Ethereum Network Activity Surges as Buterin Proposes New Digital Identity Model

• Ethereum has maintained over 1.2 million daily transactions since March 2025, showing consistent user engagement.
• Despite price volatility between 1,750 and 3,250 dollars, network usage remained strong and even increased.
• Ethereum fees surged 130.4% this week due to rising institutional DeFi activity and smart contract executions.

The transaction growth in Ethereum increased significantly in 2025, showing increased usage of Ethereum despite the volatility. Since March, daily transactions have regularly exceeded 1.2 million, with multiple spikes above 1.5 million.

The current figure is an increase compared to the daily numbers in 2023, which averaged between 900,000 and 1.1 million. In June 2025, Ethereum prices traded between $1,750 and $3,250, and the end-of-month price was around $2,430.

Meanwhile, the price of Ethereum fell after reaching its 2024 heights, but the number of transactions within it remained respectable. The stable on-chain activity indicates a steady rate of network engagement.

However, the volume increase correlates with the increased use of applications based on blockchain. The correlation was also noted in an increased rate of transactions since they were also associated with a period of price fluctuations, which indicated an elevated rate of trading activities and smart contract execution.

The Ethereum network is witnessing more engagement with more users than before. The existing trend indicates that it maintains utility even throughout corrective price periods.

Vitalik Buterin Proposes New Identity Framework

Ethereum co-founder Vitalik Buterin has introduced a change in digital identity systems to safeguard the position of users. In a recent blog post, he introduced the idea of pluralistic identity as the solution to the growing concerns about centrally constructed ID systems.

He reviewed existing applications of the zero-knowledge proof technology-based identity solutions, such as World ID, the Taiwan digital identity system, and European Union projects.

However, Buterin noted that while zero-knowledge proofs can mask personal information, they also risk enforcing rigid single-identity systems. He stated that privacy is undermined if users are forced into one verifiable identity.

As reported by his blog, this structure restricts users from having multiple accounts corresponding to different platforms or functions. Stressing that pseudonymity in realistic contexts frequently hinges on such division, he suggested it can be attained by putting several constraints in place.

Buterin recommended decentralizing the identification process to minimise exposure to coercion and increase flexibility. His pluralistic identity model involves social-graph-based tools like Circles or a combination of providers.

This may involve government records, social media or decentralized networks. He argued that this gives structure to the people without formal IDs or to stateless persons.

Ethereum Fundamentals Improve on Fee and Exchange Trends

According to the new data provided by Sentora (previously IntoTheBlock), the fees charged by the Ethereum network grew by 130.4% this week. Such growth is attributed to increased adoption of smart contracts and institutional activity in on-chain decentralized finance (DeFi). Higher fees usually indicate more demand on the blockchain, especially for executing contracts or transferring value.

Furthermore, the exchange netflows had a negative figure of 293 million dollars. This value shows the balance between the number of ETH transferred in and out of centralized exchanges. Negative netflows indicate a withdrawal rather than a deposit of ETH. The statistics indicate that users withdrew resources from exchanges, which could be because of market fluctuations.