Ether gained 3% between Thursday and Friday as tokenization growth, institutional accumulation, and Robinhood Chain’s layer-2 launch offset weakness in onchain metrics.
Robinhood Chain, an EVM-compatible layer-2 network using ETH as its native gas token, reported over $70 million in ETH bridged during its first week of operation. The platform extends Robinhood’s tokenized stock offering, available in 120 countries, to a blockchain environment. Total bridge deposits to Robinhood Chain reached $106 million.
Ethereum’s dominance in the real-world asset market strengthened the case for institutional accumulation. The blockchain commands 47% market share in RWA tokens, including Tether Gold (XAUT), Ondo US Dollar Yield (USDY), and Franklin Templeton government bonds (iBENJI). Ethereum’s total value locked stands at $260 billion, surpassing ETH’s market cap of $210 billion for the first time.
Leon Waidmann, head of Research at Lisk, characterized the valuation disparity as a buy signal. “ETH is underpriced,” Waidmann said, citing the TVL-to-market-cap inversion as evidence of relative undervaluation.
Corporate treasuries added to bullish momentum. BitMine accumulated 198,370 ETH over the past 30 days and maintains $10.3 billion in reserves. On Thursday, Galaxy Digital withdrew 20,500 ETH, valued at $36 million, signaling institutional repositioning.
Onchain Weakness Constrains Upside
Despite price gains, onchain activity shows deterioration. DApp revenue on Ethereum fell to $11 million weekly, down from $20 million in Q1 2026. Active addresses contracted to 3.2 million from 5.4 million in the first quarter. Sky posted $3.1 million in weekly revenue, Titan Builder $2.4 million, and Chalink $1.1 million.
Derivatives data presents a mixed picture. ETH perpetual futures funding rate dropped to 3% on Saturday, falling below the 6% neutral threshold that typically signals balanced positioning. The rate had peaked at 12% on Friday, suggesting rapid unwinding of leveraged longs.
The combination of strong tokenization tailwinds and institutional buying against declining onchain engagement and subdued derivatives sentiment leaves ETH vulnerable to a retest of $1,700 if momentum stalls.
