Ethereum network transaction volume reached an all-time high on Dec. 24 even as the cryptocurrency's price remained near $3,000, creating a widening gap between on-chain activity and market valuation. The divergence has intensified debate over whether fundamental network strength is building beneath subdued price performance.
What Happened: Record Transaction Volume
Data from CryptoOnchain showed Ethereum's seven-day average transaction count climbed to approximately 1.73 million, the highest level in the network's history.
ETH traded around $2,950 at the time, well below its 2021 and 2025 peaks.
The analyst attributed the surge to Layer-2 settlement activity, increased DeFi usage and steady stablecoin transfers. The growth occurred without corresponding fee spikes, indicating improved network efficiency under higher demand.
On-chain data from late December showed large holders adding positions, with wallets containing between 10,000 and 100,000 ETH increasing combined balances above 21 million coins.
Exchange reserves declined by more than 4 million ETH over the past year.
Analyst Amr Taha reported on Dec. 25 that approximately $1.4 billion worth of ETH flowed into Kraken and Binance over 48 hours. The deposits followed substantial USDT withdrawals from centralized platforms, a pattern that typically appears during selling pressure or defensive positioning.
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Why It Matters: Fundamental Disconnect
ETH traded just under $3,000 at press time, up less than 1% in 24 hours and flat over seven days. The token declined nearly 9% over two weeks and approximately 14% over the past year.
The cryptocurrency moved within a tight range between $2,900 and $3,000, with volatility lower than earlier in the quarter.
Analysts continue monitoring the $3,100 level, which has capped multiple rallies in recent years.
Higher transaction volume increases ETH burn through EIP-1559, gradually reducing supply growth. With Ethereum hosting most DeFi value and stablecoin issuance, the gap between network demand and price has become more pronounced for investors.
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