Ethereum Network Thrives as On-Chain Activity Hits Five-Month High - Crypto Economy

TL;DR

• Ethereum’s on-chain activity surged to a five-month peak, driven by growing DeFi interactions, smart contract usage, and stablecoin transfers.
• ETH transfers recently surpassed USDC transactions, signaling renewed network demand.
• The price of ETH recovered above $4,100, supported by higher liquidity in lending protocols and signs of increased risk-taking in decentralized finance.

Ethereum’s on-chain activity has reached its highest point in five months, with daily gas usage climbing steadily. The rise in engagement is largely fueled by DeFi operations, stablecoin transactions, and smart contract deployments, highlighting the network’s continued relevance for traders and developers.

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ETH transfers now surpass USDC transfers, reflecting heightened confidence in Ethereum as both a value transfer and application platform. Network participants are increasingly experimenting with new financial instruments, boosting overall ecosystem robustness.

Growing Demand For DeFi And Smart Contracts

The daily gas used on Ethereum has surged to levels not seen in three months, while L2 activity has slowed slightly. L2 solutions continue to capture a significant share of revenue, representing over 15% of economic activity, but the bulk of liquidity remains on Ethereum’s L1 chain. Daily active addresses have increased to around 550K, a small but notable uptick suggesting steady participation in the ecosystem. Developers are also deploying innovative dApps, contributing to higher smart contract engagement.

Lower gas fees on L1 have also contributed to the surge. DEX swaps are averaging $0.21, and gas prices are under 1 gWei. The most active smart contracts remain Tether and Circle, with DeFi platforms consuming 48 ETH per day in gas fees. Interestingly, a phishing contract has briefly appeared among top gas consumers, signaling the ongoing need for user vigilance. Additional activity comes from NFT minting incentives, routers, and aggregator usage, pointing to growing demand for DEX trading and perpetual futures.


ETH Price Recovers And Lending Activity Expands

The increase in on-chain activity has coincided with ETH’s price recovery above $4,100. Growing liquidity in lending protocols, especially Aave with over $32B locked, supports this rebound. Liquidatable ETH positions have doubled to $2.2B, showing that traders are willing to take on larger risk positions.

Smaller loans start around $3,600, while major positions now range near $1,800 per ETH. This shift suggests renewed confidence in the market following recent volatility. The ecosystem remains highly adaptable, encouraging further experimentation across both financial and gaming dApps. Ethereum’s ecosystem demonstrates resilience, recovering quickly from earlier market disruptions

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