Ethereum’s network activity is picking up serious pace, and this uptick might be setting the stage for a bigger market move. As the number of daily transactions climbs and user engagement increases, analysts are starting to ask: is Ethereum gearing up for a new phase of growth?
Over the past few weeks, Ethereum’s on-chain activity has seen a noticeable increase. The number of daily transactions is now at its highest level in over a year, according to data shared by crypto analyst Cas Abbe. This rise is not a one-time spike — it appears to be part of a broader trend of growing Ethereum usage.
Network Activity Signals Growing Utility
What makes this surge in Ethereum daily transactions significant is that it’s not just driven by price hype or short-term speculation. Instead, it reflects a deeper trend: Ethereum is being used more often, by more people. Active addresses are climbing, indicating that existing users are interacting with the network more frequently. At the same time, new addresses are also on the rise, showing that fresh participants are entering the Ethereum ecosystem.
In simple terms, more people are using Ethereum — and they’re using it regularly. This kind of organic growth is exactly what long-term investors and developers like to see. It signals that the Ethereum blockchain is providing real value and attracting users beyond short-term trading cycles.
1.7 Million Daily Transactions and Counting
According to the latest data, Ethereum is now processing around 1.7 million transactions per day — a number not seen in more than a year. This level of activity suggests that the network is not only holding up under demand but also scaling to meet new use cases.
At the same time, Ethereum’s EIP-1559 upgrade continues to quietly shape the asset’s supply side. This protocol improvement, introduced in 2021, removes a portion of ETH from circulation with every transaction. As a result, the overall supply of Ethereum is growing slower — and at times, even shrinking.
Cas Abbe noted that net ETH emissions remain close to neutral, even during volatile market conditions. That means Ethereum is not being inflated at the same rate as in the past, making it potentially more scarce over time — especially if demand continues to rise.
Tightening Supply Meets Rising Demand
This powerful combination — rising usage and a flattening or even deflationary supply curve — can create the kind of pressure that pushes prices higher. While Ethereum’s price hasn’t fully responded to these developments just yet, the foundations are being laid for a possible breakout.
The current market environment is showing hints of strategic accumulation. Analysts are beginning to highlight changes in Ethereum reserves, with one significant observation coming from crypto commentator Crypto Patel.
Strategic Reserve Grows to $10 Billion
In April 2025, Ethereum’s strategic reserve was estimated at around $200 million. Just a few months later, that number has ballooned to over $10 billion, according to Crypto Patel. That’s a 50x increase in less than half a year.
This surge is likely not the result of a single transaction or whale activity. Instead, it reflects a steady and broad shift in how institutions and large-scale investors are viewing Ethereum. A growing strategic reserve points to confidence in the network, as well as a move toward longer-term holding and staking behavior.
Such accumulation is often a sign of preparation for the next big move in the market — whether that’s related to an upcoming ETF decision, a shift in Bitcoin dominance, or broader macroeconomic trends that could drive crypto adoption.
Price Still Consolidating — For Now
Despite the rise in Ethereum daily transactions and growing reserve size, ETH’s price has yet to explode. As of now, ETH is trading near $3,553, based on data from TradingView.
While this level represents a healthy recovery from its 2022 lows, it’s still below the all-time high of nearly $4,900. However, the recent spike in usage and accumulation could lay the groundwork for Ethereum to challenge those highs again — especially if broader crypto market momentum returns.
For now, Ethereum appears to be in a holding pattern. But under the surface, the network is becoming more active, its supply is tightening, and investors are quietly preparing for what may come next.
Conclusion: A Quiet Acceleration Could Turn Explosive
Ethereum daily transactions hitting new highs is more than just a technical detail. It’s a sign that Ethereum’s core value proposition — as the leading smart contract and decentralized application network — is still intact and growing. With increased adoption, strong fundamentals, and a favorable supply setup, Ethereum could be poised for a major move.
If current trends continue, the ETH price may eventually catch up to the network’s performance, potentially signaling the start of a new bull phase. As always, time will tell — but all eyes are now on Ethereum’s next steps.
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