Ethereum has achieved a significant milestone, processing a record 200.4 million base-layer transactions in Q1 2026, marking a robust recovery from the lows of 2023. This surge, driven primarily by Layer 2 solutions and stablecoin settlements, represents a 43% increase from the previous quarter and underscores a U-shaped recovery in network activity. However, despite this uptick in transactions, the price of ether remains over 50% below its August 2025 peak of nearly $5,000, highlighting a disconnect between network fundamentals and market valuation.
The increase in transaction volume is largely attributed to the growing use of Layer 2 networks, which facilitate cheaper transactions and contribute to higher base-layer counts without directly enhancing fee revenue or token burn. As stablecoins account for 60% of the global market and have reached a supply of $180 billion on Ethereum, this trend could indicate a sustained interest in the platform, albeit with potential risks for base-layer fee pressures.
For market professionals, this divergence between Ethereum’s transaction growth and ether’s price presents a compelling opportunity. Monitoring whether this momentum continues into Q2 will be crucial, as sustained high transaction volumes could signal a potential price correction or a new phase of growth.
Source: coindesk.com