Ethereum [ETH] has faced pressure during recent market turbulence, but several on-chain indicators cited by AMBCrypto show activity strengthening across parts of the network.

Community sentiment, a measure of whether market interest is bullish or bearish and to what degree, recorded a moderately bullish reading over the past day. The reading suggested that interest in ETH had improved, although other Ethereum ecosystem metrics remained mixed.

For Ethereum, these metrics are often read together because they capture different parts of network activity. Capital flows can show whether value is moving onto the chain, while fees, transactions, DEX volume, and stablecoin supply help indicate how actively that capital is being used across applications.

Ethereum capital inflows and fees rise

Ethereum has seen a significant increase in on-chain capital inflows over the past few days, indicating that investors have been rotating capital into the ecosystem.

According to Artemis data cited in the report, total capital inflows into the Ethereum chain reached $83 million over the past day. Netflow stood at $58.5 million over the same period.

Large inflows of this kind, particularly when they continue for several weeks, have often coincided with an asset maintaining a longer-term upward move. The report noted that Ethereum’s recent inflow trend therefore remains an important metric to watch.

Network fees have also increased, reflecting higher usage. Daily fees generated on Ethereum have averaged $200,000, pointing to stronger activity on the chain and suggesting that user demand has contributed to the network’s recent performance. Fees are a direct measure of demand for blockspace, so rising fee generation can indicate more competition to execute transactions or interact with smart contracts.

DEX volume and stablecoin supply continue to fall

While capital inflows and broader volume generation have supported Ethereum’s recent performance, the trend has not been reflected evenly across decentralized exchanges on the network.

DEX trading volume on Ethereum has continued to decline. After reaching a peak of $1.529 billion on July 8, volume fell sharply to about $360.9 million. The drop suggests that activity has not been distributed uniformly across Ethereum-based protocols.

DefiLlama data cited by AMBCrypto showed that volume had fallen by around 22% over the previous seven days, as sentiment continued to weaken.

Stablecoins on Ethereum have also recorded outflows. The stablecoin market capitalization on the network has declined by about $4.8 billion since the beginning of July.

At the time of writing, total stablecoin market capitalization on Ethereum had fallen to roughly $149.129 billion. Around $1 billion in stablecoin outflows occurred in the most recent week, a period that also saw a steep decline in volume.

Stablecoins are widely used as trading pairs, settlement assets, and liquidity across DeFi protocols. A shrinking stablecoin supply can therefore matter even when other measures improve, because it may point to less available on-chain liquidity for trading and lending activity.

Transaction growth points to stronger activity

A recent AMBCrypto report showed that Ethereum’s daily transactions have grown steadily, remaining around 2.5 million for most of this year.

By comparison, Ethereum averaged between 1.5 million and 1.6 million daily transactions in 2025, reflecting a lower level of activity during that period.

The increase in transactions, along with gains in key metrics such as total value locked, was cited as evidence that Ethereum may be undervalued at its current price of $1,888. Analysts referenced in the report predicted a substantial price increase over the next two to three years.

Transaction counts cover a broad range of actions, including transfers, token movements, and smart contract interactions, so they do not point to a single source of demand on their own. Together with fees and capital flows, however, they provide a wider view of whether activity is broadening beyond short-term market sentiment.

Overall, Ethereum’s rising capital inflows, transaction count, and network fees point to increased on-chain activity. At the same time, falling DEX trading volume and a shrinking stablecoin supply show that recent momentum has not spread evenly across the Ethereum ecosystem. Continued changes in netflows, stablecoin supply, and exchange activity will remain important for assessing whether the improvement is sustained across the network.