Ethereum Daily Transaction Volume Approaches Historical Highs, Driven Primarily by Stablecoins and Uniswap Trading

Ethereum Daily Transactions Near Historical Highs

Data from the blockchain explorer Etherscan shows that the daily transaction count on Ethereum reached 1.87 million on Tuesday, gradually approaching the historical peak of 1.96 million set on January 14, 2024. For a blockchain that has faced declining user demand over the past year and has seen its market share divided by competing chains like Solana, this is a positive signal.

In fact, Solana’s transaction count today has soared to 22 million, and despite Ethereum’s mainnet daily transaction numbers being “only” nearly 2 million, this indicates that the network’s transaction activity has nearly doubled since the beginning of this year.

Jake Kennis, a senior research analyst at Nansen, told Decrypt that the primary activities driving the increase in Ethereum’s transaction volume come from stablecoins Tether, USDC, and the decentralized exchange Uniswap.

He stated, “For traders, monitoring transaction counts is an important indicator of market activity, and it should be complemented with other on-chain data, such as gas prices and transaction fee situations, to comprehensively assess the state of on-chain activity.” Here, on-chain activity refers to financial operations that occur natively on the blockchain network.

The rise in stablecoin transaction volume is likely related to changes in U.S. policy. Sara Gherghelas, a senior analyst at DappRadar, noted that the passage and signing of the stablecoin regulatory bill, the GENIUS Act, provide a legal framework for stablecoin operations in the U.S., further boosting market confidence. She added:

Analysts have pointed out that over the past month, Ethereum ETFs have even outperformed Bitcoin ETFs. Gherghelas added:

This surge in transaction volume is undoubtedly a major boon for decentralized finance (DeFi). According to DeFiLlama data, the total value locked (TVL) in DeFi has now reached $137 billion, with Ethereum accounting for as much as 59% of that.

However, Gherghelas also issued a reminder that whether such high activity levels can be sustained remains to be seen. She said: