Ethereum increased 33% in Q2, will ETH surpass the $4,000 mark?

Ethereum (ETH) is standing out again by achieving a 33.47% increase in the second quarter of 2025, bringing expectations of a breakthrough to $4,000 in October. This growth not only reflects price attraction but also shows a strong increase in [Staking] activity, with over 35 million ETH—equivalent to nearly 30% of total supply—locked in the network. This demonstrates the community's long-term trust and commitment to Ethereum. However, alongside the growth trend are concerns about centralization, as Lido, Binance, and Coinbase control nearly 40% of staked ETH, posing challenges to the network's security and decentralization. Ethereum's Impressive Growth in Q2 2025 In the second quarter of 2025, Ethereum recorded a 33.47% increase, strongly recovering after a 45.41% decline in the first quarter. This performance is among the best quarters in recent years, following the 69.62% increase in 2020 and 102.25% in 2019. This recovery somewhat reinforces expectations that Ethereum could reach $4,000 by the end of October, closely monitored by the community and investors. [On-chain] activity also reached a new record, with the number of active weekly addresses exceeding 20.2 million in May 2025, a 52.71% increase from the previous week. This is a sign of increasing interest and network usage, proving the sustainable vitality of this Blockchain platform. Ethereum Staking Activity Escalates Strongly Ethereum's transition to a staking-based security model is reaching an important milestone, with over 35.2 million ETH, equivalent to 28.3% of total supply, currently locked for staking. This value is equivalent to over $84 billion at current prices, marking a deep commitment from users to the Ethereum ecosystem. Recent data shows that over 500,000 ETH was staked in just two weeks of June 2025, demonstrating the rapid growth of this activity. The U.S. Securities and Exchange Commission's decision to loosen regulations for institutions is also seen as a strong driver of trust and staking volume. With approximately 19% of ETH held long-term, circulating supply is increasingly narrowing, creating conditions for a tighter market, along with higher price volatility due to limited [Liquidation]. Concerns About Centralization in Ethereum Staking While staking activity grows positively, the centralization of validation rights becomes a major concern. The top three names—Lido, Binance, and Coinbase—are controlling nearly 40% of total staked ETH, with Lido accounting for 25.6% (8.7 million ETH), Binance and Coinbase at 7.5% and 7.4% respectively. This level of centralization could make the Ethereum network vulnerable to incidents like censorship or service interruption, as a single issue with one of these three providers could affect over 40% of new blocks on the network. The scarcity of liquid staking Tokens like stETH is driving borrowing costs on [DeFi] platforms higher, leading to increased risks and reduced financial flexibility in the Ethereum ecosystem. Summary and Development Prospects of Ethereum Ethereum is currently on a strong recovery path with significant advances in value and staking activity. However, alongside development are major challenges regarding power centralization in validation, requiring stricter technological and governance solutions to maintain network decentralization and safety. Looking to the future, controlling risks related to centralization and enhancing network scalability will be key development focuses, helping Ethereum maintain its position as a leading Blockchain platform and attracting more users, investors, and sustainable [DApp] applications.