Ethereum Sees 41% Transaction Jump as Bitcoin ETFs Face Outflows

Ethereum network activity jumped 41% week-over-week, reaching roughly 3.6 million daily transactions by April 13 [1]. This surge coincided with Ether (ETH) outperforming Bitcoin (BTC) as capital shifted, with U.S. spot Bitcoin ETFs experiencing over $325 million in net outflows on April 13, led by Fidelity's FBTC and ARK's ARKB [1]. Meanwhile, Ether ETFs recorded $7.7 million in daily inflows and $187 million in weekly inflows by April 10, marking their strongest showing of 2026 after three weeks of outflows [1].

Despite the increase in transactions, the economic value behind Ethereum's activity appears to have decreased. Stablecoin transfer volume on Ethereum fell 42.6% over the same period, and fees dropped nearly 50%, suggesting smaller transaction sizes and less economic throughput [1]. This contrasts with the "stablecoin summer of 2025," when surging USDC and USDT transfer volumes drove Ethereum's economic throughput and helped push Ether toward $4,000 [1]. Bitcoin, however, has held firm despite the ETF outflows, indicating underlying spot support even as its primary source of demand weakens [1].

Separately, Coinbase and Circle committed to Hyperliquid's AQAv2 upgrade, which sent HYPE, Hyperliquid's native token, up to approximately $45 on May 14 [2]. This deal positions USDC as Hyperliquid's aligned quote asset and directs the majority of reserve-yield revenue back to the protocol [2]. Under AQAv2, Coinbase acts as the official USDC treasury deployer on Hyperliquid, with Circle managing technical deployment and cross-chain infrastructure [2]. Hyperliquid's stablecoin market cap stood at roughly $5.43 billion, with USDC accounting for about 93.5% [2]. The annual reserve-yield opportunity on Hyperliquid's USDC reserves is estimated between $150 million and $225 million, with the protocol potentially receiving $105 million to $202.5 million annually depending on the sharing percentage [2].

This move by Coinbase and Circle establishes a new template for stablecoin issuers to share reserve income with platforms generating demand, a shift from the previous model where almost all reserve income flowed to issuers [2]. The long-term durability of Ether's outperformance will depend on sustained ETH fund inflows, Bitcoin's ability to absorb ETF outflows without a sharp correction, and an improvement in the quality of Ethereum's on-chain activity [1].