- Report by Crypto Quant shows that Ethereum network activity has reached an all-time high of 1.3 million transactions per day.
- It was previously achieved in February.
- Low fees seem to be the biggest contributor, along with layer-2 volumes.
- However, the price still lags at $2,100 at press time.
- Failing retail demand for ETH, token sales by the Ethereum Foundation, and a market downturn are among the biggest drivers of the price crash.
Ethereum Hits 1.4 million Daily Transactions
As depicted in the chart, the 7-day Simple Moving Average (SMA-7) for Ethereum’s “Total Transfer Count” has once again breached the 1.3 million mark, returning to its All-Time High (ATH) previously recorded in mid-February.
Source: https://cryptoquant.com/insights/quicktake/69d892ab939b763fb0153338-Ethereum-Network-Activity-Reaches-New-ATH-A-Bullish-Fundamental-Divergence
The reason for such a high rate of transaction activity on the Blockchain seems to be the lowering of fees, which, compared to 2024, fell by at least 99%.
Besides, layer 2 networks, stablecoin transfers, and institutional demand also contribute a decent volume. Ethereum has emerged as a preferred blockchain for tokenizing traditional assets such as money market funds, stocks, bonds, and even real estate.
The data above shows that Ethereum is not just being held as an investment asset. It is rather being utilized by the network participants.
What Stops Ethereum From Rallying?
Usually, we have seen that when network activity hits an all-time high, a price rally follows. This happens because wider adoption drives more demand for Ethereum as both a utility and an asset.
A major reason we think the price has been crashing is a broad downturn in crypto markets, with even Bitcoin falling 50% from its all-time high. A global conflict, an oil crisis, and a broader economic downturn have worsened the situation due to a lack of funds.
At A2Z Cryptocurrencies, we have been keeping a keen eye on the Federal Reserve meeting of June 2026, where prices are expected to be cut by 0.5% or 1%.
DISCLAIMER: All information presented on A2Z Cryptocurrencies (https://a2zcryptocurrencies.com) is purely for informational and educational purposes and does not amount to financial advice in any way. Please consult a financial advisor before investing.
