Ethereum Transactions Surge 62% to 1.6 Million Despite Price Drop

Ethereum's daily transactions have surged past 1.6 million, indicating a significant rise in demand despite the cryptocurrency trading well below its all-time high of $4,000. This surge in network activity marks the highest level since 2023, with Ethereum currently trading around $2,400. The increase in usage suggests that Ethereum's utility is growing independently of its price trends, as the network has seen fluctuating transaction volumes ranging from 800,000 to 1.2 million over the past months.

Historically, Ethereum's on-chain activity has closely followed its price trends, peaking during bullish rallies. However, the current rise in on-chain activity is unique as it occurs during a corrective market cycle, where the price has remained relatively stable. This decoupling of usage from price trends highlights Ethereum's growing utility even in tempered market conditions.

Ethereum is also experiencing strong capital inflows through cross-chain bridging, further reinforcing its growing dominance. In the last 24 hours, Ethereum led all networks with over $250 million in bridged inflows. Additionally, the stablecoin supply on Ethereum grew by $500 million, demonstrating a significant demand for on-chain liquidity. This influx of capital is a clear indication of the growing trust and confidence in Ethereum's infrastructure.

Other networks, such as Avalanche, saw around $40 million in inflows, while chains like Polygon, Solana, and WorldChain experienced minimal gains. In contrast, newer networks like Base and Arbitrum recorded significant outflows, with Base alone losing more than $250 million. This shift in capital flow underscores a migration of capital toward Ethereum from alternative Layer 1 (L1) and Layer 2 (L2) solutions. Additionally, several newer networks, including Linea, zkSync Era, and StarkNet, saw net capital exits, hinting at waning interest in emerging ecosystems.

Despite the strong network activity and capital inflows, Ethereum's price action has lagged. As of the latest data, Ethereum is priced at $2,437.13, showing a 7.01% monthly decline. Its market capitalization remains robust at $294.2 billion, with a 0.39% daily gain. The fully diluted valuation aligns with the market cap, indicating supply stability. However, the 24-hour trading volume has dropped by 40.89% to $7.78 billion, pushing the volume-to-market cap ratio to just 2.74%. Ethereum’s price hit a monthly peak of $2,728.20 in early June before falling below $2,250 mid-month. Resistance holds near $2,800, while short-term support is visible at $2,300, framing the asset in a volatile but actively used phase.