Ethereum’s 2021 Echo: A Tale of Transactions and Trepidation 🌟

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  • ETH network traction echoes 2021 levels, a nostalgic hum in the blockchain air. 
  • Tom Lee, the sage of the crypto realm, deems this growth as ETH’s ‘usefulness’. 

Ethereum [ETH] has witnessed a revival in network activity, a whisper of the past that stirs the market’s heart.

On-chain data now reveals that daily transactions on the chain have soared over 1.2 million, a number that dances near the 2021 highs. 

The surge in network activity aligns with the ongoing ETH treasury frenzy, the stablecoin saga, and the tokenized stocks narrative.

But the real magic, the true alchemy, lies in the recent scaling upgrades like Pectra. 

Is This a Boon for ETH Price?

Ethereum developer Arjun Bhuptani, a modern-day alchemist, links the uptick in network traction to these recent scaling upgrades. He points to the current low-cost gas fees, a mere 5-6 gwei today, compared to the towering 300 gwei of yesteryears. 

“Daily transactions on Ethereum are approaching all-time highs for the first time since 2021. Gas is 5-6 gwei today, compared to >300 gwei back then. Congrats all – we scaled the chain!” 

Fundstrat’s Tom Lee, the bard of the crypto world, views the network traction as a net positive for ETH’s value. He proclaims, 

“Ethereum usefulness rising = good $ETH”

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Meanwhile, ETH faced a minor setback at $2.6K after a spirited leap from $2.3K earlier in the week. The altcoin was valued at $2.52K at the time of writing. 

Yet, despite the raging ETH treasury, the ETF demand has lagged behind spot BTC ETFs, a fact noted by analytics firm Ecoinmetrics. 

Since its debut, spot ETH ETFs have attracted over $4 billion in cumulative inflows. However, their BTC counterparts have raked in over $30 billion, nearly 7x more than ETH. 

Ecoinmetrics suggests that the divergence is due to a lack of a clear narrative for ETH. 

“Every time Bitcoin flows accelerate, Ethereum reacts late and weak. That’s not about access. It’s about narrative: Bitcoin has a clear narrative, Ethereum doesn’t.” 

ETH’s renewed market interest is evident on-chain as traders FOMO in. However, institutional demand still lags behind BTC, a tale of two cryptos in a world of endless possibilities. 🌌

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2025-07-05 13:21