Ethereum network activity surged to record-breaking levels during the first quarter of 2026, punctuated by a 53.5% jump in monthly average active users. Data from crypto intelligence platforms Token Terminal and NS3.AI reveals that the monthly average active user base reached 13.2 million, a record high for the blockchain.
This surge in participation occurs as the network finally eclipsed the 200 million quarterly transaction milestone for the first time in its history.
The total transaction count for Q1 2026 rose to 200.4 million, representing an approximate 38% increase from the previous three-month period. Daily active users also demonstrated strong growth, climbing 48% quarter-over-quarter to reach approximately 755,400. Analysts note that the heightened activity was not restricted to a single niche but was distributed across payments, decentralized finance (DeFi), and non-fungible tokens (NFTs).
This expansion marks a significant recovery from the volatility seen in 2025. During the first quarter of last year, Ethereum faced mounting macroeconomic pressure and the fallout from a $1.5 billion hack of the Bybit exchange. Those events sent prices tumbling toward multi-year lows of $1,400. While
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Layer 2 adoption fuels records in Ethereum network use
The unprecedented throughput of the Ethereum network is largely attributed to the maturity of Layer 2 scaling solutions, such as rollups. These protocols improve speed and reduce transaction costs by processing data off the main chain. Following the 2024 Dencun upgrade, transaction fees on many Layer 2 solutions have remained significantly lower, often averaging under $0.10 per transaction.
Onboarding figures for the quarter also reflect sustained interest from new participants. Approximately 284,000 new users joined the network during Q1 2026, representing an 81.5% increase compared to the final quarter of 2025. This influx arrives as many shifting market structures indicate breakout potential for the broader digital asset sector through the remainder of the year.
Broad-based adoption across different sectors has provided the network with a more stable foundation than in previous cycles. Unlike 2024, where growth was heavily concentrated in \”restaking\” protocols like EigenLayer and EtherFi, the 2026 surge is more diversified. This shift makes the ecosystem less vulnerable to the sudden cooling of a single sector or speculative trend.
Assessing the recovery from 2025 market lows
To understand the current record of 13.2 million monthly average active users, it is necessary to look back at the fiscal \”stress test\” of early 2025. Ethereum recorded its worst quarterly performance since the 2020 COVID crash during that period, with a total loss of approximately 44.54%. Monthly returns in February 2025 alone dropped by 31.95%.
The network’s ability to rebound from those lows to achieve record-high utility suggests a durable underlying ecosystem. While the price of ETH is currently trading at $1,745—well below the peaks of late 2024—the technical health of the protocol remains a focus for long-term holders. Many traders prioritize long-term moving averages to determine if this utility will eventually drive price recovery.
Institutional participation also appears to be recalibrating. In Q1 2025, major funds such as BlackRock, Fidelity, and Bitwise significantly reduced their ETH positions. However, the 200.4 million transactions processed in Q1 2026 indicate that the network has transitioned into a functional utility layer for decentralized applications and peer-to-peer payments that exists independently of fund flows.
Historical context of Ethereum network growth
Comparing today’s metrics to Q1 2024 highlights how far the infrastructure has evolved. Two years ago, Ethereum’s quarterly revenue soared to $1.2 billion, a 155% year-over-year increase at the time. While revenue structures have shifted toward Layer 2 solutions, the sheer volume of 200.4 million transactions today dwarfs the 107 million recorded in early 2024.
Staking remains a fundamental pillar of network security. By the end of March 2024, the Beacon Chain already held over 30 million staked ETH, valued at roughly $96 billion. Current validator commitment remains steady despite the price decline from nearly $4,100 in late 2024. This consistent staking activity provides the security necessary for the 755,400 daily active users to transact with confidence.
Challenges do remain, particularly regarding market share in decentralized exchange (DEX) trading. In early 2024, Ethereum’s share of DEX volume hit a low of 30% as competitors gained ground. The push toward 13.2 million monthly average active users in 2026 suggests the network is successfully leveraging its scaling roadmap to maintain its position as the primary settlement layer for decentralized finance.