This week, transaction volume on the Ethereum network reached a record high of an average of 1.74 million daily transactions, surpassing the previous peak set in 2021. This growth is linked to increased staking and regulatory clarity that boosts institutional confidence.
New Records for Ethereum Transactions
The Ethereum network saw transaction volumes hit a record level, reaching an average of 1.74 million transactions per day. This result surpasses the previous record set on May 12, 2021, of 1.65 million. Such growth aligns with increases in staked Ether and significant regulatory changes.
SEC Regulatory Clarity and Institutional Investor Interest
The Securities and Exchange Commission (SEC) issued guidance clarifying that certain liquid staking activities and staking receipt tokens do not constitute securities under the Securities Act of 1933. This reduces legal uncertainty for institutions and platforms offering liquid staking products and is driving demand for tokens like ETH.
Increase in Corporate Holdings of Ethereum
Public companies classified as 'crypto treasury companies' have significantly increased their Ethereum holdings. The total current ETH holdings across public companies stand at $11.77 billion, indicating a rising interest in staking and treasuries. Ethereum co-founder Vitalik Buterin commented on the trend of using Ethereum in corporate treasuries, noting that it offers additional options for investors.
Record transaction volumes in Ethereum indicate growing institutional confidence driven by regulatory clarity and increased corporate treasury holdings. These shifts could fundamentally impact ETH's supply dynamics, supporting its price appreciation.
