• Despite the recent surge in Ethereum (ETH) prices, network activity on the blockchain has not witnessed a substantial boost.
• The impact of the Shanghai hardfork on the Ethereum network has been noteworthy.
• Glassnode’s report reveals a significant peak in deposit activity on June 2, with over 13,595 new deposits of ETH.

Despite the recent surge in Ethereum (ETH) prices, network activity on the blockchain has not experienced a significant boost, according to a recent report by Glassnode. The report highlights that gas prices, which serve as a measure of blockspace demand, have remained relatively low despite the price rally.

Despite the recent rise in #Ethereum prices, network activity has not experienced a significant boost with gas prices remaining relatively low.

For comparison, during the Shanghai upgrade in April, which preceded a similar rally in ETH markets, gas prices rose by 78%, compared… pic.twitter.com/fIvaCAsVJt

— glassnode (@glassnode) July 5, 2023

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Ethereum Prices and Network Activity

Glassnode’s report reveals that despite the upward movement in ETH prices during 2023, the increased prices have not translated into a substantial rise in network activity. Gas prices, which indicate the demand for blockspace, have remained relatively low, particularly in the week following the announcements of ETF filings.

During the Shanghai upgrade in April, which preceded a comparable rally in ETH markets, gas prices experienced a significant surge of 78%. In contrast, in the current week, gas prices have only seen a moderate increase of 28%.

The Impact of the Shanghai Hardfork

The Shanghai hardfork brought about the ability to withdraw staked ETH from the Ethereum consensus mechanism. However, instead of witnessing a surge in withdrawals, the upgrade has actually incentivized a fresh wave of deposits as stakers find confidence in the newfound flexibility.

The report highlights a peak in deposit activity (transaction counts) on June 2, with over 13,595 new deposits amounting to more than 408k ETH. In comparison, ETH exchange deposit transactions have remained relatively stable at around 30k deposit transactions during the same period.

Comparison of Staked ETH and Exchange Inflow Volume

A clear trend emerges when comparing the volume of newly staked ETH (blue) versus exchange inflow volume (red). Since the launch of the Shanghai upgrade, the volume of newly staked ETH has consistently been higher or at least equal in scale to exchange inflows.

Glassnode’s report sheds light on the current state of the Ethereum network, revealing that despite the recent surge in ETH prices, network activity and gas prices have not experienced significant growth.​