Ethereum User Retention Doubles, Daily Transactions Hit Record 2.8M

Core Insights - Ethereum's user base is showing significant stickiness, with Month-over-Month Activity Retention nearly doubling in the last 30 days, indicating a strong retention of new users [1][2] - The network added approximately 4 million new active addresses this month, bringing the total to 8 million, which is a notable increase compared to previous spikes driven by airdrop farming [1][2] - Daily transactions reached a record 2.8 million, reflecting a 125% year-over-year increase, attributed to the recent Fusaka upgrade that expanded block sizes by roughly 33% [3][7] User Engagement - The sharp spike in the "New" cohort's Month-over-Month Activity Retention suggests a surge in first-time interacting addresses, indicating genuine user engagement rather than speculative activity [2][6] - High retention rates in a low-fee environment imply that these users are likely engaging with stablecoins or DeFi platforms, rather than being part of bot networks that typically show high churn [6] Market Dynamics - Confidence in Ethereum is improving, with indicators suggesting potential price increases driven by capital inflows into ETFs, stablecoins, and crypto protocols [4] - Staking now locks over 50% of Ether's total supply, which may contribute to the positive sentiment around the asset [4] - There is a noted disconnect between strong on-chain metrics and price action, reflecting skepticism about Ethereum's value accrual model amid macroeconomic challenges [4] Institutional Perspective - For desk traders, the count of "New Addresses" is often viewed as a vanity metric, but the doubling of retention is considered a more significant indicator of user engagement [5]