Woofun AI reports that Ethereum (ETH) sentiment has shifted decisively bullish following the deployment of Robinhood Chain, a Layer 2 network that has rapidly captured significant capital inflows and user engagement.

Capital accumulation on the new network is substantial, with approximately $141 million worth of ETH flowing into the chain to cover transaction fees. This influx has been accompanied by rapid user adoption, as the number of wallets holding ETH on the platform has exceeded 500,000, indicating broad-based participation beyond early adopters.

Trading activity on Robinhood Chain has reached unprecedented levels, with 24-hour decentralized exchange (DEX) trading volume hitting $877.56 million. This figure surpasses both the Ethereum mainnet and the Base network, challenging the narrative that Layer 2 fee revenue does not benefit the broader ecosystem. Influencer Ansem noted that LIT and the Robinhood L2 represent the most bullish scenarios for ETH in a long time, signaling a structural change in market perception.

Valuation metrics further support the bullish case, according to Leon Waidmann, head of research at Lisk (LSK). He highlighted that ETH’s Total Value Locked (TVL) of $260 billion now exceeds its market capitalization of $210 billion.

Woofun AI data shows this valuation ratio is lower than during the 2022 bear market, suggesting a disconnect between network utility and current pricing.

Beyond retail-driven Layer 2 activity, Ethereum maintains dominance in real-world assets (RWAs). Data from RWA.xyz indicates that Ethereum accounts for 47% of the RWA tokenization market, reinforcing its position as the primary infrastructure for institutional-grade blockchain applications.

The convergence of high on-chain activity, record Layer 2 volume, and RWA leadership suggests a robust fundamental base for ETH. While price action remains volatile, the growing utility and undervaluation signals imply that value-focused investors may see sustained price appreciation in the coming weeks.