Ethereum’s higher user activity (more trades, DApp use) boosts demand for ETH, lifting prices. Active users drive network value—slower activity often precedes price stagnation or declines.
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Optimism's Q1 2025 DeFi APY dropped to 8% from 12% in Q4 2024. If users are highly APY - sensitive (e.g., 40% leave for 5%+ APY gain), it may face user loss. But other factors like security also matter.
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ERC-20 gains draw capital into Ethereum’s ecosystem; profits may flow to Bitcoin, creating feedback loops. ERC-20 strength boosts Ethereum, indirectly supporting Bitcoin via broader crypto optimism, or diverts funds, pressuring BTC.
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