Ethereum’s Price Underperformance Contrasts With Explosive Growth In ETH’s Real Activity – See How

Ethereum’s price continues to witness heightened volatility due to the bearish conditions of the broader cryptocurrency market, causing the altcoin’s value to drop to the $3,000 mark, a level not seen in months. While ETH’s price has fallen sharply, the network’s real economy has displayed significant growth faster than ETH’s market value.

ETH Market Slow, But Real Economy Is Expanding

The growth of Ethereum’s on-chain economy is significantly faster than the movement of its native asset price. Overall, the Ethereum network has quietly entered a phase of significant real-world growth, as evidenced by soaring transaction revenues, surging stablecoin settlement volumes, and an accelerating ecosystem of decentralized apps.

This growing disparity between price and real economy was shared by Milk Road, a market expert on the social media platform X (formerly Twitter). According to the market expert, the real economy of the underlying network has experienced a 3x growth faster than the price of ETH.

Data shared by Milk Road shows that the supply of stablecoins available on the Ethereum blockchain is up by 65.5x. Such a substantial growth implies that money only moves where activity is taking place, which is the clearest signal of actual demand in the broader crypto sector.

Meanwhile, Milk Road highlighted that ETH’s fully diluted market cap has increased by 21.6x over the same period. The discrepancy between Ethereum’s core economic activity and its market value raises the possibility that investors are underestimating the network’s actual strength, which might lead to a realignment.

What this means is that the blockchain’s economic engine scaled far beyond its valuation for nearly 5 years. However, the expert noted that the difference between the supply of stablecoins and the completely diluted market cap won’t remain this large indefinitely if price ultimately catches up to activity, as it always does.

Fundamentals Remain Strong Amid Ethereum’s Weak Sentiment

Ethereum is still showcasing on-chain strength, hitting new milestones even in the ongoing market volatility. Leon Waidmann, the head of research at On-chain Foundation, disclosed that while prices are down, the blockchain-powered dollar economy recently reached a new all-time high.

For the first time ever, the overall value of all stablecoins that are secured on-chain pushed past $300 billion. Meanwhile, ETH layer 1 singlehandedly accumulates over $170 billion of the total supply, reflecting its growing adoption and rising dominance. Overall, sentiment around ETH, particularly towards its price action, may be weak, but its fundamentals remain robust.

In another X post, Waidmann stated that crypto players continue to declare that ETH is dead, while the blockchain keeps acting in the opposite direction. The network’s block space usage has been climbing nearly nonstop for the past 10 years. 

Presently, the blockspace consumption has hit a new all-time high in 2025. According to Waidmann, this is beyond mere hype; it is driven by real economic activity settling on a global trust layer like Ethereum, as evidenced by the continuous growth of its fundamentals.