Ethereum Network Sets New All-Time High for Daily Transactions on December 31st, Reaching 1.87 Million Transactions

The Ethereum network processed a record 1.87 million daily transactions on December 31, 2025, surpassing previous highs from the 2021 NFT and DeFi boom. This milestone marked a significant increase in activity, driven by improved network efficiency and rising institutional interest in tokenized assets. The surge in transactions coincided with a record number of active and new Ethereum addresses, signaling renewed user engagement.

Ethereum's network saw its highest daily transaction volume since 2021, according to The Block's data. The seven-day moving average reached 1.87 million transactions, outpacing the prior peak of 1.61 million in May 2021 and the more recent high of 1.73 million on August 9, 2025. This record follows significant upgrades, including Pectra and Fusaka, which improved scalability, reduced gas fees, and enhanced overall network performance.

Gas fees on the Ethereum network dropped to an average of 17 cents per transaction, down from $2.15 six months earlier. Despite the surge in activity, fees remained stable, a notable improvement attributed to protocol-level optimizations and increased gas limits according to analysis. This development makes Ethereum more accessible for everyday users and developers, supporting broader adoption in DeFi and NFT markets.

Why Did This Happen?

The recent surge in Ethereum's transaction volume and address activity has been primarily driven by network upgrades that have slashed fees, boosted scalability, and attracted institutional participation via ETFs and real-world asset tokenization according to data. Pectra and Fusaka upgrades introduced key improvements, such as increased blob throughput, account abstraction, and validator performance enhancements. These changes have significantly reduced costs while advancing Ethereum's rollup-centric roadmap.

Ethereum's network upgrades have also supported the growth of DeFi and NFT activity. In December 2025, DeFi transactions accounted for a large share of the network's usage, while NFT marketplaces saw renewed interest. Layer-2 solutions further contributed to Ethereum's transaction throughput, enabling more efficient processing while maintaining security on the mainnet according to industry reports.

How Did Markets React?

Despite the record transaction volume, Ethereum's price remained relatively stable in late 2025. ETH traded at around $2,980 on December 31, a price point that missed earlier predictions for a $25,000 end-of-year target. However, analysts remain optimistic about Ethereum's long-term potential. The network's TVL is expected to rise significantly in 2026, fueled by stablecoin growth and tokenized asset adoption. Additionally, regulatory clarity in the U.S. and institutional investment via ETFs could further support Ethereum's price and usage according to market analysis.

What Are Analysts Watching Next?

Looking ahead, Ethereum's network is set to undergo another round of major upgrades in 2026, with Glamsterdam and Hegota expected to enhance performance and decentralization. Analysts are also monitoring ETF inflows and regulatory developments, which could shape investor sentiment and market dynamics according to market forecasts. The potential passage of the Clarity Act in the U.S. could provide long-term regulatory certainty for Ethereum, encouraging increased investment from large financial institutions according to analysts. These factors, combined with Ethereum's technical progress, position the network for continued growth and adoption in 2026 and beyond.

Ethereum's achievements in 2025 highlight the impact of ongoing upgrades on network scalability and user experience. With lower fees, higher transaction throughput, and a robust ecosystem of DeFi and NFT activity, Ethereum continues to solidify its position as a leading blockchain platform. Future developments, including regulatory clarity and institutional adoption, will be critical in shaping the network's trajectory in 2026 and beyond.