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Ethereum (ETH) price is eyeing a breakout above the $2,000 mark. This projection comes as stablecoin activity on the network has jumped to a new all-time high (ATH).
More stablecoins are being used on the second-largest blockchain, driven by improvements in scalability and the growing demand for decentralized finance (DeFi) services.
Ethereum’s Layer 2 networks now process transactions with costs similar to Solana, making it more affordable for users.
This and growing confidence from developers and the broader market have set the stage for Ethereum with a potential rally ahead.
The Ethereum Stablecoin Activity Outlook
Stablecoins, cryptocurrencies pegged to traditional currencies like the US dollar, are increasingly being used on Ethereum.
The digital asset class is important for many blockchain-based applications, especially in decentralized finance.
Ethereum is currently leading the stablecoin market, with over $123 billion in related tokens circulating on its network.
This big jump from the $22 billion recorded in early 2021 shows that Ethereum is important in the DeFi world.
The total stablecoin market has reached a new record of $227 billion, an increase of $2.94 billion in just 24 hours.
According to data from Cryptorank, Ethereum processed $1.18T in stablecoin transfers, marking the highest volume ever recorded on the network.
For comparison, in October 2024, stablecoin transfers on Ethereum totaled $556B, which is half the current volume.
Per the Cryptorank data, Ethereum has dusted its closed rival Tron with $605 billion in total stablecoins processed.
This growth highlights the increasing demand for stable assets, especially during market volatility or uncertainty.
The rise in stablecoin activity on Ethereum shows that more investors trust the platform to handle high volumes of transactions, even when prices are volatile.
Ethereum Price Outlook
This growth in stablecoin use is expected to affect Ethereum’s price positively.
Ethereum’s Layer 2 networks, like Arbitrum and zkSync, have lowered transaction costs to under $0.01
With a highly competitive blockchain ecosystem, this makes it a more affordable option for smaller, frequent transactions.
As more decentralized apps (dApps) with native stablecoin pools are built on these networks, the demand for Ethereum could increase.
A number of analysts have a positive disposition to Ethereum, with a prediction of a potential breakout for the digital asset.
Crypto analyst CryptoELITES has projected a bullish roadmap for Ethereum price, forecasting a $5,000 price target by May 2025.
This comes as a surge in user activity and on-chain whale movement suggests a major shift.
However, the price of ETH is trading well below this level. At the time of writing, the coin had a spot price of $1,642.84 after a 4.65% rally.
Pending the breakout to $5,000 as predicted, a more feasible target in the short term is $2,000.
Ethereum Onchain Updates and Value Impact
Ethereum’s on-chain activity shows strong signs of growth, which can further support its price.
Beyond the growing stablecoin outlook, the amount of Ethereum held on exchanges is also dropping.
Data from Glassnode shows that the percentage of the assets on exchanges has fallen from 24% in 2022 to below 13% by April 2025.
This reduced amount of available Ethereum on exchanges could lead to supply strain, which might cause a price rally.
Ethereum’s active developer community also plays a key role in its current outlook. Over 1,385 developers are currently working on Ethereum’s Layer 2 solutions.
Notably, Ethereum’s core contributors have set May 7, 2025, as the deployment date for the Pectra upgrade. This schedule follows successful testing on the Holesky and Hoodi testnets, respectively.
This upgrade may usher in more on-chain activity and growth, further boosting Ethereum’s market value.
