Ethereum has reached a milestone with record-breaking wallet growth, averaging 327,000 new wallets daily last week.
The surge follows the Fusaka upgrade, which reduced gas fees and boosted market sentiment. Over the past week, the network recorded 327,100 new wallets created per day. Sunday saw an all-time high of 393,600 new wallets in just one day.
Ethereum’s impressive performance coincides with a broader market rally, as the global crypto market cap increased by over 4% to hit $3.25 trillion. Ether’s price also surged by 7% in the last 30 days, further solidifying its recovery from a recent dip.
Lower fees spark fresh activity
The record wallet growth is linked to the Fusaka upgrade, rolled out in early December. The protocol upgrade improved how data is handled on the Ethereum network, particularly for Layer 2 systems. By reducing the cost for these systems, Ethereum became more affordable for users.
Gas fees dropped significantly, with the average cost reaching just 0.051 Gwei. The lower transaction costs have triggered increased activity on the network, with stablecoin transfers reaching a new record of $8 trillion in Q4. Ethereum’s blockchain also saw fresh engagement as users entered the ecosystem through decentralized finance (DeFi), gaming, and NFT applications.
Ethereum Gas Price; Source: Etherscan
Market sentiment shifts from fear to neutral
The shift in investor sentiment is another factor behind Ethereum’s wallet growth. After spending several weeks in the “Fear” zone, the Crypto Fear and Greed Index now reflects a “Neutral” stance. This positive shift has fueled Ethereum’s price surge, with Ether surpassing the $3,300 mark.
Ethereum’s recent 8% price increase in just 24 hours demonstrates a growing sense of confidence in the market. This shift in sentiment is helping Ethereum recover from a previous slump, and many analysts predict continued upward momentum. Ethereum is now trading at around $3,348 at the time of writing.
DEX trading and derivatives markets show calmer conditions
Despite Ethereum’s wallet growth and price rise, decentralized exchange (DEX) trading has seen a pullback. According to data from DefiLlama, aggregate DEX volumes for the past two weeks totaled $150.4 billion, down significantly from the record high of $340 billion in January 2025.
Over the last seven days, Ethereum’s DEX volume has hovered near $9 billion. This is a drop from the $27.8 billion peak in October. Similarly, derivative markets have cooled, with implied volatility measures for Bitcoin and Ether showing declines.
These figures suggest that traders expect less price fluctuation in the near term. However, there are still some notable players in the market, including SharpLink Gaming, which has accumulated over 865,000 ETH, valued at approximately $2.75 billion.
Ethereum’s wallet growth highlights the ongoing recovery and resurgence of confidence in the cryptocurrency market. The Fusaka upgrade, reduced gas fees, and shifting investor sentiment have created an environment conducive to fresh activity on the Ethereum network.
Despite a cooling off in decentralized trading and derivatives, Ethereum’s fundamentals remain strong, with new users entering the ecosystem at an unprecedented pace. With a favorable outlook for the coming months, Ethereum is likely to maintain its position as one of the leading cryptocurrencies in the space.
