The Ethereum network is reaffirming itself with users actively interacting, according to new on-chain data

Recent on-chain analyses reveal a transformative outlook for Ethereum, with millions of new addresses interacting with the network in a sustained manner. The data suggest that current growth is not simply recycled volume, but genuine onboarding of fresh participants exploring the ecosystem’s capabilities.

Millions of new users interacting with Ethereum in January

Analysis firm Glassnode reported a remarkable phenomenon: the retention of monthly activity on Ethereum nearly doubled, rising from just over 4 million to nearly 8 million addresses continuously interacting. This jump reflects one of the most robust onboarding periods in the network’s history.

According to the data, new wallets are driving the dynamics, rather than activity solely from established participants. The retention metric is particularly significant because it distinguishes between organic growth and occasional speculative activity, indicating a user base with higher engagement.

Daily transactions break historical records

Network activity has manifested in extraordinary numbers. In mid-January, Ethereum processed 2.8 million transactions in a single day, reaching an all-time high. This represents a 125% increase compared to the previous year, demonstrating accelerated usage.

Active addresses have more than doubled in the same period, reaching over 1 million compared to approximately 410,000 twelve months ago. With over 462 million addresses holding ETH, the ecosystem’s user base demonstrates unprecedented territorial expansion.

Stablecoins and L2 technology drive sustainable growth

Market analysts attribute much of this dynamism to two converging factors: the accelerated expansion of stablecoin activity and transaction cost reductions via Layer 2 networks. As Ethereum shifts execution to L2, it maintains secure settlement on the base layer, creating a scalable structure.

According to macroeconomic experts, this model represents the financial infrastructure of the future: the ability to process massive volumes without compromising decentralization. Gas fees have been significantly reduced thanks to this layered approach, allowing more users to access applications without friction.

On-chain fundamentals support institutional optimism

Fundamental indicators are generating a shift in sentiment among institutional participants. Arctic Digital experts note that previously oversold indicators are recovering, supported by spot ETF inflows and renewed interest from sophisticated investors.

Ethereum staking has risen to around 36 million ETH, effectively adjusting circulating supply as usage accelerates. This creates a dual scenario where utility demand increases while supply contracts, a historically favorable combination for long-term price performance. Analysts highlight that these solid on-chain fundamentals position the asset for a potential bullish move as liquidity reorganizes.

ETH consolidates after network dynamism

Ethereum recently hit a two-month high near $3,400 before consolidating. Currently, the price has adjusted to $2.54K as markets digest the magnitude of activity growth.

Traders and analysts suggest that the combination of increasing usage, sustained institutional inflows, and improved fundamentals could catalyze a decisive move in the short term. Ethereum’s story is no longer merely about technical scaling; it increasingly revolves around user retention, authentic financial transactions, and new addresses remaining engaged with the ecosystem—patterns that historically anticipate more robust price performance.