Ethereum Daily Transactions Hit All-Time High, Surpassing 2021 NFT Boom

Ethereum's daily transactions hit 2.2 million in late December 2025, setting a new record and surpassing previous highs from the 2021 NFT boom. The surge reflects growing usage of the network, with average fees per transaction falling to just 17 cents, indicating improved scalability. Despite the price of Ether (ETH) trading near $2,900, the network's utility and adoption metrics have shown robust growth.

Layer-2 solutions have played a significant role in driving Ethereum's usage, as developers increasingly use the mainnet for settlement. Token Terminal reported 8.7 million smart contracts deployed in Q4 2025, signaling strong developer engagement. This trend is supported by institutional adoption, as large firms begin to tokenize real-world assets and expand their on-chain activities.

Regulatory clarity and policy developments are also contributing to Ethereum's growth. The U.S. House passed the Digital Asset Market Clarity Act in July 2025, helping to define oversight responsibilities between the SEC and CFTC. Analysts believe this could encourage more institutional investment and provide long-term certainty for the ecosystem.

Why Did This Happen?

Ethereum's growing transaction volume is driven by multiple factors. The network's gas limit and blob capacity were increased in 2025, improving scalability and data handling. These upgrades, along with advancements in zkEVMs and PeerDAS, have made Ethereum a more attractive settlement layer for decentralized applications according to Vitalik Buterin.

The rise in stablecoin activity is another key driver. Over half of stablecoin transactions occur on Ethereum, and the total value of stablecoins is expected to reach $500 billion by 2026. This growth is expected to boost Ethereum's TVL and overall network utility.

How Did Markets React?

Market participants have responded to Ethereum's growth with mixed signals. While on-chain activity and developer engagement have surged, the price of ETH has lagged. In December 2025, Ethereum's TVL stood at around $68.2 billion, but forecasts predict it could rise tenfold by 2026. Analysts remain cautious, noting that exchange reserves for ETH have risen to their highest level in over a month.

Investors are also monitoring the performance of crypto ETFs. Galaxy Digital predicts that Ethereum ETFs could see over $50 billion in inflows by 2026, driven by institutional adoption. However, the recent price drop has raised concerns about the sustainability of current trends according to market analysis.

What Are Analysts Watching?

Crypto analysts are closely watching Ethereum's price action and broader market conditions. Some predict a bullish reversal, citing a bullish divergence in the RSI and reduced selling pressure. Others remain skeptical, noting that Bitcoin's cycle could affect Ethereum's price trajectory.

Ethereum co-founder Vitalik Buterin has emphasized the importance of focusing on infrastructure and scalability for 2026. He has called for renewed efforts to build a decentralized, censorship-resistant internet. This aligns with institutional efforts to tokenize real-world assets and expand Ethereum's role in financial services according to industry reports.

Investors should also monitor regulatory developments in 2026. The potential passage of the Clarity Act could provide regulatory certainty and encourage more financial institutions to enter the Ethereum ecosystem. At the same time, market sentiment and macroeconomic conditions will remain key variables according to financial analysts.

As Ethereum moves into 2026, the focus will remain on balancing growth with price performance. While the network's utility continues to expand, market participants will be watching for signs that increased adoption will translate into stronger price action.