Ethereum’s Scalability Breakthrough: Network Activity Soars as Architecture Evolves

The ethereum network is currently experiencing a historic surge in on-chain activity, processing triple the transaction volume of its 2021 bull market peak, according to recent data. This remarkable growth is occurring even as ETH's price consolidates below a key technical resistance level, suggesting a fundamental decoupling between network utility and short-term price action. The most striking development is the architectural transformation underway: Layer 2 scaling solutions now handle a staggering 98.5% of all network traffic. This seismic shift in Ethereum's infrastructure has enabled the network to achieve a record throughput of approximately 1,800 transactions per second (TPS), a monumental leap from just 230 TPS observed days prior. This represents nearly an 8x increase in capacity in a very short timeframe. Analyst Leon Waidmann emphasizes that the nature of this activity surge is fundamentally different from the speculation-driven frenzy of 2021. The current transaction volume is underpinned by real-world usage, including decentralized finance (DeFi) applications, non-fungible token (NFT) ecosystems, and enterprise-grade blockchain solutions. The proliferation of Layer 2 networks like Arbitrum, Optimism, and zkSync has successfully addressed Ethereum's long-standing scalability trilemma, maintaining decentralization and security while drastically reducing fees and increasing speed. Despite the record throughput, average transaction fees have remained low and stable, a critical achievement for user adoption and developer experience. This technical milestone signals Ethereum's successful transition from a monolithic blockchain to a modular, layered ecosystem. The high throughput and low fees are expected to catalyze the next wave of institutional and retail adoption, moving beyond pure speculation to tangible utility. For investors and practitioners, this represents a powerful bullish signal for the long-term valuation of the Ethereum ecosystem. The network's ability to scale efficiently while maintaining its robust security model strengthens its position as the foundational settlement layer for Web3. As of January 2026, while price may exhibit short-term consolidation, these on-chain metrics paint a picture of a network undergoing profound and sustainable growth, setting a strong foundation for future price appreciation as utility continues to expand.

Ethereum Network Activity Surges While Price Consolidates Below Key Level

Ethereum's network is processing triple the transaction volume of its 2021 peak, with LAYER 2 solutions now handling 98.5% of traffic. This architectural shift maintains low fees despite record throughput of 1,800 transactions per second - a seismic improvement from 230 TPS just days prior.

The activity represents fundamentally different market dynamics than the 2021 speculation frenzy, notes analyst Leon Waidmann. Current transaction growth reflects substantive economic activity rather than speculative trading, with Ethereum maintaining its cost advantage over competing chains.

ETH price action tells a contrasting story, struggling below the $3,110 20-day moving average at $2,906. Bollinger Band expansion signals heightened volatility, with the market testing support NEAR $2,790. While intermittent rallies occur, persistent selling pressure continues to cap upward momentum.

Hang Seng Launches Physical Gold ETF With Tokenized Share Class

Hang Seng Investment Management is introducing a groundbreaking physical gold ETF on the Hong Kong Stock Exchange, featuring both traditional shares and blockchain-based tokenized units. The dual-structure approach marks a significant innovation in asset management, blending conventional finance with blockchain technology.

The Hang Seng Gold ETF, trading under ticker 3170.HK, will track the LBMA Morning Gold Price and hold physical gold bars stored in Hong Kong vaults. HSBC acts as custodian, with additional security provided by Hong Kong International Airport Precious Metals Storage Limited and Brink's Hong Kong Limited. The fund charges a 0.25% annual management fee, with a total recurring expenditure ratio of 0.4%.

Tokenized shares will reside on the Ethereum blockchain initially, with HSBC Bank serving as tokenization agent. While secondary market trading won't be available for these units, the MOVE signals growing institutional adoption of blockchain infrastructure. The fund leaves open the possibility of expanding to other secure public blockchains in the future.

BitMine Projects $164M Annual Revenue from Ethereum Staking Strategy

BitMine Immersion Technologies is transforming Ethereum staking from a niche experiment into a Core institutional strategy. The firm now holds 4.24 million ETH—including 2.01 million staked—representing over 3.5% of circulating supply. This positions BitMine to generate an estimated $374 million annually, according to company projections.

The launch of MAVAN, BitMine's proprietary validator network, signals a shift toward infrastructure independence. "Staking has evolved from speculative play to balance sheet cornerstone," notes President Tom Lee. With 2.9 million ETH remaining unstaked, the company retains dry powder for strategic deployment.

Ethereum Transactions Surge to Record Highs Amid Lower Fees

Ethereum's network activity has reached unprecedented levels, with daily transactions eclipsing previous peaks from the 2021 bull market. Unlike past cycles dominated by speculative trading, current usage reflects broad-based adoption across decentralized finance, NFT platforms, stablecoins, and blockchain gaming.

The network now processes triple the volume at one-third the cost compared to 2021 highs, signaling fundamental improvements in scalability. Layer 2 solutions and protocol upgrades have transformed Ethereum's economic model, enabling real-world utility at scale without the fee volatility of previous eras.

This sustained demand—divorced from market speculation—demonstrates Ethereum's maturation as infrastructure for decentralized applications. The data suggests a paradigm shift where transaction growth correlates with productive economic activity rather than token price movements.

Ethereum Price Forecast: Institutional Demand and Macro Signals Point to Aggressive 2026 Rally

Ether trades at $2,920, marking a 0.38% daily gain as institutional accumulation intensifies. Corporate treasuries like BitMine are deploying capital at levels unseen since mid-2025, with Monday's $58 million purchase of 20,000 ETH signaling structural demand shifts.

On-chain metrics reveal heightened activity near ETH's realized price of $2,720, while the $352 billion market cap demonstrates stability. Analysts observe liquidity patterns mirroring 2021's pre-rally conditions, when Ethereum surged 226%.

Forecasts suggest $3,240 by February 2026, though cycle projections extend to $20,000. "Davos discussions confirm institutional interest in Ethereum's infrastructure," noted BitMine's Tom Lee, whose firm now holds 4 million ETH.