Ethereum on-chain volume reaches 9.2M monthly users, shows breakout moment for DeFi

Ethereum on chain volume has surged to its highest level since 2021, signaling renewed strength in the network as ETH rallies toward the $5,000 milestone.

The spike in activity reflects a flood of capital moving across DeFi protocols, exchanges, and wallets, underscoring Ethereum’s resilience as its base layer processes record transfers without major congestion or gas fee spikes.

Adoption for DeFi and stablecoin usage remains near peak levels with monthly active addresses for ETH expanding to 9.7 million and daily spikes surpassing 830,000 active users.

Ethereum On Chain Volume and Transactions Set 2025 Record

Ethereum on chain volume and monthly transactions soared in August with over 46.9 million transfers recorded as of August 29. This figure surpasses the previous peak from May 2021 which saw 45.06 million transfers. At these transaction levels, Ethereum on chain volume moved more than $14 billion weekly restoring liquidity not seen since the summer of 2021.

On chain volume for Ethereum also reached its highest point for 2025 in the past month. Despite this, ETH faces mixed price pressures. Reports indicate that whales continue to accumulate ETH after a recent dip while entities like Wintermute have also amassed ETH with the potential to sell. Binance executed millions of ETH orders within minutes adding to the surge in Ethereum’s on chain volume.

Recent data shows the market absorbed up to $400 million in ETH over a few hours. However, with most liquidity positioned below current prices, Ethereum on chain volume could see additional downside if large scale whale selling triggers further liquidations potentially erasing some of August’s net gains.

Retail Traders Return as Ethereum On Chain Volume Climbs

The uptick in Ethereum’s on chain volume signals a renewed presence of retail traders on the network. In previous quarters, retail participation had dwindled while whales continued to accumulate ETH. Now, increased Ethereum on chain volume signals a shift in sentiment with users flocking back to the most active decentralized applications.

Gas usage data shows that the Ethereum network is handling a high volume of simple ETH transfers with USDT and USDC among the top three smart contracts by activity. Overall smart contract creation on Ethereum expanded in 2025 recovering to activity levels last seen in 2021. This time, the focus of Ethereum on chain volume is on DeFi rather than NFTs or meme token launches.

Ethereum On Chain Volume Supports ETH Price Stability

As Ethereum on chain volume surged, ETH’s price stabilized around $4,350.16 buoyed by strong inflows. ETH regained ground above 0.040 BTC maintaining momentum even as BTC showed signs of weakness

For August, Ethereum on-chain volume contributed to ETH’s first net monthly gain in three years with the token rising over 17% despite short term volatility. Ongoing whale accumulation combined with ETF interest throughout 2025 continues to support Ethereum on chain volume and price action.

The Ethereum network has evolved with on-chain volume now driven by DeFi rather than NFTs or play to earn games. Importantly, Ethereum has not been overtaken by L2 chains or alternative L1 networks. The main factor holding users back was a lack of liquidity and DeFi opportunities both of which have now returned alongside rising Ethereum on chain volume.