USDC Activity Surges on Ethereum as on-chain Activity Reaches New Records

Data shows Ethereum-based USDC activity is reaching record levels across several key metrics. The outstanding supply of USDC on ETH is now approximately $40 billion

Key Insights:

* On-chain activity surrounding USD Coin (USDC) has reached new records, highlighting the rapid usage of Ethereum.

* Data from early 2025 shows that USDC transfer volume, supply, and transaction count on the ETH network have all surged to all-time highs.

* The outstanding supply of USDC on ETH is now at around $40 billion, while the monthly transfer volume has spiked past $635 billion.

* The monthly transfer count has also risen to more than 7.2 million, indicating broad adoption of USDC and the ETH network.

* As Ethereum hosts the majority of USDC supply and transfers, its role as a financial settlement layer appears to be expanding.

* However, ETH price has shown mixed short-term behavior, trading at a critical technical level on the 4-hour chart.

* A potential double top has formed near the $2,700 resistance zone, which could lead to a 10% drop toward $2,200 if support breaks.

* If support holds, Ethereum may remain within a bullish ascending triangle structure, allowing for attempts to break resistance.

* The current technical setup suggests a neutral to slightly bearish outlook in the short term, but longer-term data shows stronger fundamentals with network activity increasing and capital flowing into Ethereum.

* More funds are entering Ethereum than any other blockchain network.

* Arbitrum, Polygon, and Base, all part of the Ethereum ecosystem, follow closely in terms of positive fund transfers.

* Solana, OP Mainnet, and Berachain, along with several other network tokens, have seen more coins go out than come in.

* This trend suggests a preference for Ethereum and its related entities among individuals and institutions.

* When new tokens flow into an ecosystem, it usually indicates increased user activity and optimism.

* The increased stablecoin usage and reserve flow help make a case for Ethereum surging again as a leading blockchain for DeFi and applications.

* Additional data shows that Ethereum's transactional velocity is also rising.

* The rate or velocity of ETH activities on the network is now 8.0, reaching its highest point in years.

* Increased activity in the network is evident with more users engaging in DeFi protocols and DAOs.

* If the metric goes up, it usually shows that more people are interested in using Ethereum for on-chain activities.

* While the price of ETH had different movements from velocity earlier in the year, that gap is closing now.

* Since falling below $1,500, ETH is now back above $2,500 in value.

* Analysts suggest that this change in market trends may lead to prices being driven by demand again.

* An increase in transaction speed and a rebound in price suggest the market is recovering.

* If current conditions continue, some expect Ethereum's price to reach the $3,500 to $3,900 range soon.