Key Takeaways
- Ethereum daily transactions hit an all-time high of 1.74 million.
- Surge driven by stablecoin usage, DeFi, and ETH treasury adoption.
- Institutional interest grows with $7.5B in ETH held by public firms.
Stablecoins and ETH Treasury Strategy Fuel Onchain Activity
Ether is the donor of records among all cryptocurrencies on daily transactions that have reached an all-time high of 1.74 million on August 5, exceeding the previous one of 1.65 million set in May 2021. It is remarkable that last July was also the month that recorded the highest volume in Ethereum’s history, with 46.67 million transactions in total.
According to the analysts, the reason is the growth in DeFi activity and stablecoin uptake, which result in users’ activity in yield farming, point strategies, and onchain treasury deployments. Min Jung of Presto Research states that the expectation of rate cuts and good yield conditions have attracted more users to the Ethereum ecosystem.
One of the reasons is Ethena’s USDe, which is quite fast going after its market cap of $9 billion that it has crossed and the partnership with the lending protocol Aave that it has concluded. The latter is the reason for the skyrocketing of ETH’s price adoption, which is evolving from mere speculation to becoming the main infrastructure for digital finance.
Institutional Confidence and Regulatory Momentum Boost Adoption
Besides, the number of active addresses in the Ethereum network has jumpedz as well and stood at 683,520 on August 5, which is very close to the all-time record of 743,730. Thus, it indicates that the user base is expanding, and there is increased institutional participation.
The chief investment officer of Kronos Research, Vincent Liu, pointed out that the development of Ethereum’s utility and the progress in U.S. regulations have made institutional confidence even stronger. More than $7.5 billion in ETH is now owned by public companies as part of their treasury diversification strategies.
While Ethereum’s price hasn’t fully reflected the rising onchain activity, Liu suggests that approval of staking-based Ethereum ETFs could act as a catalyst. These instruments would turn ETH into a yield-bearing asset for institutions, potentially driving further adoption and price momentum.
Summary
Ethereum’s transaction volume and user activity are at record highs, poweredz by stablecoins and institutional treasury moves. Market sentiment could shift with ETF approvals.
Also Read: China Warns Iris-Scanning Crypto Threatens Security
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