Thus, over the past week, the daily transaction volume increased from 1.1 mln to 1.3 mln – up to the levels of November 2021, when the asset was trading near an all-time high above $4,6k. What do these numbers mean? Why is the volume of transactions large, while the Ether price has not yet reached its previous high?
The increase in transactions on the Ethereum network in 2024 to the levels of November 2021 could be due primarily to the active use of DeFi and various decentralized Ethereum-based apps.
Ethereum transaction volume is the total amount of transferred funds in ether over a certain period of time via the network. It reflects user activity and the network’s demand for transfers. After the launch of ETH 2.0, the network has become more scalable and cost-effective. This attracts new users from finance, logistics, the Internet of Things (IoT) and other areas.
However, higher transaction volumes do not necessarily translate into a higher ETH price, since the price is determined primarily by the relationship between supply and demand on exchanges. If the transaction volume exceeds the previous high, this will not affect the price. The market price is driven by supply and demand. However, the rising popularity of the ecosystem will exert a positive impact on the long-term demand for ETH from investors.