Ethereum Nears Record 1.9M Daily Transactions

Ethereum Nears 1.9 Million Daily Transactions – Reasons Behind the Surge and Outlook

Ethereum is on a strong upward trajectory in transaction volume, approaching its record of 1.9 million daily transactions set in January 2024. This development is attracting attention from both retail investors and financial institutions, reflecting a combination of technical upgrades, positive market sentiment, and increasing on-chain activity.

Reasons Behind The Growth

Analysts highlight three main drivers:

 - Increased network capacity – Since March 2024, Ethereum Layer 1’s gas limit has been raised by 50%, allowing each block to include more transactions, reducing congestion, and improving processing speed.

 - Strong ETH price rally – A surge above the $4,200 mark has fueled waves of trading, speculation, liquidity provision, and token movements across DeFi platforms.

 - Significantly lower transaction costs – Stablecoin transfer fees have consistently remained below $1, making DeFi, peer-to-peer (P2P) payments, and smaller transactions more attractive.

According to Fidelity Digital Assets, DeFi currently leads in ETH burns, underscoring its central role in driving demand for network usage.

Key Contributing Sectors

 - Stablecoin transactions (USDT, USDC) and swaps on Uniswap consistently rank among the top five gas-consuming activities.

 - Decentralized exchanges (DEXs) and DeFi applications remain the primary engines of Layer 1 transaction demand.

 - Corporate participation is increasing, supported by positive regulatory signals, creating a stable foundation for Ethereum’s ecosystem.

Challenges And Outlook

Despite the rise in transaction volume, some experts warn that lower fees may reduce ETH burns, occasionally turning net supply inflationary. To sustain momentum, Ethereum needs to:

 - Boost mainnet fee-generating activity.

 - Improve value-sharing mechanisms from Layer 2 to Layer 1.

 - Continue rolling out upgrades like PeerDAS and deeper Layer 2 integration to address bottlenecks.

Conclusion

Ethereum is poised to break new transaction records in the coming weeks. With low fees, strong participation from both retail and institutional players, and ongoing network expansion plans, the near-term future could see sustained growth—provided the current momentum continues.