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Ethereum demand shifts from speculative trading to on-chain activity as staking surges

Ethereum demand is shifting from speculative exchange trading to on-chain activity such as staking and decentralised finance, as exchange-held balances keep declining. Whale withdrawals and staking are increasing and the DeFi lending market is showing signs of recovery. U.S. demand has weakened, with the Coinbase Premium Index mostly negative in 2026 and ether open interest at $11.37 billion. Network activity has risen, with smart contract deployments increasing in the second quarter and more than 500,000 contracts deployed in late July.