Ethereum network activity is reaching an all-time high while the price is lagging far behind

Much of the recent increase in activity comes from Layer-2 networks settling transactions on Ethereum.

Ethereum (ETH) recorded its highest level of on-chain usage on December 24, 2025, even as its price hovered around $3,000 and struggled to regain recent highs.

The gap between record network demand and muted price action has sharpened the debate over whether Ethereum’s fundamentals are quietly strengthening while short-term market conditions keep prices capped.

Record transactions highlight the growing use of Ethereum

Data shared by CryptoOnchain showed Ethereum’s seven-day average number of transactions to climb to a new peak of approximately 1.73 million, the highest level in the network’s history. At the same time, ETH was trading around $2,950, well below the 2021 and 2025 highs, highlighting a clear gap between usage and valuation.

The analyst attributed the jump in activity to a combination of Layer-2 networks handling transactions on Ethereum, rising DeFi activity and steady stablecoin transfers. Unlike previous cycles, this growth has occurred without sharp rate spikes, indicating that the network is handling heavier demand more efficiently.

Broader chain data from the end of December supports this view. As CryptoPotato previously reported, large ETH holders have continued to expand positions, with wallets between 10,000 and 100,000 ETH increasing their combined balances to over 21 million coins. At the same time, foreign exchange reserves have fallen by more than 4 million ETH over the past year, indicating a reduced supply of liquid assets.

Not all short-term signals are supportive, however, with market updates shared by analyst Amr Taha on December 25 showing around $1.4 billion worth of ETH. flows in major exchanges such as Kraken and Binance for a period of 48 hours. These deposits followed large withdrawals of USDT from centralized platforms, a mix that often occurs during periods of selling or defensive positioning.

The price remains stuck near $3,000 as liquidity pressure increases

Meanwhile, ETH was trading on the market at just under $3,000 at the time of writing, up less than 1% in the last 24 hours and fairly flat over the last seven days. The price change is more pronounced over longer time frames, with a decline of almost 9% over two weeks and around 14% in the past year.

You might also like:

Trading data shows ETH trading within a tight range between $2,900 and $3,000, with volatility lower than earlier in the quarter. However, analysts are still eyeing the $3,100 area, a level that has limited progress several times in recent years. According to them, a sustained move above that zone could reopen higher targets, while failure to hold current support will keep downside risks in view.

Despite the short-term pressure, Ethereum’s increasing transaction burden has longer-term consequences. More network usage means higher ETH burn through EIP-1559, gradually reducing supply growth. And with Ethereum still hosting the majority of DeFi value and stablecoin issuance, the discrepancy between network demand and price has become harder for investors to ignore.

For now, the world’s second-largest cryptocurrency by market capitalization sits at an uneasy equilibrium point: strong fundamentals lie beneath the surface, but liquidity conditions and currency flows still determine its price direction in the coming weeks.