Ethereum On-Chain Activity Nears Record Highs as New Buyer Demand Surges

Ethereum’s on-chain transactions are approaching all-time highs from May 2021, fueled by new buyers, strong long-term holder confidence, and large transfer volumes signaling institutional involvement.Key TakeawaysEthereum’s on-chain activity is surging, with transactions nearing historic highs set in May 2021.New ETH buyers are accelerating purchases since July 20, driving fresh demand.Long-term holders are adding to positions during sideways price action, showing strong conviction.700,000 ETH are queued for unstaking, but analysts say demand is likely to absorb the supply.New Buyers Drive Ethereum On-Chain MomentumOn-chain data analyst Murphy reported a sharp increase in new ETH buyers since July 20, signaling fresh demand for Ethereum as the market consolidates.At the same time, long-term holders are accumulating ETH, choosing to buy rather than sell despite sideways price movement. This behavior reflects high confidence in Ethereum’s long-term value and fewer profitable sellers exiting positions.Ethereum Transactions Near 2021 PeakEthereum’s on-chain activity is now approaching levels not seen since May 2021:Transaction count is close to the all-time high.Transfer volumes are climbing rapidly, even exceeding December 2024 levels — when ETH was trading closer to $4,000.This spike in transaction value suggests large funds and institutional investors are increasingly active on Ethereum’s network.Staked ETH Unlocks Pose No Immediate ThreatMurphy noted that around 700,000 ETH are queued for unstaking, but the market’s strong demand should be able to absorb the supply.“As long as new buyer demand continues, the chip-switching process — moving ETH from weak to strong hands — will accelerate,” Murphy said.