The Ethereum blockchain is currently setting all-time records for transactions and the number of active addresses, alongside a significant drop in fees. This is a favorable situation, as the Fusaka update is scheduled for early December.
Ethereum: Rising Activity and Rock-Bottom Fees
Since its launch in 2015, the Ethereum blockchain has established itself as the “Lego of Money”—a platform on which anything can be built and tested in real time. It has maintained this position despite fierce competition in the sector, particularly during a time when its exorbitant fees spurred the creation of a host of “Ethereum killers” determined to take market share away from it.
Despite everything, the second-most valuable project in the crypto ecosystem continues to attract the attention of developers and investors, particularly since stablecoins—more than 60% of whose available supply is built on its blockchain—have become the new trendy monetary trend in traditional finance.
At the same time, decentralized finance (DeFi) is emerging as the new leader in on-chain revenue, accounting for an estimated 63% of the new all-time high of $9.7 billion recorded in the sector during the first half of this year. It is a sector where Ethereum still captures over 56% of the total value locked (TVL).
This favorable environment is also seeing growing adoption. Indeed, the number of active addresses on the Ethereum blockchain is currently hitting record highs, while transactions are simultaneously surpassing the historic levels of 2021. And for good reason: fees are currently at an all-time low.
Rise in transactions on the Ethereum blockchain
Ether (ETH) Still Far from Ultra Sound Money
Some might argue that Ethereum’s strength isn’t necessarily reflected in the price of ETH, which barely managed to hit an all-time high last August—less than 3% below its previous ATH from 2021—while Bitcoin posted an increase of over 80% under the same circumstances.
It must be said that the promise of a deflationary Ether since The Merge—the transition to Proof of Stake in September 2022—currently clashes with the reality of the figures published on the Ultra Sound Money website. In fact, its available supply has increased by more than 650,000 ETH since that symbolic date, despite the reported annual burn of 640,000 units.
Evolution of ETH supply since The Merge
Ethereum’s roadmap is now heading toward the Fusaka upgrade, recently scheduled for early December. This new phase aims primarily to improve the scalability of its blockchain, notably by increasing the capacity of its blobs and optimizing data storage and validation management.
