By the end of 2025, the Ethereum network recorded a sharp surge in on-chain activity that stands out compared to previous years. On December 29, 2025, the total number of transfers on the network reached 1.06 million — the highest level since October 2023. At the same time, volatility in this metric was clearly evident in Q4: the network exited a phase of stable consolidation and showed significant revitalization in usage.
Record Activity on the Ethereum Network
On December 29, 2025, the number of transfers on the network hit 1.06 million, marking a local peak compared to autumn 2023. Throughout the fourth quarter, the metric was unstable, alternating between declines and spikes, indicating more dynamic network usage. This behavior reflects a high turnover rate of funds and a change in the nature of network traffic.
ETH Price Dynamics and Their Impact on Activity
Alongside the rise in on-chain activity, the ETH price declined: after yearly highs above $4500, prices dropped to $2900. The text highlights a clear divergence between the price drop and the increase in transaction volume, meaning the asset’s value and its actual on-chain usage are moving in opposite directions. Authors suggest two possible scenarios explaining this divergence.
Ethereum Inflows to Centralized Exchanges
In December, ETH reserves on Binance increased to approximately 4.17 million coins, with total monthly inflows around 8.5 million ETH. On some days, net inflows to the exchange exceeded 162,000 ETH, which may indicate large players entering the market or mass asset transfers. These data should be compared with trading dynamics; for example, the article on Ethereum trading volume examines related changes in the spot market.
Possible Scenarios and Forecasts
The article describes two main scenarios: first, some participants are locking in positions leading to panic selling; second, on-chain activity in DeFi and NFTs is growing due to more accessible operations. It also notes that the combination of factors may signal a shift to a more volatile market phase. Additional analysis on the drivers of demand, including the overview on why Ethereum demand is rising, is useful for understanding these trends.
Why This Matters
For miners with small equipment farms (from one to a thousand devices), the combination of falling prices and rising transaction activity means income and network load volatility. Price drops reduce revenue from selling ETH, while activity spikes can increase competition for block space and affect transaction fees. As a result, both price risk and potential changes in transaction cost structure must be considered.
What to Do?
- Assess your sales cycle: stagger the sale of mined ETH over time to avoid selling everything during a price drop and worsening losses.
- Monitor on-chain metrics: rising transfer counts and exchange inflows can signal volatility spikes, useful for planning sales and hedging.
- Check fees and optimize transactions: during high network activity, consider batching transfers or choosing optimal times for operations.
- Consider exchange liquidity: large inflows to centralized platforms mean more counterparties but also higher price fluctuation risk — plan operations accordingly.