The Ethereum network reached an all-time high in average daily transactions as of August 5th. The number of transactions, measured by the 7-day moving average, rose to 1.74 million. This surpassed the previous record of 1.65 million set on May 12, 2021.
Ethereum Breaks Record Transaction Volume: Daily Transaction Count Surpasses 2021 Peak
July was also the busiest month in Ethereum’s history, with a total of 46.67 million transactions occurring across the network.
The number of active addresses also increased significantly. The network reached 683,520 active addresses on August 5th, and is now close to retesting the record of 743,730 set on May 12, 2021.
Presto Research analyst Min Jung commented on the reasons for this rise:
The record-breaking trading volume on Ethereum reflects the surge in DeFi activity. Stablecoins are at the center of this activity. Interest in yield-generating strategies has increased, particularly in anticipation of interest rate cuts. This has led to increased on-chain transactions: point farming, treasury usage, and more.
Jung also highlighted the impact of Ethena’s USDe stablecoin, which recently partnered with Aave and reached a market capitalization of $9 billion in a matter of weeks.
Kronos Research CIO Vincent Liu stated that regulatory clarity efforts in the US and institutional investors’ ETH accumulations played an important role in the increase in interest in Ethereum.
Liu also said:
“The ETH price is still moving cautiously. Confidence is rising behind the scenes, but the market is still searching for balance. This increase in on-chain activity has not yet been fully reflected in the price.”
Meanwhile, dozens of companies have recently adopted Ethereum-based treasury strategies to diversify their balance sheets with digital assets. The total value of ETH holdings among publicly traded companies has surpassed $7.5 billion.
According to Liu, approval of Ethereum staking ETFs could trigger a new surge in both price and on-chain activity. This approval could pave the way for ETH to become a yield-generating asset for institutional investors.
*This is not investment advice.
