Ethereum (ETH) price is currently experiencing a downturn. However, daily transaction counts on the network have surged, surpassing the peaks seen during the 2021 bull cycle. This increase in activity is occurring even as users are paying some of the lowest average fees in recent years.
Data from Etherscan indicates that daily transactions have risen from approximately 1.8 million to 2.1 million over the past two weeks, representing a roughly 14% increase. Concurrently, average transaction fees have dropped significantly, reaching a fraction of their long-term norms. This reduction in fees is partly attributed to network upgrades that have made it more cost-effective for Layer 2 scaling solutions to post data back to the Ethereum mainnet.
Ethereum is presently trading around $3,210 USD, showing a decrease of approximately 3–3.5% over the last 24 hours.
These metrics are significant as they suggest that the current surge in Ethereum usage is driven by broad adoption rather than solely speculative trading. A substantial portion of the network's activity is now attributed to payments, particularly stablecoin transfers, rather than fleeting decentralized finance (DeFi) manias. According to available data, Tether's USDT currently handles approximately double the transfer volume of Circle's USDC on the Ethereum network, highlighting USDT's dominant role in day-to-day on-chain settlement.
Scaling Architecture and Usage Drivers
Ethereum's "modular scaling architecture" is facilitating a notable combination of increased throughput and decreased transaction costs. Dosh, head of business development and growth at the open-source explorer Blockscout, explained that this trend reflects the success of Ethereum's modular scaling approach. Specifically, upgrades like EIP-4844 and its recent blob-capacity enhancement have enabled Layer 2 networks to post more data to the mainnet at a significantly lower cost. These advancements have effectively shifted a substantial portion of the data processing load away from the core chain while maintaining verifiability, thereby enhancing efficiency without compromising security.
Dosh further elaborated that the majority of current network usage originates from stablecoin transfers and payments, with Tether's USDT leading at roughly twice the volume of Circle's USDC. With gas prices remaining low, this type of activity is considered highly durable and aligns with the broader trend of expanding mainstream payment integrations across Ethereum-based infrastructure. This indicates that Ethereum is increasingly serving as the underlying settlement layer for a growing number of payment workflows, moving beyond its initial role as a primary venue for speculative trading.
Staking Behavior and Network Confidence
Beneath the surface, the network's proof-of-stake layer is also signaling confidence, rather than strain. Approximately 30% of all Ether is currently staked, according to data from the Ethereum Validator Queue, which cites information from the Beacon Chain. Notably, the validator exit queue has dropped to zero, meaning there are no stakers currently waiting to withdraw their funds. This represents a significant reversal from a peak in September 2025 when approximately 2.67 million ETH were queued for exit.
Conversely, around 2.6 million ETH are waiting to enter the staking process, marking the highest level observed since July 2023. Dosh commented that the minimal validator exits suggest a healthy balance between operating costs and staking rewards, indicative of stability and confidence in the network. The absence of exits implies that stakers are accumulating rather than withdrawing, thereby keeping capital committed and liquid for future flexibility in environments with higher volatility.
Vitalik Buterin's Caution on Protocol Bloat
This period of stability and growth is accompanied by a cautionary note from Ethereum's co-founder, Vitalik Buterin. In a recent post on X, he expressed concern that the network's long-term health depends on resisting protocol bloat. Buterin articulated his fear that the Ethereum protocol development process might be too eager to incorporate new features to meet highly specific needs, even if these additions contribute to protocol bloat or introduce complex dependencies and cryptography.
Dosh characterized Buterin's intervention as a "governance concern," observing that every mature software system tends to accumulate complexity, and Ethereum is no exception. While acknowledging that this so-called bloat does not currently hinder performance, Dosh emphasized the ongoing necessity for optimization. According to Dosh, the current data demonstrates that Ethereum can scale sustainably, but to preserve long-term resilience and agility, the protocol must also simplify sustainably.