Ethereum has achieved a new record for daily transactions, surpassing 2.8 million over the weekend. This surge in activity occurred while gas fees remained near all-time lows, demonstrating the network's improved efficiency following several upgrades.
The heightened activity coincided with a price recovery for Ether (ETH), which held above $3,200. The main Ethereum network now facilitates regular transactions priced under $0.01 and specialized transfers costing around $0.05. Ethereum activity has seen a shift, with a decrease in NFTs and some token-based activities, but stablecoin transfers remain at peak levels.
The recent Ethereum activity indicates that users are drawn to the EVM ecosystem and are utilizing the main network as long as transaction costs are manageable. In contrast, Layer 2 (L2) solutions have seen a slowdown, with activity concentrating on a few top networks that offer the easiest bridging to Ethereum.
Ethereum Concentrates Economic Activity Again
Contrary to fears that the L1 chain would solely be used for utility, Ethereum continues to attract significant economic activity. The chain ranks among the top three in terms of application revenue, trailing only Solana and BNB Smart Chain (BSC). Many other L1 and L2 chains have seen a decline in recent months, as traders have returned to ETH for its higher liquidity and more accessible centralized facilities.
Ethereum applications generate approximately $1.36 million in fees daily, bringing it closer to BNB Chain. While still significantly behind Solana's $4.6 million in application revenues, the current low gas costs could encourage further expansion of Ethereum-based Decentralized Finance (DeFi).
Previously, some trades were not profitable due to gas costs. However, recent upgrades now allow even retail traders to participate in Decentralized Exchange (DEX) activity, token swaps, lending, and other actions without concerns about excessive expenses.
Due to the exceptionally low fees, Ethereum's inherent inflation from block rewards is also increasing. Over 18,600 ETH are produced each week; however, for the time being, these additional coins are being absorbed by staking deposits.
The largest volume of transactions originates from ETH transfers, USDT, and USDC transfers, along with several high-activity smart contracts. DEX activity remains elevated, particularly through dedicated routing services.
Ethereum Staking Reaches Peak Levels Since Dencun Upgrade
Another indicator of long-term confidence in Ethereum is the growing validator queue. Over 2.6 million ETH are currently awaiting deposit into the Beacon chain smart contract. The waiting time is approaching an all-time peak of over 45 days, marking the longest waiting period since the network's transition to proof-of-stake in 2021.
This shift towards staking is being driven by treasury companies and Exchange Traded Funds (ETFs), reflecting the influence of entities like Bitmine (BMNR), which is currently in the process of staking its treasury.