The on-chain activity of the Ethereum network remains the core driving force supporting the value of Ether, but the recent rise mainly comes from the second layer scaling network (Layer2). However, it is still uncertain how much value from these activities can ultimately flow back to the Ethereum Mainnet.
Citi estimates that only about 30% of Layer 2 activity will materially reflect in the value model of Ether, so the current price level is already higher than the reasonable range projected by the bank based on on-chain activity.
Citi assesses that the recent price resilience of Ether may be due to strong capital inflows and the market's enthusiasm for tokenization and stablecoins.