Ethereum transaction volume hits 5-year high: Multidimensional recovery signals behind 1.87 million transactions

Ethereum’s trading volume on the last day of 2025 reached 1.87 million transactions, breaking the historical record since May 2021. Not only did trading volume hit a new high, but active addresses and new user additions also reached new peaks simultaneously. These data collectively point to a signal: the Ethereum network is experiencing a comprehensive recovery.

Multi-dimensional Data Reaching New Highs

December 31st saw the Ethereum network’s performance described as a “full-scale explosion.” It’s not just the trading volume indicator that hit a new high.

It is uncommon for these three dimensions to reach new highs simultaneously. Trading volume reflects market activity, active addresses indicate user engagement, and new addresses show the influx rate of new users. The simultaneous surge in all three suggests not just short-term fluctuations but an improvement in the network’s fundamentals.

Multiple Evidence of Market Bottom Reversal

According to the latest news, this increase in activity is supported by clear market fundamentals.

Institutional Funds Continually Flow In

On December 31st, spot Bitcoin ETFs recorded a net inflow of $355 million, ending seven consecutive days of outflows. The spot Ethereum ETF also reversed its previous four-day loss trend, with a net inflow of $67.84 million. Although related reports show that on December 31st, the total net outflow of Ethereum spot ETFs was $72.05 million, this may reflect end-of-year rebalancing or profit-taking, and does not change the overall positive outlook of institutional investors.

Market Sentiment Turns Optimistic

According to relevant information, Chris Perkins, Managing Partner of CoinFund, stated that as the regulatory environment becomes clearer, institutions are becoming the core driving force behind crypto adoption. Ethereum’s dominant role in clearing and settlement is strengthening, providing fundamental support for increased network activity.

Actions of High-Net-Worth Investors

According to the latest news, Tom Lee, Chairman of BitMine, purchased 32,938 ETH for $97.6 million on December 31st, and staked 118,944 ETH worth $352.16 million. Such large-scale continuous buying and staking behavior usually indicates market participants’ confidence in the future.

Lessons from Historical Comparison

From the last historical high in May 2021 to now, Ethereum has undergone more than four years of evolution. The significance of this new high lies in:

• Increased Network Maturity: Five years ago, Ethereum was still in the early stages of the DeFi boom. Now, it has formed a complete ecosystem including Layer 2 solutions, staking economy, derivatives, and more.
• Expansion of User Base: The increase in new addresses is the largest since early 2018, indicating that the influx of new users is faster than at any previous time.
• Rich Application Scenarios: It is no longer just speculative trading; new applications such as on-chain Wall Street and AI agent economies are driving real transaction demand.

What to Watch Next

Whether this surge in activity can be sustained depends on several key factors. First, the clarity of regulatory policies; second, the willingness of institutional funds to continue flowing in; third, whether application layer innovations can keep pace. According to relevant information, Ethereum has made new progress in L2 interoperability, privacy computing, and on-chain finance, which could serve as support points for future activity.

Summary

Ethereum’s record-high trading volume on the last day of 2025 is not an isolated fluctuation but the result of simultaneous improvements in multiple dimensions such as active addresses and new users. Behind this are continuous institutional fund inflows, improved regulatory environments, and a shift toward optimistic market sentiment. This indicates that the Ethereum network is undergoing a bottoming-out and entering a new cycle. The key going forward is whether this activity can be maintained into 2026, which will depend on policy support, institutional demand, and application innovation working together.