Since the victory of Donald Trump in the U.S. elections, Ethereum has seen a remarkable increase in transaction revenue. This surge has led to higher staking rewards and a higher rate of ether (ETH) being burned through transaction fees, strengthening the Ethereum network’s tokenomics.
Surge in Ethereum’s Transaction Activity
Steno Research’s recent analysis highlights the significant growth in Ethereum’s transaction revenue. This uptick has resulted in more ether being burned through transaction fees, contributing to a deflationary effect that benefits the ETH supply. Additionally, the increased staking rewards are enhancing Ethereum’s appeal as an asset, drawing more interest from both retail and institutional investors.
USDT Shifts to Ethereum, Overtaking Tron
An important milestone in the recent surge was the shift in stablecoin usage. For the first time in more than two years, the amount of USDT (Tether) on the Ethereum blockchain surpassed that on the Tron network. This shift signals an increase in Ethereum’s on-chain activity, reflecting higher transaction demand and a more active user base.
Ethereum Layer-2 Networks Show Promising Growth
Ethereum’s layer-2 networks, or rollups, are also playing a crucial role in this growth. These secondary networks help scale Ethereum by processing transactions off the main chain, reducing congestion and lowering transaction costs. While the daily fees generated by rollups are currently modest, Steno Research predicts that they could grow to around $1 million, providing a significant boost to the Ethereum network’s overall economy.
Ethereum ETFs Gaining Traction
Further contributing to Ethereum’s bullish outlook, Ether-based exchange-traded funds (ETFs) in the U.S. have seen their largest-ever single-day net inflow, surpassing Bitcoin ETFs for the first time. This shift in institutional investment underscores growing confidence in Ethereum’s long-term potential and its increasing role in the broader cryptocurrency market.
As Ethereum continues to expand its user base, improve its scalability, and attract institutional interest, the network is solidifying its position as a key player in the evolving world of decentralized finance (DeFi) and blockchain technology.
