According to Cas Abbé, Ethereum total value locked has risen to $94.7B, marking the highest level since 2022, source: Cas Abbé on X. According to Cas Abbé, capital is flooding back into ETH DeFi, indicating renewed participation across the Ethereum ecosystem, source: Cas Abbé on X. According to Cas Abbé, ETH is being positioned as a settlement layer for global finance, underscoring its role beyond a medium of exchange, source: Cas Abbé on X. According to Cas Abbé, this combination of a 2022-high TVL and returning DeFi capital highlights strengthening on-chain conditions that traders tracking ETH and DeFi tokens may monitor, source: Cas Abbé on X.

According to The Kobeissi Letter, short interest as a percentage of shares outstanding in the Russell 2000 index has reached approximately 4.6%, marking the highest level in at least six years and nearly doubling since 2022 (source: The Kobeissi Letter, May 8, 2025). This surge in bearish sentiment suggests that investors are increasingly positioning for further declines in small-cap equities. For crypto traders, heightened volatility and risk aversion in traditional small-cap stocks could drive increased capital inflows into digital assets as investors seek alternative risk exposures, especially in trending tokens and DeFi projects.