Ethereum’s layer-1 community set all-time highs throughout each utilization metric in Q1 2026, with month-to-month energetic customers climbing 53.5% quarter-over-quarter to 13.2 million and transaction rely reaching 200.4 million, at the same time as ETH’s market cap dropped 30% and costs on the bottom layer fell almost 50%.
However based on Token Terminal’s Q1 2026 Ethereum Report, the divergence between the rising exercise and falling income is the entire level.
Ethereum Utilization Hits Document Regardless of Falling Charges and Valuation
The report, revealed on June 17, confirmed the numbers splitting cleanly alongside two traces. On the utilization facet, every thing went up, together with energetic month-to-month customers, which rose 85.9% year-over-year; transactions, which elevated 81.5% YoY to simply over 200 million; and throughput, which hit 25.78 transactions per second, an 81.7% soar YoY.
Nevertheless, on the greenback facet, issues weren’t so shiny. Ecosystem complete worth locked averaged $316.2 billion, down 11% from This fall 2025 however nonetheless up almost 23% year-over-year. In the meantime, base layer transaction charges got here in at $39.9 million, an nearly 48% fall from the earlier quarter and 81.9% beneath the place they have been a yr in the past.
Per Token Terminal, the charge compression had a direct trigger, specifically the Fusaka improve cycle’s second Blob Parameters Solely fork (BPO #2) in January, which raised Ethereum’s knowledge capability and made blockspace cheaper. Consequently, the transaction rely went up 38% whereas complete charges dropped by nearly half in the identical interval.
Etherealize, the group that’s working to push Ethereum’s capabilities to conventional finance and a contributor to the report, framed it this fashion:
“Ethereum is intentionally scaling the community on the expense of near-term charge seize, betting that cheaper blockspace unlocks way more demand (and ultimately community income) in the long term.”
They’re looking forward to the Glamsterdam improve, which is concentrating on a greater than 3x enhance within the gasoline restrict in Q3 2026, with Ethereum’s roadmap in the end guiding towards 10,000 TPS and near-instant finality by 2029.
On Ethereum’s structural place in tokenized belongings, the report famous that it had stayed largely intact by means of the quarter, with the whole tokenized asset market cap averaging $203.4 billion, simply 0.7% decrease than the quarter earlier than. Nevertheless, it was up 42.9% year-over-year, with stablecoins main at $178.9 billion, of which Tether’s USDT ($94.1 billion) and Circle’s USDC ($54.5 billion) accounted for the majority.
Tokenized belongings turned out to be the fastest-growing section, rising 60% QoQ and 325.9% YoY to $4.7 billion, most of which have been represented by tokenized gold, that’s, Tether Gold and PAX Gold. Tokenized funds additionally skilled related progress charges, rising 5% to 19.4 billion throughout the interval below dialogue. Regulated institutional merchandise from BlackRock’s BUIDL, WisdomTree, and Superstate have been among the many bigger holdings, alongside yield-bearing on-chain greenback merchandise from Sky and Ethena.
And out of the highest 5 blockchain networks, Ethereum had a share of 71% of the whole TVL, value $316.2 billion, in opposition to the $129 billion on Tron, Solana, BNB Chain, and Plasma collectively. It additionally holds greater than 79% of energetic DeFi loans, almost 62% of stablecoins, and 73% of tokenized funds, in addition to 84% of tokenized commodities.
Nevertheless, DEX buying and selling quantity was the one space the place Ethereum didn’t lead, with BNB Chain processing $162.5 billion in opposition to its $134.5 billion, as Solana got here third after pulling in $104.9 billion.
ETH Worth Underneath Stress
Apparently, not one of the exercise described above translated into value power for Ethereum’s native token. For one, the coin’s absolutely diluted market cap averaged $290 billion in Q1 2026, which was a 30.3% dip QoQ and nearly 10% throughout one yr.
On the time of writing, it was sniffing across the $1,700 stage after briefly hitting a 14-month low close to $1,500 earlier in June earlier than recovering considerably on information of a peace deal between the USA and Iran.
Analyst sentiment concerning it’s divided, with some like Daan Crypto Trades noting that ETH is on monitor for its second-worst first half of the yr since 2022 after a 29% plunge in Q1 and one other 21% decline thus far in Q2. That places it on track for 3 double-digit quarterly losses in a row.
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