In 2025, Ethereum's network activity reached record levels, even as the asset's price plummeted over 50% from recent peaks, according to analysts at CryptoQuant.

Experts noted a clear divergence between the demand for the blockchain and the value of the coin.

Daily active addresses surpassed the metrics seen during the 2021 bull market. Users are increasingly engaging with smart contracts, and the number of token transfers has hit all-time highs. The main growth drivers include the DeFi segment, stablecoins, and L2 solutions.

Analysts explained the gap between fundamental metrics and price as a result of investment outflows. Price dynamics are driven by capital flows rather than user growth.

Another negative factor has been the mass transfer of Ether to exchanges, which accelerated the decline in the ETH/BTC pair and confirmed increased selling pressure.

The systemic capital outflow is also reflected in the dynamics of realized capitalization, which has turned negative year-over-year. Currently, it is the movement of investor funds, not network activity, that dictates the cryptocurrency's price.

According to DefiLlama, Ethereum generated $10.29 million in fee revenue over the past 30 days, placing it third in the market behind TRON ($24.96 million) and Solana ($20.14 million).

In terms of net revenue, the blockchain ranked fifth with $1.22 million, falling behind TRON, Polygon, Base, and Solana. Notably, the L2 network Base from Coinbase earned three times more revenue than Ethereum in the same month.

The reason for this imbalance lies in the development of second-layer solutions. L2 networks handle vast volumes of transactions but pay minimal fees for their recording on the main blockchain. This results in economic activity being "diluted" across the ecosystem, depriving the main network of revenue.

Despite the drop in revenue, Ethereum remains a leader in the stablecoin segment, with assets worth around $162 billion held on the blockchain—accounting for 52% of the global market.

Analysts conclude that although the network is more burdened than ever, the native token has ceased to directly benefit from this activity.

Recall that in March, experts from Culper Research predicted a "death spiral" for Ethereum and opened a short position.