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 development, as the Fusaka update is scheduled for early December.
Ethereum: Rising Activity and Record-Low Fees
Since its launch in 2015, the Ethereum blockchain has established itself as the “Money Lego” 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 this, the second-most-valued 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 hosted on its blockchain—have become the latest 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. This is a sector where Ethereum still captures more than 56% of the total value locked (TVL).
This favorable environment is also seeing growing adoption. In fact, the number of active addresses on the Ethereum blockchain is currently hitting record highs, while transactions are simultaneously surpassing the historic levels seen in 2021. And for good reason: transaction fees are currently at an all-time low.
Rise in transactions on the Ethereum blockchain
Ether (ETH) Still Far from Being “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% shy of its previous ATH from 2021—while Bitcoin posted a gain of over 80% under the same circumstances.
It must be said that the promise of a deflationary Ether following “The Merge”—the transition to Proof of Stake that took place in September 2022—is currently at odds with the reality of the figures published on the Ultra Sound Money website. In fact, its circulating supply has increased by more than 650,000 ETH since that symbolic date, despite the reported annual burn of 640,000 units.
Evolution of the 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.
