A large share of the recent activity increase is coming from Layer-2 networks settling transactions back on Ethereum.
Ethereum (ETH) recorded its highest level of on-chain usage on December 24, 2025, even as its price hovered near $3,000 and struggled to regain recent highs.
The split between record network demand and muted price action has sharpened debate around whether Ethereum’s fundamentals are strengthening quietly while short-term market conditions keep prices restrained.
Data shared by CryptoOnchain showed Ethereum’s seven-day average transaction count climbing to a new peak of about 1.73 million, the highest level in the network’s history. At the same time, ETH was trading around $2,950, well below its 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 settling transactions on Ethereum, rising DeFi activity, and steady stablecoin transfers. Unlike previous cycles, this growth has occurred without sharp fee spikes, suggesting the network is handling heavier demand more efficiently.
Broader on-chain data from late December supports that view. As CryptoPotato reported previously, large ETH holders have continued adding to positions, with wallets holding between 10,000 and 100,000 ETH increasing their combined balances to over 21 million coins. At the same time, exchange reserves have fallen by more than 4 million ETH over the past year, pointing to reduced liquid supply.
However, not all short-term signals are supportive, with market updates shared by analyst Amr Taha on December 25 showing around $1.4 billion worth of ETH flowing into major exchanges such as Kraken and Binance over a 48-hour period. These deposits followed heavy USDT withdrawals from centralized platforms, a mix that often appears during periods of selling or defensive positioning.
Meanwhile, at the market, ETH was trading at just under $3,000 at the time of this writing, up less than 1% in the last 24 hours and rather flat over the past seven days. The change in price is more pronounced across longer timeframes, with the token down nearly 9% over two weeks and about 14% in the past year.
Trading data shows ETH moving within a tight range between $2,900 and $3,000, with volatility lower than earlier in the quarter. However, analysts are still watching the $3,100 area, a level that has capped advances 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 focus.
Despite the near-term pressure, Ethereum’s rising transaction load carries longer-term implications. More network usage means higher ETH burn through EIP-1559, gradually reducing supply growth. And with Ethereum still hosting most DeFi value and stablecoin issuance, the mismatch between network demand and price has become harder for investors to ignore.
For now, the world’s second-largest cryptocurrency by market cap sits at an uneasy balance point: strong fundamentals below the surface, but liquidity conditions and exchange flows still shaping price direction in the weeks ahead.
