The Ethereum network set a new all-time record.
In the Q1 of 2026, the Ethereum (ETH) blockchain processed a record 200.4 million transactions at the base layer. It’s the first time in the network’s history that quarterly volume exceeded 200 million. That is more than double the lows of 2023.
Despite the sharp rise in activity, ETH▲$1,682.49’s price remains more than 50% below its all-time high of August 2025, when ETH traded around $5,000. At the time of writing, ether was worth approximately $2,350.
Related: Ethereum Price Prediction 2026. Will ETH Reach New All-Time Highs in May?
Why Is Network Activity Rising?
Most of the traffic comes from Layer 2 solutions such as Base, Optimism and Arbitrum. These process transactions cheaply and then batch them for final settlement on Ethereum’s base layer.
Additionally, stablecoin usage continues to grow on the network. The total supply of stablecoins on Ethereum reached a record $180 billion. That represents about 60% of the global stablecoin market.
Both factors—L2s and stablecoins—significantly increase L1 transaction volume, even if end users do not interact directly with the base layer.
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Ethereum Has Its Own Challenges
After the Dencun upgrade, which significantly reduced data costs for Layer 2s, rising transaction volume no longer leads to proportional increases in fees, ETH burn, or value accrual to holders. Ethereum earns less per transaction than before the upgrade.
Analysts note that the current situation shows a classic divergence between fundamental metrics (blockchain activity) and token price. Similar three-year U-shaped recoveries in activity have often preceded price increases rather than following them.
The question now is whether the network can sustain 200 million transactions in the next quarter. Another key factor is whether growth is driven by genuine user inflows rather than bot activity, which increasingly dominates stablecoin volumes.
