Ethereum Transaction Volume Skyrockets to 22-Month Peak, Defying Futures Market Dip

Ethereum's monthly transaction volume has reached a 22-month high of $130 billion, reflecting increased demand for the Proof-of-Stake network. However, the futures market for ETH has seen a decline in trading volume by almost 10% since March 15th, indicating decreased interest from futures traders.

Ethereum Transaction Volume Soars to 22-Month High, Defying Futures Market Decline

Ethereum's on-chain transaction volume has surged to its highest level in 22 months, reaching $130 billion in March to date, a 14% increase from February's $114 billion and a 21% growth year-to-date. This surge is attributed to the increased demand for Ethereum's Proof-of-Stake (PoS) network, as evidenced by the recent surge in daily new addresses created on the network to over 116,000, a year-to-date high.

The elevated user activity has resulted in a high ETH burn rate, pushing the coin's circulating supply to a new post-merge low of 120.07 million ETH. Approximately 89,036 ETH coins, valued at $314 million, have been removed from circulation in the past month alone.

Following the implementation of Ethereum's Dencun Upgrade, which reduced average transaction fees, there has been a surge in the number of unique addresses participating in ETH transactions. As of March 20th, the daily new addresses count reached an 18-month high of 123,000, reflecting a 16% increase in new demand for the PoS network month-to-date.

In contrast to the robust on-chain activity, Ethereum's futures market has experienced a decline in trading volume, dropping by almost 10% since March 15th. This decrease in futures trading volume typically indicates a shift in sentiment or a desire to lock in profits or minimize losses among futures traders.

The decline in ETH's trading volume has also led to a reduction in open interest, which currently stands at $13.08 billion, an 8% decline over the past seven days. This suggests that market participants are becoming more hesitant and are awaiting clearer market signals before re-entering the futures market.

Overall, Ethereum's on-chain transaction volume is demonstrating resilience, reflecting increased adoption and demand for its PoS network. However, the decline in futures market activity highlights the ongoing market uncertainty and cautious sentiment among traders.