the L2 ecosystem reached a record-breaking $21 billion. In addition to TVL reaching its peak, daily active addresses, Layer-2 fees, and stablecoin market value are also steadily growing. Analysts state that once ETH prices catch up, "everyone will turn back towards ETH and L2s."