Ethereum on-chain activities hit a new high this year! Daily volume surpassed 1.7 million transactions, and the strategic reserve of 10 billion USD helps ETH challenge market dominance.

Ethereum ( ETH ) on-chain activities are quietly accelerating, daily volume has surged to 1.7 million transactions, setting a new high in over a year. The number of active addresses and new addresses is increasing simultaneously, reflecting the real user demand driven by non-short-term speculative trading. More noteworthy is that ETH strategic reserves have skyrocketed from $200 million to $10 billion within 4 months, indicating that whales and institutions are building positions on a large scale. Coupled with the EIP-1559 upgrade continuously burning and deflationary, the strong divergence between fundamentals and on-chain data may signal that ETH is gearing up to take leadership in the crypto market.

The on-chain engine is running at full speed: real demand drives growth

• Volume Breakthrough: Data shows that the daily trading volume of ETH reached 1.7 million transactions, the highest level since 2024, with network usage accelerating.
• User Base Expansion:
  • Active Address Count has significantly increased → existing users' interaction frequency has risen
  • New Address Count continues to grow → New users are steadily pouring in
• Core Meaning: This round of growth is driven by the actual application demands of DeFi, NFT, Layer 2, etc., which is fundamentally different from purely speculative fluctuations. If the trend continues, ETH will enter a new stage of positive resonance between fundamentals and market sentiment.

Deepening Deflationary Mechanism: EIP-1559 Continuous Burning Empowerment

• Burning Effect: The EIP-1559 upgrade continues to play the role of an "invisible engine" by burning transaction fees to permanently remove ETH from circulation.
• Supply Tightening: Analyst Cas Abbe pointed out that despite market volatility, the net issuance of ETH is still close to neutral (new issuance ≈ burning and destruction), and the actual circulation continues to tighten.
• Scarcity Logic: Increasing Demand (on-chain activity) and Supply Contraction (deflationary mechanism) create a dual benefit, providing solid support for the value of ETH.

Hundred Billion Strategic Reserve Exposed: Whale Institutions Bet on ETH Future

• Amazing Increase: Analyst Crypto Patel reveals key data:
  • In April 2025, ETH strategic reserves are approximately 200 million dollars
  • Currently surged to 10 billion dollars → 50 times increase in 4 months
• Signal Interpretation:

1. Strong Accumulation Signal: Reflects that whales/institutions continue to accumulate at relatively low price levels.
2. Long-term Confidence: Demonstrates capital's deep recognition of the future development of the ETH network (such as the Dencun upgrade, L2 expansion, institutional adoption).
3. Forward Planning: Potentially optimize staking yields or pre-position for future catalysts (such as spot ETF approvals).

Battle for Market Leadership: The Breakthrough Opportunity for ETH

Current on-chain data and capital trends point to:

• Basis for Value Revaluation: Network usage intensity and deflation model form the dual engines for value revaluation.
• Institutional Preference Shift: The strategic reserves of billions confirm that ETH is becoming the core target for institutional allocation of crypto assets.
• Leadership Challenge: If on-chain activity and capital inflows continue to surpass Bitcoin (BTC), ETH is expected to compete for the dominance of the crypto market capitalization in the next bull market.

Conclusion: Ethereum is experiencing a "silent bull market" driven by real demand, enhanced deflationary mechanisms, and the aggressive accumulation of institutional capital. The activity level of 1.7 million daily transactions and the exposure of a $10 billion strategic reserve reveal a deep strength that far exceeds price performance. Under the synergy of net deflationary supply and explosive on-chain demand, ETH has established fundamental conditions to challenge the market leadership. Investors need to closely monitor on-chain activity sustainability and institutional holding trends, as these two factors will determine whether ETH can break through the current oscillating pattern and embark on a true value discovery journey.