Ethereum News Today: Ethereum Daily Transactions Near 1.9M as DeFi Costs Drop and Ether Price Surges 50%

Ethereum’s transaction volume has seen a significant increase, nearing its historical peak of 1.9 million transactions per day, as reported in January 2024 [1]. This growth has attracted attention from both retail traders and institutional observers, reflecting a convergence of technical enhancements, positive market sentiment, and a resurgence of on-chain activity. Analysts attribute this surge to a combination of factors, including an increase in network capacity, a rising ether price, and a drop in transaction costs, particularly for DeFi protocols and stablecoin transfers [1].

The Fidelity Digital Assets Research Team highlighted that Ethereum’s Layer 1 has experienced a surge in transactions due to a 50% increase in the gas limit since March. This improvement has allowed more transactions to fit into each block, significantly enhancing throughput and reducing network congestion. As a result, stablecoin transfer costs have consistently remained below a dollar, making DeFi activity and peer-to-peer payments more affordable. Fidelity further noted that DeFi remains the top contributor to ETH burns, emphasizing its pivotal role in driving network usage [1].

Ether’s recent price rally has also played a key role in stimulating on-chain activity. Ray Youssef, CEO of a crypto app, described the current market environment as reminiscent of the early stages of “alt-season,” a period marked by heightened interest in alternative cryptocurrencies. The mid-year price gains, which saw ether exceed $4,200 recently, have triggered a wave of speculative trading, liquidity provision, and token movement across decentralized platforms. This renewed activity has further amplified demand for Ethereum-based transactions [1].

According to Jake Koch-Gallup of Messari, Uniswap swaps and USDT and USDC transfers consistently rank among the top five gas consumers on the Ethereum network. This suggests that decentralized exchanges and stablecoin transactions remain the primary drivers of demand. He noted that rising prices typically attract more participants to the blockchain, driven by speculative trading, new incentive programs, and increased usage of Layer 2 solutions. These dynamics, in turn, contribute to higher Layer 1 transaction volumes, both directly and through settlement [1].

Corporate participation has also played a role in shaping the current landscape. With favorable regulatory signals, companies are increasingly engaging with Ethereum, viewing it as a key player in the broader crypto ecosystem. Youssef suggested that this trend is providing a more stable foundation for Ethereum’s financial infrastructure, although the direct impact on transaction counts is limited. Meanwhile, Koch-Gallup emphasized the importance of continued fee-generating activity on the mainnet or improved mechanisms for Layer 2s to transfer value back to Ethereum in order to sustain the current momentum [1].

Despite the encouraging signs, challenges remain. With blob fees near zero and reduced demand for Layer 1 execution, ETH burn has slowed, and the network has occasionally turned inflationary. Sustaining the current trend will depend on either a resurgence in mainnet activity or better integration of Layer 2 solutions that can feed value back to the main chain. This issue—how Ethereum can capture more of the value it secures—is central to discussions about the protocol’s future development [1].

Looking ahead, Ethereum’s roadmap includes further scaling proposals and enhanced Layer 2 integration, which could help address bottlenecks and create a more sustainable environment for high transaction volumes. For now, the data paints a clear picture: transaction counts are rising, DeFi costs are falling, and both retail and corporate participation are robust. Whether Ethereum can convert this momentum into long-term adoption and ecosystem resilience will likely determine its trajectory over the coming months [1].

Source: [1] ETH Transaction Volume Climbs on Price Rally, Cheaper DeFi Costs (https://www.coindesk.com/tech/2025/08/11/eth-transaction-volume-climbs-on-price-rally-cheaper-defi-costs)