On December 24, 2025, Ethereum, which is a popular blockchain platform and cryptocurrency, saw a huge increase in activity. Ethereum’s on-chain usage, which means the transactions and operations conducted directly on its network, hit its highest level ever. Despite this record usage, Ethereum’s price stayed close to $3,000, struggling to climb to its earlier heights.
This situation has sparked discussions among experts and investors. Some think Ethereum’s fundamentals, such as its technology and network use, are quietly getting stronger. Others point out that the price isn’t reflecting this growth due to current market conditions.
Ethereum’s Record Transactions Show Rising Activity
According to data shared by CryptoOnchain (a source for tracking cryptocurrency activity), Ethereum reached a new milestone. Over a period of seven days, the average number of transactions on its network rose to about 1.73 million. This is the highest number of transactions ever recorded in the history of Ethereum. At the same time, Ethereum’s price was about $2,950. This is much lower than its peak values in 2021 and 2025, showing a clear difference between how much the network is being used and how its value is perceived in the market.
Why has network activity increased so much? Experts say it’s due to a few reasons:
- Layer-2 networks: These are tools designed to make blockchains like Ethereum faster and cheaper to use by processing some activities outside the main blockchain. Learn more about Layer-2 networks.
- DeFi (Decentralized Finance): Ethereum is a big player in DeFi services, which allow people to lend, borrow, or trade assets without involving traditional banks. Learn more about DeFi.
- Stablecoin transfers: Stablecoins are types of cryptocurrency that are designed to stay at a stable value, often equal to government currencies like the US dollar. These coins are heavily used on Ethereum’s network. Learn more about stablecoins.
Interestingly, this rise in activity didn’t cause Ethereum’s transaction fees to spike sharply, like it had in the past. This suggests that Ethereum has become better at handling more demand without overloading its system.
More Data Points to Changing Trends
Other data confirms that Ethereum is being used more but isn’t reflected in short-term price changes:
- Big Ethereum investors, known as “whales,” have been buying more ETH. Wallets holding large amounts of Ether (10,000 to 100,000 ETH) now have over 21 million coins.
- The total number of Ethereum tokens available on exchanges like Coinbase and Binance has dropped by over 4 million this year. This lower supply can mean investors are choosing to hold onto their Ether rather than sell it.
But not all the recent news is positive. On December 25, analyst Amr Taha shared updates showing that about $1.4 billion worth of Ethereum had been sent to major exchanges in just 48 hours. When large amounts of cryptocurrency are moved to exchanges, it often means people are preparing to sell, which could lower the price. Additionally, there were big withdrawals of USDT, a popular stablecoin, from exchanges. This mix of large ETH deposits and USDT withdrawals suggests that investors might be taking defensive actions during this uncertain market period.
Ethereum’s Price Struggles Around $3,000
At the time of writing, Ethereum was trading at just under $3,000. It experienced less than a 1% increase in 24 hours and has stayed mostly flat over the last seven days. However, when you zoom out and look at longer timeframes, the situation appears worse. Over the past two weeks, ETH has dropped almost 9%, and it’s down about 14% compared to its price one year ago.
Currently, trading shows Ethereum stuck in a narrow range between $2,900 and $3,000. This means it’s not showing big swings in price like earlier in the year. Analysts are keeping an eye on the $3,100 level though. This level has been a challenge for Ethereum to break through in the past. If the price stays above $3,100 for a while, it could aim for higher targets. However, if the price falls below current levels, it might drop further.
Why Network Usage Could Influence Future Prices
The big question remains: will Ethereum’s rising network activity eventually drive up its price? According to some experts, the answer might be yes — eventually. Here’s why:
- More activity on the Ethereum blockchain means more fees are being paid in ETH. With the EIP-1559 update, part of these fees is “burned” or permanently removed from circulation. This slowly reduces the total supply of Ether, which could increase its value over time.
- Ethereum is still the top choice for most DeFi projects and stablecoin transactions. This strong position in the market could help it gain in value over the long term, even if short-term prices are unpredictable.
For now, Ethereum, the second-largest cryptocurrency by market capitalization, is in an interesting spot. Its underlying technology and network usage seem stronger than ever, but its price performance is shaped by factors like how much of it is available for trading and broader market conditions. It will be interesting to see how this balance plays out in the coming weeks and months.