Ethereum is back in full throttle mode, and the on-chain numbers are starting to speak loudly.

Over the past four days, the Ethereum network has consistently posted daily transaction counts near record levels, culminating in roughly 2.88 million transactions processed in the latest 24-hour period. This marks one of the most active short-term streaks Ethereum has recorded since its transition to proof-of-stake, signaling renewed demand at the base-layer level.

At the same time, Ethereum’s fee burn rate has sharply increased, adding fresh fuel to the long-running supply tightening narrative around ETH.

Four-Day Transaction Streak Signals Real Network Demand

Ethereum averaging close to 2.7-2.9 million daily transactions over multiple consecutive days is statistically significant. For context, Ethereum’s long-term daily average throughout most of 2023 and early 2024 hovered closer to 1.9-2.2 million transactions per day.

That puts the current streak roughly 30-40% above historical norms, suggesting the surge is not a one-off anomaly but a sustained wave of activity.

This rise reflects:

Increased stablecoin transfers
Higher DeFi protocol interaction
More frequent smart contract executions
Elevated automated trading and arbitrage flows

Notably, this growth is happening without extreme gas fee spikes, indicating improved execution efficiency even under heavier load.

Ethereum Burn Rate Jumps as Fees Rise

As network activity increases, so does Ethereum’s base fee burn under the EIP-1559 mechanism. Over the past seven days, Ethereum has burned an estimated 250,000–270,000 ETH, translating to roughly $750 million to $800 million at current market prices.

To put that into perspective:

Average daily ETH burned this week: 35,000-40,000 ETH
Long-term daily average burn: 15,000-20,000 ETH
Weekly burn increase vs. average: ~80% higher

This burn acceleration materially impacts Ethereum’s net issuance, especially when validator issuance remains relatively stable.

Net ETH Supply Tightens as Burn Offsets Issuance

Under proof-of-stake, Ethereum issues approximately 600,000-650,000 ETH annually, or about 11,500-12,500 ETH per week.

With weekly burns exceeding 250,000 ETH, Ethereum is currently operating in a strongly deflationary window, where burned ETH vastly outweighs new issuance. In net terms, this results in:

Net weekly ETH supply reduction: ~235,000 ETH
Estimated annualized supply contraction rate (if sustained): 1.8-2.2%

While burn rates fluctuate, sustained transaction demand significantly improves Ethereum’s long-term scarcity profile.

Stablecoins and DeFi Are Driving the Numbers

On-chain analytics show that stablecoin transfers account for over 35% of total Ethereum transactions during this surge. USDT, USDC, and decentralized stablecoins are being actively used for:

Liquidity repositioning
DeFi collateral movement
Cross-protocol settlement

Meanwhile, DeFi-related transactions represent roughly 25–30% of network activity, driven by decentralized exchanges, lending platforms, and restaking-related protocols.

Importantly, this usage is revenue-generating for the network, directly feeding into higher fee burns rather than low-value spam.

Gas Fees Stay Moderate Despite Heavy Usage

One of the most bullish data points is gas efficiency. Despite near-record transaction counts:

Average gas fees remain 20-30% lower than peak 2021 levels
Block utilization stays consistently above 90%
Failed transaction rates remain low

This suggests Ethereum is handling higher demand without degrading user experience critical for institutional and long-term adoption.