Ethereum Transaction Volume Nears All-Time High
Ethereum user activity surged yesterday, with daily transactions reaching a near-record 1.87 million. This level approaches the all-time high of 1.96 million transactions recorded January 14, 2024. Analysts attribute the surge primarily to increased use of stablecoins (particularly USDC and Tether) and the decentralized exchange Uniswap, alongside broader market and regulatory dynamics.
According to Etherscan data cited in the report, Ethereum transactions climbed significantly compared to the previous year. The volume represents a nearly two-fold increase since the start of the year. While competitor Solana recorded 22 million transactions on the same day the article was written, highlighting the scale difference, the rise on Ethereum’s mainnet nonetheless signals renewed network demand.
Senior Research Analyst Jake Kennis from Nansen identified key drivers for the uptick, including regulatory progress like the recently passed GENIUS Act establishing a legal framework for stablecoins in the U.S., and the approval and subsequent rise of multiple Ethereum Exchange-Traded Funds (ETFs), which is bringing greater traditional market liquidity into the blockchain ecosystem.
Analysts also point to increased speculative activity, specifically a wave of meme coin trading and token creation facilitated by layer-2 scaling solutions like Polygon and Base. These networks allow for faster, cheaper transactions than Ethereum’s mainnet, enabling easier token launches and driving speculation.
While the surge brings optimism, particularly for sectors like Decentralized Finance (DeFi), uncertainty surrounds its longevity. DeFi’s Total Value Locked (TVL) has already climbed towards $137 billion, with Ethereum accounting for roughly 59%. However, Sara Gherghelas at DappRadar cautions that the current pace’s sustainability requires monitoring, given upcoming macroeconomic events.
Market sentiment remains cautiously optimistic. A prediction market suggests a majority (63%) of participants believe Ethereum daily transactions could surpass 12 million this week, representing a significant increase.
