Ethereum’s daily transaction count has reached a key milestone, surpassing 1.6 million for the first time in four years. It is a key departure from the old transaction count of between 900,000 to 1.2 million. The spike is evidence of Ethereum’s rising activity in decentralized finance (DeFi) and increasing user engagement.
Increase in Network Activity
Recent statistics indicate a steady upward trend in the number of transactions in Ethereum. CryptoQuant analysts used a 14-day simple moving average to eliminate normal fluctuations and determined that daily transactions have ranged from 1.6 million to 1.7 million. This trend is a radical deviation from established patterns over the last four years.
Secondly, Etherscan statistics also confirm this growth, suggesting that Ethereum’s increasing usage persists despite market volatility. Even in the face of negative sentiment throughout March, the network recorded an average 1.2 million transactions daily, which works to demonstrate a solid foundation for the recent breakout.
DeFi and NFT Contributions
The surge in Ethereum’s activity volume is directly linked to the rise of decentralized finance and NFTs. Analysts have attributed the reasons for the surge to the functions performed by Ethereum as a liquidity source, a lending platform, and a network for transferring stablecoins. IntoTheBlock sees elevated gas usage, which reflects greater smart contract usage.
Additionally, ETH NFT sales have risen and contributed to general growth in the transactional volume. It is another reflection of Ethereum’s versatility and position in the broader cryptocurrency ecosystem.
Price and Institutional Interest
Concurrently with the rise in volume of transactions, the price of Ethereum has also increased. ETH value increased to more than $4,400 since the start of the week. Increased institutional appetite is also evident, with digital asset treasury businesses now holding a greater proportion of total ETH supply (4%) than Bitcoin (3%). This indicates that tastes are shifting among corporate investors.
Analysts regard this crash of high on-chain demand and price momentum against each other as a positive sign of things to come for Ethereum. One trader was likening ETH’s price setup to a “ladder,” with targets at $6,500, $8,000, and even $10,000 in case of continuation.
With ETH constantly growing, the implications on its market performance and use are still great.
