Ethereum (ETH) has recorded its busiest quarter ever, processing over 200 million transactions in Q1 2026, a 43% increase from the previous quarter. Despite this surge in activity, Ethereum’s price has plummeted nearly 60% since its August 2025 peak, raising concerns for investors. The chain’s gas fees have dropped to about $0.11, a 98% decrease from three years ago, but this decline has not translated into benefits for token holders due to a fee-burning mechanism that has failed to effectively reduce supply.
The core issue lies in Ethereum’s shift to Layer-2 networks, which now handle 95% of transactions, leaving the mainnet’s fees insufficient to support the deflationary model intended by recent upgrades. As a result, Ethereum’s circulating supply has actually increased, complicating the outlook for investors. While the current fundamentals may suggest caution, upcoming upgrades like Glamsterdam could enhance throughput and attract new projects, potentially revitalizing interest in the asset.
For investors, the key takeaway is to reassess the long-term potential of Ethereum rather than capitulating to short-term price pressures. The ecosystem’s strength and upcoming enhancements may offer new opportunities, making it prudent to hold rather than sell at this juncture.
Source: fool.com