Recently, I noticed that the transaction volume on the Ethereum base layer has reached a new high again, processing 200 million transactions in the first quarter, which is a rare recovery in recent years. However, what's interesting is that despite the hot on-chain activity, the ETH price is still hovering at a low level, currently just over $2,300, far below the nearly $5,000 peak in August last year, a decline of over 50%.



It seems that Layer 2 and stablecoin settlements have driven a lot of transaction volume, but these activities don't seem to have directly boosted fee growth or token burns. Since the Dencun upgrade, the economic effects on the base layer have become less obvious. This round of Ethereum news is actually quite contradictory—on one side, transaction volume is hitting new highs, but on the other side, holder value hasn't kept up much. It’s worth paying attention to how this develops moving forward.
ETH-1.25%
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