Ether Bounces Back Strongly in May, Surpassing DeFi Market Performance

Ether Regains Strength, Surpassing DeFi Market and Bitcoin Amid Layer-1 Rivalry

Ether (ETH) is making a notable comeback, outperforming both the decentralized finance (DeFi) market and Bitcoin, while challenging competitors like Solana in the layer-1 blockchain arena.

Over the past month, ETH has climbed 45%, a strong performance compared to the 21% increase in the broader DeFi sector and Bitcoin’s 13% rise, according to DefiLlama data.

This upswing is largely credited to rising institutional interest, with record inflows into spot ETH ETFs driving demand.

Earlier this year, Ether faced a difficult period, losing ground to rival blockchains like Solana amid a surge in memecoin activity. ETH started the year at $3,340 but dropped sharply to $1,472 in April due to concerns over U.S. tariffs and global economic uncertainty.

However, as noted by CoinDesk analyst Omkar Godbole, Ether has now broken an 18-month downtrend against Solana and is steadily reclaiming its position in the DeFi ecosystem.

Yield opportunities appear to be a significant catalyst. Data from DefiLlama shows that TVL in Ethereum restaking protocols such as EigenLayer and Ether.fi has risen between 41% and 48% this month. Binance’s staked Ether product also saw a 63% jump in TVL.

Meanwhile, Solana’s DeFi platforms have lagged behind, with Jupiter and Kamino experiencing modest TVL gains of 7% and 9%, and Marinade’s liquid staking rising by 29%.

Ether’s resurgence marks a turning point, driven by growing institutional adoption and strong growth within Ethereum’s DeFi space, positioning it well against layer-1 rivals.