Ethereum’s layer-1 network shattered records across every usage metric in Q1 2026. Monthly active users climbed 53.5% quarter-over-quarter to 13.2 million while transaction count reached 200.4 million despite ETH’s market cap sliding 30% and base layer fees plunging nearly 50%.
Usage Records Emerge Amid Revenue Drop 🦇
According to Token Terminal’s Q1 2026 Ethereum Report the split runs clear on two paths. Usage metrics climbed across the board with monthly active users up 85.9% year-over-year. Transactions jumped 81.5% YoY past 200 million and throughput peaked at 25.78 transactions per second for an 81.7% annual gain.
The report showed everything in sharp detail.
Yet dollar figures painted a gloomier scene. Ecosystem total value locked averaged $316.2 billion down 11% from Q4 2025 though still up 23% year-over-year. Base layer fees landed at $39.9 million almost 48% lower quarter-over-quarter and 81.9% below last year’s levels. 📉
Fee compression traces straight to the Fusaka upgrade cycle’s Blob Parameters Only fork in January that boosted data capacity and cheapened blockspace. Transaction volume rose 38% as total fees halved in tandem.
Etherealize Outlook Points Forward 🌑
Etherealize framed the move as deliberate network scaling at the cost of short-term fee capture betting cheaper blockspace will unlock greater demand and eventual revenue over time. Eyes now turn to the Glamsterdam upgrade slated for more than 3x gas limit growth in Q3 2026 on the path toward 10,000 TPS and near-instant finality by 2029.
Tokenized assets held steady with average market cap at $203.4 billion down just 0.7% quarter-over-quarter yet up 42.9% year-over-year. Stablecoins dominated at $178.9 billion led by Tether’s USDT at $94.1 billion and Circle’s USDC at $54.5 billion. That segment grew fastest rising 60% quarter-over-quarter and 325.9% year-over-year to $4.7 billion mostly through tokenized gold like Tether Gold and PAX Gold. Tokenized funds edged up 5% to $19.4 billion including holdings from BlackRock’s BUIDL WisdomTree and Superstate plus yield products from Sky and Ethena.
Just another echo from the void by iconofsin.eth 💖
