Ethereum’s transactional revenue has experienced a remarkable surge following Donald Trump’s election victory, according to a recent report by Steno Research. Analysts believe this increase marks a pivotal moment for the Ethereum ecosystem, reinvigorating on-chain activity and bolstering its overall appeal.
“This outcome is crucial for all on-chain activity,” stated Mads Eberhardt, an analyst at Steno Research.
The spike in transactional revenue has spurred several significant developments, such as enhanced staking rewards and a higher volume of ether burned via transaction fees. These factors collectively improve Ethereum’s tokenomics, making it increasingly attractive to investors, the report notes.
Ethereum Surpasses Tron in USDT Circulation
The heightened activity isn’t confined to ether alone. For the first time in over two years, the circulating amount of USDT (Tether) on Ethereum has surpassed that on the Tron blockchain. This milestone reflects Ethereum’s strengthening position in the blockchain sector. Increased on-chain activity has driven higher demand for ether to facilitate transactions, contributing to the revenue boost.
Ethereum’s Layer-2 networks, known as rollups, are also experiencing unprecedented growth. By processing transactions outside the main Ethereum blockchain, rollups offer faster speeds and lower costs. Daily transactions on these networks continue to climb, and Steno Research predicts this trend will persist.
Rollups play a critical role in scaling Ethereum’s base layer by alleviating network congestion while maintaining security. While daily fees paid by rollups to Ethereum remain modest, Steno forecasts these could soon reach $1 million, marking a substantial contribution to Ethereum’s economic framework.
Ether ETFs Break Records with $2.2 Billion Inflows
In tandem with these developments, ether-focused exchange-traded funds (ETFs) in the United States reached a historic milestone last Friday. These funds recorded their largest-ever one-day net inflow, surpassing bitcoin ETFs for the first time. This shift indicates growing investor confidence in Ethereum’s long-term potential.
Ethereum also achieved a significant $2.2 billion in inflows this year, as detailed in a CoinShares report published on December 2. This figure represents a staggering $2 billion increase compared to 2021, setting a new benchmark for the asset.
While bitcoin maintains its dominant position with $34 billion in inflows this year, it has recently seen $457 million in outflows. CoinShares attributes this to profit-taking as bitcoin approaches the $100,000 psychological milestone. “Bitcoin saw outflows of $457 million, the first significant outflows since early September this year,” CoinShares noted.
Other crypto assets, including multi-asset products and Solana, have also seen notable inflows. Multi-asset crypto products attracted $441 million, while Solana garnered $110 million. Despite experiencing $20 million in outflows this week, Solana still recorded a $40 million inflow month-to-date, demonstrating resilience in the face of market volatility.
