The Ethereum network shows increased activity despite price stagnation. According to CryptoQuant, a surge in transactions has been observed recently.
Usage Spikes Despite Price Weakness
According to CryptoQuant's analysis, the recent surge in Ethereum's activity occurred alongside price stagnation that has been observed this month. While ETH's price fluctuated between $2,111 and $2,879, transaction volumes on the platform reached the third-highest levels in history. The last time similar figures were recorded was on January 14, 2024, when 1.96 million transactions were logged.
A Sign of Structural Strength Beneath Volatility
CryptoQuant notes that this uptick may indicate early signs of accumulation and network revival. Although it is not yet reflected in ETH's market price, long-term holders and developers appear to be positioning for what could be a new phase of growth amid short-term uncertainty.
Layer 2 Activity and Exchange Holdings Support the Trend
The report also highlights steady ETH exchange holdings and rising Layer 2 adoption as key reinforcing factors. Platforms like Arbitrum and Optimism continue to alleviate network congestion, further validating Ethereum's integral role in the Web3 landscape.
Despite the lack of strong price action, Ethereum's underlying fundamentals are strengthening. The spike in on-chain transactions could lay the groundwork for Ethereum's next move in terms of DeFi growth, price appreciation, or a broader altcoin cycle breakout.
