Ethereum Weekly Fees Hit Highest Since April As DeFi Sector Rebounds

Ethereum (ETH) has witnessed a notable surge in on-chain transaction fees, reaching levels not seen since April 2024. According to blockchain analytics firm IntoTheBlock, weekly fees for Ethereum climbed to $67 million, marking a 17.9% rise.

Weekly Ethereum fees hit their highest levels since April, driven by significant DeFi activity and rebalancing in response to this week’s $100K market retracement. pic.twitter.com/OX8bFLHS1r

— IntoTheBlock (@intotheblock) December 13, 2024

The increase indicates intensified activity on the Ethereum network, driven by a surge in decentralized finance (DeFi) usage and shifts within the broader cryptocurrency market.

Institutional Participation in DeFi

On-chain data also reveals that institutional investors are actively accumulating Ethereum-based DeFi tokens, further boosting its DeFi activity. Among these players, Galaxy Digital made substantial withdrawals from exchanges last Friday, including 1.07 million Uniswap (UNI) tokens worth $18.9 million and 27,722 Aave (AAVE) tokens valued at $10.19 million.

The trend underscores the growing involvement of institutional players in DeFi. Reports indicate that Galaxy Digital’s combined holdings of AAVE and UNI were valued at $56.26 million at the time of writing. Additionally, transactions by large AAVE holders surpassed 3,100 last week, a level not seen since 2022.

One notable crypto whale also recently drew attention by borrowing 3 million USDT to acquire an additional 11,605 AAVE tokens. Since October, the whale has accumulated 87,098 AAVE, valued at $22.88 million, with an average purchase price of $167 per token. Following AAVE’s recent price increase, the whale’s unrealized profit has surpassed $18 million.

According to CoinMarketCap, AAVE has delivered considerable returns in 2024. Its value has soared over 300% year-to-date and gained 342% in the past six months. Since July, the token’s price has surged from below $100 to over $360, marking its highest level since 2021.

Long-Term Confidence in ETH?

Alongside a surge in Ethereum’s weekly fee, IntoTheBlock also reported a sharp reduction in exchange flows, with net outflows from trading platforms totaling $778 million. 

The trend suggests that some investors have moved their ETH holdings to personal wallets, reflecting optimism about the asset’s long-term value. However, net flows rose slightly by $42 million compared to previous data, likely due to short-term selling pressure amid market volatility.