Ethereum Active Addresses Surge to 712,000

Ethereum’s network activity is accelerating, signaling stronger market engagement. The number of active addresses has reached 712,000, reflecting a 70% increase from its three-month low of 420,000 in November. This growth extends beyond just user numbers—daily transactions have now climbed to 1.3 million, up from 1 million a year ago.

Ethereum Active Addresses. Source: etherscan.io

The recent surge in Ethereum’s network activity highlights its resilience and growing dominance, particularly as Uniswap continues to lead the DeFi sector. As the top decentralized exchange (DEX), Uniswap now holds 22% of the market share, processing nearly $1 billion in daily trading volume. This strengthens Ethereum’s role as the primary infrastructure for DeFi applications.

Ethereum’s growth is also being propelled by major institutional investments. World Liberty Financial, a project linked to Donald Trump, recently made headlines by purchasing $47 million worth of ETH. But their strategy extends beyond Ethereum—they’ve also begun accumulating ecosystem tokens, including AAVE, LINK, and ENA. These moves signal rising institutional confidence in Ethereum, reinforcing its appeal among large-scale investors.

In response to Ethereum’s increasing adoption, venture capital firm Paradigm has urged the Ethereum Foundation to accelerate network development. This reflects a growing sense of urgency among major investors, who see Ethereum as a key player in the future of decentralized finance but recognize the need for continuous upgrades and scalability improvements.

Ethereum’s network stability remains a key focus, especially as competition among L1s intensifies. While Solana has drawn attention with its meme coin activity, Ethereum continues to demonstrate steady growth and long-term resilience.

Despite an increase in active addresses, highlighting Ethereum’s strong fundamental value, transaction fee revenue has been steadily declining. On January 28, 2025, Ethereum generated just $1.73 million in fees, a significant drop from $15 million in November 2024. This decline suggests rising competition from alternative networks.

Ethereum Daily Revenue. Source: defillama.com

Looking ahead, growing pressure from stakeholders to accelerate network development could have a major impact on Ethereum’s roadmap. As competition among L1s intensifies, Ethereum’s ability to adapt, scale, and innovate will be critical in maintaining its dominant position in the broader crypto ecosystem.