Ethereum Transactions and Active Addresses Near All-Time High as Institutional Interest Surges

The Ethereum network is showing notable signs of increased engagement with transactions and daily active addresses nearing record highs. This renewed interest is in large part due to public companies increasing their Ethereum inventories for their crypto treasuries.

Surging Transactions on the Ethereum Network

On August 15, Ethereum registered close to 1.8 million transactions based on data from Token Terminal. This number takes the network to new heights, nearing its highest ever record of 1.9 million transactions. The transaction rate has since found stability at approximately 1.5 million transactions each day on average. To put into perspective the magnitude of the network’s growth, consider that daily transactions in January 2024 were around 950,000.

Increase in Daily Active Addresses

Notably, daily active addresses on the Ethereum platform are also on an upward trajectory. The figure is nearing 600,000, a new benchmark excluding sporadic surge days in 2023.

Moderate Gas Usage

Artemis data suggests that gas usage on the Ethereum network remains moderate, standing at approximately $1 million daily. This figure is significantly lower than the $40 million peaks witnessed in 2021-2022. This suggests that the growth in Ethereum network activities is not a result of short-term speculation or sudden interest. It is, instead, more likely due to increased consistent usage and the entry of more institutional participants into the network.

A Surge in the Total Value Locked in Ethereum’s DeFi Ecosystem

Accompanying this spike in Ethereum’s on-chain activities is a surge in the total value locked or TVL in Ethereum’s DeFi ecosystem, which recently touched $97 billion. This figure is the highest level since November 2021 when Ethereum’s TVL reached an all-time high of $105 billion.

Institutional Inflows Coinciding with TVL Surge

The rise in Ethereum’s TVL has synchronously occurred with record-breaking institutional inflows. Ethereum ETFs have reportedly brought in over $2.8 billion within a week, establishing a new high water mark. The trend shift was exemplified on August 11 when Ethereum ETFs saw more than $1.02 billion inflow in a single day, pushing the total ETF assets past the $25 billion mark. However, this impressive run was cut short on August 18 when the fund witnessed $196.6 million in outflows.

ETH Price Climbs Amid Institutional Interest

Subsequently, the price of Ethereum’s native currency, ETH, has climbed. ETH hit $4,776 on August 14, marking the highest level reached this year. While the cryptocurrency saw a slight dip, sliding to $4,076, it has since recovered back up to about $4,300. Although the current price of ETH is still below its all-time peak, Sean Farrell, Fundstrat’s head of digital asset research, made an optimistic prediction on August 13. He mentioned that he forecasts the value of ETH to reach $10,000 by the end of the year. Additionally, he gave a bullish estimate ranging from $12,000 to $15,000 in the coming months.

Final Remarks

The Ethereum network has been seeing immense growth, underpinned by a surge in transactions and active addresses. While the network’s gas usage remains moderate, the total market cap locked in Ethereum’s DeFi ecosystem is nearing all-time highs. Amid the boom, ETH continues to attract institutional and consistent network users. These forecasts signal a promising future for Ethereum and its native asset, ETH.