Ethereum Sees Record 2 Million Daily Transactions Amid Sustained Low Gas Fees

Ethereum's Layer 1 network has recently achieved unprecedented levels of activity, with daily transactions surpassing 2 million and active addresses exceeding 1 million, marking new all-time highs. This surge in network usage, as reported by blockchain analytics firm Token Terminal, indicates robust and fundamentals-driven growth for the leading smart contract platform. Notably, this record activity has occurred while average gas fees remain near historic lows, a significant departure from previous periods of high network congestion.

The remarkable increase in on-chain activity is largely attributed to the growing adoption of Layer-2 scaling solutions such as Arbitrum, Optimism, and Base. These networks process transactions off-chain, bundling them before settling on the Ethereum mainnet, thereby significantly reducing the burden on Layer 1 and keeping transaction costs down. This efficiency gain allows for greater user engagement without the prohibitive fees that characterized earlier periods of high demand.

Joseph Young, a prominent crypto analyst, highlighted this development, stating in a recent tweet, > "this is how we know current eth momentum is purely organic and fundamentals-driven. ethereum transactions and network activity hits an all-time high. h/t @tokenterminal". This perspective suggests that the current growth is fueled by genuine utility and demand rather than speculative hype. The expansion of smart contract creation in 2025, primarily tied to decentralized finance (DeFi) rather than NFTs or meme tokens, further supports this view.

Beyond transaction volumes, Ethereum's ecosystem has also seen a substantial increase in stablecoin activity, with the network adding approximately $5 billion in stablecoins in a single week, bringing the total supply to an all-time high of $165 billion. This surge underscores Ethereum's critical role as the primary infrastructure for dollar-pegged digital assets and a preferred platform for financial applications. Institutional interest, particularly through spot Ethereum ETFs, has also contributed to the network's momentum and price appreciation.

Analysts suggest that Ethereum's maturing infrastructure, including the transition to Proof-of-Stake and the implementation of upgrades like EIP-4844 (proto-danksharding), is paying off by enhancing scalability and efficiency. This sustained growth, coupled with accessible transaction costs, positions Ethereum for continued leadership in the Web3 space. The current environment offers an optimal opportunity for users to interact with on-chain protocols efficiently and affordably.