Ethereum (ETH) Continues to Shine in the Cryptocurrency Universe Despite a Stagnant Price Around $3250

Despite a stagnant price around $3250, far from the hoped-for $4000, Ethereum continues to shine in the cryptocurrency universe.

With an stagnant price around $3250, far from the hoped-for $4000, Ethereum continues to shine in the cryptocurrency universe.

Onchain activity explodes on Ethereum and L2

Since the beginning of 2024, Ethereum and layer 2 blockchains (L2) have seen their activity onchain jump by 127%. This meteoric growth is mainly explained by the increase in the number of users and transaction volumes.

According to a joint report by Coinbase Institutional and Glassnode, the average number of daily active addresses on Ethereum and L2 has seen an unprecedented increase.

These L2 platforms are described by Vitalik Buterin, co-founder of Ethereum, as the “ultimate playground for action”, attracting not only individuals, but also financial institutions eager for profits.

These L2 blockchains, such as Linea, Base, and Arbitrum, thus captured attention with 1.8 million active daily addresses. These solutions allow for low-cost transactions before transferring them to the main Ethereum blockchain for immutable recording, ensuring both efficiency and security.

The impact of the Ethereum Dencun upgrade on activity

One of the main reasons for this increase in activity is the Ethereum Dencun upgrade, which was deployed in March 2024. This update significantly reduced transaction fees, dropping them by 58% in the second quarter despite an increase in the number of transactions.

This cost reduction made Ethereum more accessible and attractive for users, thus boosting onchain activity. The variety of use cases, such as lending, staking and trading, also played a crucial role in this dynamic.

According to the report's authors, this adoption should continue as existing applications mature and new innovative applications are created.

This development is a clear sign of the rapid evolution of blockchain technology, which translates into increased adoption and the rise of Ethereum in the cryptocurrency field.

BlackRock and its ambitious bet on Ethereum

The investment giant BlackRock has recently strengthened its presence in the cryptocurrency market with the launch of new Ethereum (ETH) spot ETFs.

Despite regulatory hurdles and initial skepticism, these ETFs have garnered significant investor interest, demonstrating strong institutional confidence in Ethereum’s long-term potential. In just a few days, the iShares Ethereum Trust ETF (ETHA) accrued 77,000 ETH, approximately $277 million.

This strategic move by BlackRock, which already holds a dominant position in the Bitcoin ETF market, highlights the evolving landscape of digital assets and the growing intersection between traditional finance and blockchain technology.

According to Nate Geraci, president of the ETF Store, the integration of staking in Ethereum ETFs is a matter of “when, not if,” indicating a continued and positive evolution for the Ethereum ecosystem.

However, Tron is also positioning itself as a major competitor to Ethereum with its 81 billion transactions. As blockchains continue to develop and innovate, competition in the cryptocurrency space intensifies, promising exciting developments to come.

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