Ethereum leads all blockchains with $4.2 billion in net inflows in 2025 as Layer 2 funds return

Source: Yellow Original Title: Ethereum leads all blockchains with $4.2 billion in net inflows in 2025 as Layer 2 funds return

Original Link: Ethereum closes 2025 with $4.2 billion in net inflows, the highest among all blockchains.

The network recorded $64.5 billion in total inflows compared to $60.3 billion in outflows, according to Artemis data.

Hyperliquid ranks second with approximately $2.9 billion in positive net flows.

Arbitrum experienced the largest outflows among Layer 2 networks as liquidity consolidated back into Ethereum mainnet.

What happened

Ethereum added $195 million in net inflows just during the last week of 2025.

The data measure capital movement through DeFi bridges, including both canonical bridges and application-specific bridges connecting different blockchain ecosystems.

Hyperliquid, a blockchain focused on perpetual futures trading and DeFi infrastructure, secured second place ahead of Sonic, WorldChain, and Solana.

Layer 2 networks currently account for only 13.5% of the Ethereum ecosystem economy as of December 29.

The mainnet holds the majority of liquidity, despite Layer 2s processing over 93% of transaction volume.

Stablecoin balances on Layer 2 chains fell by approximately $1 billion in December alone.

Layer 2 chains hold just 8.8% of the total stablecoin supply, which reached a maximum of $18 billion earlier this year.

Why it matters

Ethereum’s dominance is based on its extensive bridge infrastructure connecting numerous chains and enabling frictionless asset transfers.

The network acts as the main settlement layer for major stablecoins, including USDT and USDC.

Lower gas fees and better usability contributed to Ethereum’s ability to recover liquidity from higher-risk Layer 2 protocols.

After a liquidation event in October, capital flows decisively shifted back to Ethereum mainnet as market participants favored liquidity concentration.

The network’s role as a high-value DeFi liquidity hub and accumulation point for large holders remained intact despite competition from Layer 2 solutions.

Ethereum also reached a peak in smart contract creation and usage during 2025.

ETH was trading at $2,930 as of December 29, down 12.1% year-to-date after falling 29% in the fourth quarter.