While Ethereum’s price action has been relatively subdued, breaking the $3,300 level for the first time this year on Wednesday, a surge of fundamental growth is unfolding beneath the surface. Key on-chain metrics are exploding, indicating robust network adoption and a potential shift in capital flows within the crypto market.
Unprecedented User Adoption and On-Chain Activity
The underlying strength of the Ethereum ecosystem is becoming increasingly evident through its user metrics. On January 11, the network saw a single-day record of 393,600 new wallets created. Furthermore, weekly active users climbed to a peak of 889,300. Transaction volume has risen by 31 percent since mid-December.
Analytics firm Santiment suggests this growth is not driven by mere speculation. Instead, it points to tangible factors like reduced transaction fees following the Fusaka upgrade, unprecedented stablecoin transfer volumes, and genuine user onboarding across decentralized applications (dApps), payment systems, and decentralized finance (DeFi).
Key Network Metrics:
* New wallet creation averaged 327,000 per day over the last week.
* Since the start of the year, 2.05 million transactions represent a 6.8% increase.
* The total value locked (TVL) in DeFi protocols exceeds $99 billion.
* Stablecoin transfers in Q4 2025 amounted to over $8 trillion.
The Fusaka Upgrade and Shifting Market Dynamics
Implemented in December 2025, the Fusaka upgrade has been a significant catalyst, substantially lowering costs for Layer-2 scaling networks. This has solidified Ethereum’s leading role in the stablecoin and tokenized real-world asset sectors, which now represent over $12 billion in value. Institutional confidence is growing, with Standard Chartered expressing optimism based on Ethereum’s dominance in these areas and the prospect of clearer U.S. regulations.
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Market data also hints at a rotation of capital. The ETH/BTC ratio has gained 3.59 percent since the beginning of the year. Concurrently, Bitcoin’s market dominance, which stood at 66% in July 2025, is declining—a historical pattern that has often preceded rallies in alternative cryptocurrencies.
Technical Outlook and Derivatives Market Sentiment
From a technical perspective, Ethereum is currently consolidating around $3,290, having established the $3,300 zone as a new support level. The next significant resistance awaits near $3,450. Joel Kruger, a strategist at LMAX Group, notes that a decisive break above $3,500 would serve as “a key confirmation signal for a renewed upward push.”
The derivatives market shows heightened interest, with Open Interest on Binance reaching $8.6 billion, its highest level since October 2025. However, persistently low funding rates indicate that the current price movement is being fueled primarily by spot market buying rather than excessive speculative leverage.
The apparent disconnect between modest price appreciation and accelerating network fundamentals may resolve if Ethereum can sustain a move above the $3,450 threshold. A successful breach could then bring the psychologically significant $4,000 level into view.
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