"Corporate Treasuries and ETFs Drive ETH Toward $5K as Staking Congestion Persists"

Ethereum has experienced a notable uptick in on-chain activity, with network transaction fees jumping 35% from the previous week and a 10% rise in active wallet addresses, indicating greater usage for transactions and data operations on the blockchain [ 1 ]. These figures highlight the durability of Ether (ETH), even as it faces challenges from an unprecedented $12 billion queue of users seeking to unstake, resulting in validators having to wait up to 46 days to exit staking positions [ 1 ]. Market experts point out that strong network activity

only underpins ETH’s value but also improves network security by increasing validator earnings and activating Ethereum’s supply-reducing burn process [ 1 ].

Businesses have ramped up

acquisitions, with major corporate treasuries accumulating 877,800 ETH—which is approximately $4 billion at present market prices—over the last month [ 1 ]. Notable players such as Bitming Tech (BMNR), (SBET), and The Ether Machine (ETHM) are either staking their holdings or planning to do so [ 1 ]. This pattern highlights the increasing recognition of ETH as a preferred corporate reserve asset, which some analysts believe could be a catalyst for a move above $5,000 [ 1 ].

Ethereum continues to lead the decentralized application (DApp) industry, accounting for 64.5% of the total value locked (TVL) in the sector’s $169.4 billion landscape. In contrast,

holds under 9% of the TVL [ 1 ]. This gives a decisive edge as the main platform for decentralized finance and Web3 applications, further cementing its market dominance [ 1 ].

The launch of spot ETH exchange-traded funds (ETFs) has also strengthened ETH’s prospects. These ETFs now manage $24.7 billion in assets, with $213 million in fresh investments added just on Thursday [ 1 ]. Such investment vehicles offer institutions an accessible, regulated route to obtain ETH exposure, bolstering Ethereum’s standing against competitors [ 1 ]. At the same time, ETH held on exchanges has fallen to its lowest in five years, with 2.69 million ETH withdrawn in the last two months, suggesting accumulation and lighter near-term selling pressure [ 1 ].

Although the fundamentals are strong, analysts warn that normalization of the validator exit queue could lead to short-lived price drops. While ongoing ETF inflows and business accumulation support a positive outlook over the long term, traders remain wary until the staking exit situation becomes more stable [ 1 ]. Ether’s latest gains—outpacing the wider crypto market by 21% over two months—demonstrate its resilience, but experts suggest keeping an eye on validator queue changes and broader economic trends [ 1 ].

The combined effects of increased network use, greater corporate investment, and institutional interest have set the stage for ETH to potentially reach $5,000. However, whether this is achieved will depend on easing the validator exit bottleneck and sustaining strong ETF inflows and network engagement [ 1 ].