Key Points
Ethereum activity is surging back to a five-month peak, driven by a jump in DeFi interactions, smart contract executions, and stablecoin transfers, according to blockchain dashboards cited by Cryptopolitan on October 27, 2025. With gas costs staying unusually low, user engagement on Ethereum’s base layer has accelerated, ETH transfers have overtaken USDC transactions, and price momentum has returned above $4,000.
On-chain metrics show daily gas usage climbing to one of the highest levels in recent months, even as average fees remain muted thanks to scaling improvements and efficient execution paths. The result: more throughput at lower cost, a combination that typically correlates with healthier network demand.
Ethereum activity hits five‑month high
Fresh on-chain data points to elevated throughput on the L1 network:
- Daily gas used rose to a multi-month peak and remains elevated, per Etherscan visuals shared by Cryptopolitan.
- Ethereum activity increasingly favors the L1 chain versus recent months, while Layer 2 usage has cooled slightly on a relative basis, according to Grow The Pie analytics.
- Daily active addresses climbed to roughly 550,000, marking a firmer baseline for engagement.
Historically, periods of strong Ethereum activity often align with constructive market phases. The latest uptick has traders watching for a potential retest of prior highs, given the breadth of activity across DEX trading, lending, and stablecoin transfer rails.
Gas stays low as DeFi and stablecoins dominate
Despite the uptick, fees remain attractive by recent standards:
- Typical DEX swaps on mainnet have dropped toward about $0.21, with gas prices under 1 gwei noted on-chain.
- Ethereum activity is concentrated in DeFi, with smart contracts and stablecoin movements absorbing a large share of block space.
- Tether and Circle smart contracts remain among the most active, reflecting persistent demand for dollar-denominated flows.
Token burn metrics also reflect higher utilization. DeFi apps are currently the top gas consumers, destroying around 48 ETH per day via the fee burn mechanism. Routers and aggregators are busy again, a sign of deeper DEX activity and renewed appetite for perpetuals. At the margin, an opportunistic phishing contract even crept into the top gas burners—an unfortunate reminder that vigilance is essential when network usage heats up.
L1 vs L2: where the flow is going
Layer 2 networks remain vital to Ethereum’s scaling roadmap and still generate meaningful fee revenue. Recent snapshots suggest:
- L2s account for more than 15% of the ecosystem’s economic activity by revenue.
- Ethereum activity on L1 continues to hold the bulk of liquidity and settlement gravity, especially for larger transactions and high-value DeFi positions.
The interplay is dynamic. As gas dipped, some traffic shifted back to L1 for direct execution, while persistent L2 adoption supports everyday transfers, gaming, and microtransactions. Together, they help the network process more overall activity without sustained fee spikes.
Price, liquidity and risk metrics improve
ETH reclaimed $4,164.23 at last check, buoyed by stronger spot demand, revived DeFi flows, and a growing supply of stablecoins anchoring liquidity on-chain. The broader ecosystem shows renewed depth:
- Total value locked across Ethereum’s DeFi stack is above $89 billion, with Aave contributing roughly $32 billion alone.
- Lending activity is rising alongside risk appetite. Liquidatable ETH positions have doubled to about 2.2billion,comparedwithatypical 2.2billion,comparedwithatypical 1 billion range.
- Collateral thresholds reveal where sensitivity sits: smaller loans are vulnerable around $3,600 per ETH, larger positions cluster near $1,800, and additional exposure lies just under $1,400. Earlier in the cycle, the bulk of loans sat below $1,000, suggesting leverage has ticked higher.
The pickup follows October 10–11 turbulence that triggered liquidations primarily on centralized venues. Ethereum activity recovered quickly afterward, a pattern that signals participants were not in capitulation mode and continued deploying capital into DeFi strategies.
What’s driving the surge in Ethereum activity
Under the hood, several forces are at work:
- Cheaper execution: Sub-1 gwei gas levels and efficient routing lowered barriers for frequent on-chain actions.
- Stablecoin flywheel: Tether and Circle transfers underpin exchange flows, DEX liquidity, and treasury operations.
- DeFi rotation: Perpetuals, lending, and routers indicate traders are repositioning, arbitraging, and seeking yield opportunities.
- Smart contract growth: New deployments and active governance updates continue to pull users back on-chain.
- Engagement incentives: NFT mints tied to “gas user” identities and other on-chain badges nudged participation.
As these drivers compound, Ethereum activity can sustain higher baselines without a proportional rise in fees—a constructive sign for throughput and user experience.
Market reactions and the road ahead
Traders and analysts are parsing whether this spike in Ethereum activity is the start of a longer uptrend or a cyclical burst:
- Builders point to structurally lower fees and better UX as tailwinds for steady usage.
- Risk desks are watching leverage and liquidation clusters, especially if price volatility returns.
- Cross-chain strategists note that L2s remain healthy by revenue share even as L1 reclaims more execution, underscoring a two-tier demand pattern.
Policy watchers continue to monitor stablecoin oversight and market infrastructure rules. While the latest burst in Ethereum activity is market-driven, stablecoin transparency and exchange compliance remain important for sustaining institutional flows.
Metrics to watch next
To gauge whether momentum continues, keep an eye on:
- Daily gas used vs median gas price: sustained throughput at low cost is a strong signal
- Stablecoin net issuance and transfer volumes: proxies for on-chain dollar demand
- DEX share of volume: a window into risk appetite and liquidity depth
- TVL composition: lending vs staking vs derivatives mix
- Active addresses and new contract deployments: developer and user engagement
- Liquidation bands and funding rates: potential pressure points for leveraged positions
If these indicators stay firm, Ethereum activity could remain elevated into year-end, supporting the case for a durable utilization uptrend.
Bottom line
Ethereum activity at a five-month high reflects a healthier mix of DeFi trading, smart contract execution, and stablecoin flows, all happening while gas costs remain unusually low. With ETH above $4,000, TVL near $89 billion, and lending books expanding, the network’s core flywheels look intact. The balance between L1 gravity and L2 scale continues to help absorb demand efficiently. If execution costs stay contained and liquidity keeps building, Ethereum activity has room to extend its comeback—without sacrificing user experience.
FAQ’s
Why is Ethereum activity at a five-month high?
Ethereum activity is being driven by heavier DeFi usage, more smart contract executions, and a jump in stablecoin transfers, per Cryptopolitan on Oct 27, 2025. Daily gas used is at a multi‑month peak, ETH transfers recently surpassed USDC, and daily active addresses are around 550K. L1 engagement has risen while L2 has cooled slightly on a relative basis.
Are Ethereum gas fees low right now and how much is a DEX swap?
Yes. Despite higher throughput, average gas has been under 1 gwei, and typical mainnet DEX swaps are about $0.21, helped by scaling improvements and efficient routing. Fees can change with congestion, so always check current gas before transacting.
What does the surge in Ethereum activity mean for ETH price and DeFi TVL?
ETH recovered above $4,164.23, while total value locked is above $89B, with Aave around $32B. Strong stablecoin flows and renewed DeFi participation are supporting on‑chain liquidity, but prices remain volatile and can move quickly.
Article Source: mitrade
Image Source: Pixels
