Ethereum transactions recently surged to a new peak, reaching an average of 1.74 million transactions per day, surpassing the previous record of 1.65 million set on May 12, 2021. This uptick in activity comes in light of enhanced regulatory clarity regarding liquid staking, where the U.S. SEC has determined that some liquid staking activities do not qualify as securities under the 1933 Securities Act, encouraging institutional participation.

The substantial growth in the Ethereum network is reflected in the 163% price increase observed since April, now closely approaching $4,000, a price level that has not been seen since December. Approximately 30% of the total ETH supply is now staked, totaling over 36 million ETH.

In a recent podcast, co-founder Vitalik Buterin remarked, “ETH being an asset held in company treasuries is beneficial; providing more options is advantageous,” but he also cautioned against the risks of over-leveraging.

Ethereum Transaction

As companies increasingly purchase and hold ETH directly, they command nearly $11.77 billion worth of the cryptocurrency, signaling strong market confidence and a reluctance to liquidate holdings.

“If you woke me up in three years and told me that treasuries caused ETH’s downfall, my guess would be that they led to an over-leveraged environment,” Buterin expressed, encouraging prudent management among ETH investors.

Overall, the initiation of liquid staking alongside unprecedented institutional interest is significantly reshaping Ethereum’s market dynamics.