Ethereum news: The network processed 200.4 million transactions in Q1 2026, a new quarterly record—up 43% from 145 million in Q4 2025. Growth was driven by Layer 2s such as Base and Arbitrum, along with $180 billion in Ethereum stablecoins. Despite the surge in activity, Ethereum’s price today is more than 50% below its 2025 peak. Analysts warn that increased usage may not translate to higher ETH burns or increased value.

ChainCatcher report, according to CoinDesk, the Ethereum network processed 200.4 million transactions in the first quarter of 2026, surpassing 200 million in a single quarter for the first time—a 43% increase from 145 million in the fourth quarter of 2025—showing a clear U-shaped recovery curve. Quarterly transaction volume hit a low of approximately 90 million in 2023, remained flat between 100 and 120 million throughout 2024, and only began a gradual quarterly rebound from mid-2025. However, a clear divergence has emerged between Ethereum’s native token ETH price and on-chain activity: ETH is currently trading at around $2,328, down more than 50% from its all-time high near $5,000 in August 2025. The primary drivers of this transaction volume growth are two-fold: first, Layer 2 networks such as Base and Arbitrum process user transactions and then settle and bridge data back to the Ethereum base layer; second, the total supply of stablecoins on Ethereum has reached a record high of $180 billion, accounting for approximately 60% of the global stablecoin market. Some analysts have issued risk warnings: following the Dencun upgrade, data costs on Layer 2 networks have dropped significantly, reducing the revenue per transaction earned by the Ethereum base layer—meaning increased transaction volume does not necessarily translate into proportional ETH burns or value appreciation for holders. Additionally, the rising share of bot activity in on-chain stablecoin transactions further casts doubt on the quality of this growth.