I just saw something quite interesting in Ethereum data lately. The network is experiencing a user growth that is frankly hard to ignore.

According to Glassnode, the number of new addresses on Ethereum has nearly doubled in the past month, going from just over 4 million to around 8 million. But what really stands out here is that we’re not talking about bots or short-term activity. Retention of activity has almost doubled, meaning these new users are staying and continuing to use the network. That’s different from seeing a spike in activity that disappears in a week.

On-chain metrics are confirming this. Daily transactions on Ethereum recently reached 2.8 million, a 125% year-over-year increase. The number of active addresses has more than doubled in the past year, surpassing 1 million according to Etherscan. And staking has reached nearly 36 million ETH.

The interesting part is why this is happening. Much of this growth comes from the massive increase in stablecoin usage on Ethereum, and fees are falling at the same time. Ethereum is moving execution to Layer 2 while keeping secure settlement on layer 1, meaning the network is finally scaling for real.

Analysts are quite optimistic. Justin d'Anethan from Arctic Digital points out that indicators previously in oversold territory are recovering, driven by new capital flows into ETFs, stablecoins, and native crypto protocols. Nick Ruck from LVRG Research observes that all this solid network activity, combined with sustained ETF flows and growing optimism, positions ETH for a possible breakout in the short term.

Michaël van de Poppe mentions that there is significant compression ongoing with ETH that will likely break soon. The price has recently been around $2.36K, down from the highs of $3,400 touched a couple of months ago.

What I see here is that the actual user growth on Ethereum, combined with technical scalability improvements and stronger on-chain fundamentals, is creating conditions for more than just market noise. If these new users continue interacting with the network as the data suggests, that should be bullish for ETH in the long term.