Ethereum Posts Record Quarterly On-Chain Activity in Q1 2026
Ethereum reached a new on-chain milestone in the first quarter of 2026, logging its highest-ever quarterly activity on the base layer. Artemis data shows the network processed more than 200 million transactions, up 43% from 145 million in the prior quarter ending late 2025.
After bottoming around 90 million quarterly transactions in 2023, activity stabilized through most of 2024 before accelerating into 2026.
Much of the growth has been attributed to Layer 2 scaling networks that execute transactions off-chain and settle to Ethereum. Rollups such as Base and Arbitrum aggregate activity, which can lift recorded base-layer transaction totals over time.
Stablecoin expansion also contributed. Total stablecoin supply on Ethereum climbed to roughly $180 billion during the quarter, underpinning decentralized finance use cases as well as payments and remittance flows across the ecosystem.
Protocol efficiency played a role as well. The Dencun upgrade lowered data costs for Layer 2s, easing fee pressure on Ethereum mainnet. Despite higher usage, gas fees did not rise proportionally, and ETH burns did not increase in step with transaction growth.
Even with stronger network activity, Ether has hovered near $2,400, still more than 50% below its 2025 peak. Analysts point to a widening gap between on-chain usage and market valuation, with some interpreting the disconnect as a lagging market response to improving fundamentals.
At the same time, researchers caution that part of the transaction increase may reflect automated stablecoin transfers rather than new user adoption, leaving open questions about how much activity represents incremental economic demand.
Markets will be watching whether Ethereum can sustain more than 200 million transactions into Q2 2026 alongside continued growth in stablecoins and Layer 2 usage. The key issue is whether today's strong on-chain metrics translate into renewed long-term market strength as usage, scaling, and price trends continue to move in different directions.
