Ethereum Supply Surges, Price Stumbles; Network Activity Thrives

Ethereum's supply has reached its highest level since February 2023, while its price continues to struggle. Despite the increase in supply, the network's activity and institutional interest have shown signs of resilience and growth.

The number of active addresses on the Ethereum network has surged by 37% from its November low, reaching 575,000. This increase in user engagement is accompanied by a rise in daily transactions, which have escalated to 1.3 million. The decentralized finance (DeFi) sector, particularly Uniswap, has contributed to Ethereum's sustained popularity, with Uniswap commanding a 22% market share and facilitating nearly $1 billion in daily transaction volume.

Institutional interest has also been a driving factor behind Ethereum's momentum. Last week, World Liberty Financial, a project associated with Donald Trump, made headlines with its purchase of $47 million worth of Ethereum, alongside investments in other ecosystem tokens such as AAVE, LINK, and ENA.

However, the fees generated by Ethereum have seen a decline, with $2.22 million accrued in 24 hours, a decrease from nearly $4 million in December 2024. This downward trend in fee generation contrasts with the positive indicators of network activity and institutional engagement.

The pressure from stakeholders for swift development within the Ethereum Foundation may shape the network's technical roadmap moving forward. As competition intensifies in the Layer 1 space, these developments are likely to shed light on Ethereum's changing role within the expansive cryptocurrency ecosystem.