Fundamental Analysis of Ethereum on July 10, 2025: Bright Future or New Volatility?

Fundamental analysis of Ethereum on July 10, 2025, explores network adoption, tech upgrades, and economic factors.

As of July 10, 2025, Ethereum is trading at approximately $2,610 on Coinbase, showing stronger performance compared to Bitcoin in the recent quarter. This fundamental analysis explores the key factors driving Ethereum’s market and forecasts its future trajectory. Network adoption is a primary driver of Ethereum’s growth in 2025. The number of smart contracts and decentralized applications (DApps) on Ethereum’s blockchain has surged significantly. Decentralized finance (DeFi) platforms and non-fungible tokens (NFTs) continue to position Ethereum as the go-to choice for developers. Market data indicates that the total value locked (TVL) in Ethereum-based DeFi protocols exceeds $120 billion, reflecting growing confidence in the network. Technological upgrades also play a critical role in strengthening Ethereum’s position. Following the completion of early Ethereum 2.0 phases, sharding is expected to roll out in late 2025 or early 2026. This upgrade could significantly enhance network scalability and reduce transaction costs. However, Vitalik Buterin’s recent gas cap proposal has sparked debates within the Ethereum community. Aimed at lowering transaction fees, the proposal could reduce miner revenue and introduce short-term price volatility, according to some analysts. From an economic perspective, global monetary policies have favored Ethereum. The Federal Reserve’s interest rate cut in June 2025 has driven investors toward high-risk assets like Ethereum. Additionally, the ETH/BTC ratio indicates Ethereum’s outperformance over Bitcoin in the recent quarter, potentially signaling a shift in capital flow toward altcoins. However, whale movements and potential sales by large holders could trigger short-term volatility. Overall, Ethereum’s fundamental factors—network adoption, technological upgrades, and economic conditions—point to a bullish outlook. Nonetheless, investors should remain cautious of volatility stemming from regulatory changes and proposals like the gas cap. A long-term investment strategy with robust risk management is the optimal approach to capitalize on Ethereum’s potential.