Ethereum Nears 2021 Highs Amid Scaling and Stablecoin Surge

Ethereum Network Activity Nears 2021 Highs Amid Scaling Upgrades and Stablecoin Surge

Ethereum (ETH) Transactions Surge to Near All-Time Highs as Scaling Upgrades and Treasury Frenzy Ignite Market Revival

Ethereum (ETH) is once again capturing market attention as on-chain activity surges, climbing back toward levels not seen since its 2021 peak. The resurgence in network usage is largely attributed to recent scaling upgrades, the rise of stablecoins, the introduction of tokenized stocks, and an ongoing ETH corporate treasury trend — all converging to create a powerful narrative around Ethereum's renewed utility.

Ethereum Transactions Rebound to Over 1.2 Million Daily

According to blockchain analytics, Ethereum is now processing over 1.2 million daily transactions, a figure that rivals its all-time highs set during the bull market of 2021. This dramatic increase reflects revived interest across retail and institutional sectors, following a quieter phase marked by high fees and network congestion.

“Daily transactions on Ethereum is approaching ATH for the first time since 2021. Gas is 5-6 gwei today, compared to >300 gwei back then. Congrats all – we scaled the chain!” — Arjun Bhuptani, Ethereum Developer

The drop in gas fees is a direct result of scaling upgrades like Pectra, a hard fork that implemented various optimizations to enhance Ethereum’s throughput and efficiency. Lower fees have made the chain more attractive for everything from retail DeFi usage to corporate transactions.

Scaling and Efficiency: Ethereum’s New Edge

Ethereum's progress on scaling has been critical in reestablishing its lead in the smart contract ecosystem. The Pectra upgrade, which included improvements to the EVM and Layer-2 interactions, appears to have been a game changer. As a result:

Transaction costs dropped to an average of 5-6 gwei
Network congestion eased, enabling a smoother user experience
Layer-2s like Arbitrum and Optimism saw increased bridging activity

These technical improvements have turned Ethereum into a more scalable and cost-effective environment, allowing it to better support the growing narratives of stablecoins, tokenized assets, and on-chain corporate finance.

Corporate Treasury Movement Boosts Ethereum Sentiment

One of the most notable trends boosting ETH interest is the growing movement among companies to shift treasury assets from Bitcoin to Ethereum. Firms like BitMine Immersion Technologies, traditionally focused on BTC mining, are now turning their attention to ETH due to its growing real-world utility.

Tom Lee, head of research at Fundstrat and now a director at BitMine, underscored this pivot with his bullish view on Ethereum:

“Ethereum usefulness rising = good $ETH”

Lee compared stablecoins to ChatGPT in terms of transformative potential, suggesting they will become the dominant crypto application and will inevitably benefit Ethereum, which remains the leading platform for stablecoin issuance.

Stablecoin Boom Hits Record Levels on Ethereum

Ethereum continues to dominate in the stablecoin sector, with market cap and weekly engagement reaching record highs. This is no surprise, given that major stablecoins like USDC and DAI are natively built on Ethereum.

Stablecoins are essential to DeFi, cross-border payments, and corporate finance, offering price stability, liquidity, and real-world utility. Their growth directly correlates with Ethereum’s value proposition as the backbone of programmable money.

Tokenized Assets Gain Ground on Ethereum

Ethereum’s role in the rise of tokenized stocks is also strengthening its appeal. Platforms like Robinhood and other financial innovators are leveraging Ethereum’s smart contract capabilities to issue on-chain stock derivatives, offering 24/7 global access to equity-like instruments.

Ethereum Activity Hits 2021 Highs Amid Scaling Boom

These developments build on Ethereum’s reputation as a multi-use financial protocol, setting it apart from Bitcoin, which primarily serves as a store of value.

Retail Traders Reignite Bullish Sentiment

The revived on-chain activity is also being reflected in derivatives markets, where retail traders are growing increasingly bullish. According to data from CoinGlass, ETH long positions on Binance rose from 52% to 64% in early July — a 12% increase in bullish conviction.

This uptick followed a previous dip in long positions, which dropped from 74% to 59% in late June, suggesting that traders are now more confident in ETH’s short- to mid-term upside.

rice Update: ETH Faces Resistance at $2.6KDespite the strong fundamentals, Ethereum is still facing resistance at $2,600, after rebounding from $2,300 earlier in the week. At the time of writing, ETH is trading at around $2,520.

This level has emerged as a critical psychological barrier, and a clean breakout could potentially pave the way toward $3,000 and beyond, especially if on-chain growth sustains momentum.

Ethereum ETFs Lag Behind Bitcoin Counterparts

While Ethereum’s on-chain and retail traction has improved dramatically, institutional demand — as measured by ETF inflows — continues to lag behind Bitcoin.

According to Ecoinmetrics, spot ETH ETFs have attracted over $4 billion in cumulative inflows since launch. In contrast, spot BTC ETFs have accumulated over $30 billion, nearly 7x more than Ethereum.

“Every time Bitcoin flows accelerate, Ethereum reacts late and weak. That’s not about access. It’s about narrative: Bitcoin has a clear narrative, Ethereum doesn’t.” — Ecoinmetrics

The data suggests that Ethereum’s lack of a singular narrative — compared to Bitcoin’s positioning as “digital gold” — is holding back broader institutional participation.

Ethereum’s Strength Lies in Its Utility

Despite slower institutional adoption, Ethereum’s resurgence is being driven by real usage:

Surging transaction volumes
Record stablecoin activity
Adoption of tokenized assets
Implementation of scalable infrastructure
Growing corporate treasury interest

These fundamental trends indicate that Ethereum is maturing as a financial layer, not just a speculative asset.

Conclusion: A Quiet Ethereum Bull Run May Be Brewing

Ethereum is undergoing a quiet but powerful revival, driven by technical improvements, real-world adoption, and growing retail conviction. The recent spike in transaction volume and gas efficiency marks a pivotal moment for the network as it enters a new growth phase post-upgrades.

While Bitcoin still leads in institutional capital, Ethereum is laying the groundwork for sustained organic growth by solving long-term scalability and utility challenges. If current trends persist — including rising stablecoin usage and treasury adoption — Ethereum may soon establish a stronger narrative to rival Bitcoin’s dominance.

Investors looking to diversify their crypto exposure should pay close attention to Ethereum’s on-chain signals, as they may be early indicators of a long-term bullish cycle.