Ethereum Sees Record On-Chain Activity Amid New User Surge

Ethereum’s on-chain metrics are painting a picture of substantial network growth. According to blockchain analytics firm Glassnode, the retention of new activity on the network has roughly doubled this month, rising from approximately 4 million to around 8 million addresses. This sharp spike in the “New” cohort, as highlighted in their data, indicates a significant influx of first-time wallets interacting with Ethereum, suggesting the arrival of a fresh user base rather than activity being driven solely by existing participants.

This user growth is corroborated by soaring transaction volumes. Daily transactions on the network hit a record high of 2.8 million recently, a figure that represents a staggering 125% increase from the same period last year. Furthermore, data from Etherscan shows that the number of active addresses has more than doubled year-over-year, moving from roughly 410,000 to over 1 million. These figures collectively point to a broad-based and sustained increase in real engagement, moving beyond short-lived speculative spikes.

Analysts and observers link this transaction boom to several key factors. Rising stablecoin activity and lower effective fees are cited as primary contributors. A significant portion of this growth involves the migration of transaction execution to Layer 2 (L2) scaling networks, while settlement and finality remain securely anchored on Ethereum’s main chain. This architectural shift helps push down gas costs for users while maintaining the security guarantees of the base layer, making network interaction more accessible.

Concurrently, Ethereum’s proof-of-stake mechanism continues to see robust participation. The total amount of ETH staked has climbed to nearly 36 million, adding another layer to the network’s tightening supply dynamics. This staking activity not only secures the network but also effectively locks up a substantial portion of the circulating supply, creating a fundamental backdrop of reduced liquid availability.

Despite these powerfully positive on-chain signals, market behavior remains notably careful. While strength in traditional US equities has provided a stabilizing backdrop for crypto prices, capital flowing into Ethereum appears selective. Positioning is described as conservative, with many traders preferring to wait for clearer directional signals regarding ETH’s price rather than attempting to predict an immediate breakout. As a result, ETH has been consolidating, recently trading near a two-month high of $3,400 before settling around $3,300, reflecting a tug-of-war between renewed network demand and persistent investor caution.

This divergence between network health and price action is a central theme for analysts. Firms like LVRG Research have reported that the increasing transaction counts and staking activities are encouraging for the network’s fundamental health. Some traders argue the current compression in price could precede a significant move. However, the consensus from recent analysis suggests the market is in a repair phase rather than a confirmed uptrend. Overhead supply continues to constrain sustained advances, with many participants awaiting a clear reclaim of key long-term resistance levels, such as the 200-day Exponential Moving Average (EMA), before committing large-scale capital.

The current landscape presents a nuanced picture for market participants. On-chain data from Glassnode and Etherscan unequivocally shows material improvement in network health—more users, more transactions, and higher staking participation. This foundation supports a thesis of cautious optimism. For shorter-term traders, the defined range in ETH’s price action may present tactical opportunities.

For long-term investors seeking conviction, however, the data suggests patience. The improved fundamentals have not yet been mirrored by commensurate price appreciation, indicating that the market is still digesting this growth and weighing it against broader macroeconomic and technical factors. The path of least resistance may require cleaner technical confirmation, such as a sustained break above major resistance levels, before the robust on-chain activity catalyzes a sustained rally in ETH’s valuation.