Ethereum recorded its busiest quarter ever in Q1 2026, with 200.4 million transactions processed on the base layer, according to Artemis. It was the first time the network cleared the 200 million mark in a single quarter. That stands in sharp contrast to 2023, when quarterly transaction count fell to roughly 90 million, and to most of 2024, when activity stayed in the 100 million to 120 million range.
On-chain activity has climbed steadily since mid-2025
The rebound began in mid-2025 and continued quarter after quarter. By Q1 2026, transaction count had risen 43% from 145 million in Q4 2025, forming a clear U-shaped recovery from the 2023 low. On Ethereum, those transactions include ETH transfers, smart contract interactions, and token movements, all of which are processed and finalized on-chain.
Price has not followed the same path. Ether remains down more than 50% from its August 2025 high near $5,000, and was trading around $2,328 on Friday morning. Network usage has reached a record, but the native token has yet to reflect that growth.
Base, Arbitrum, and stablecoins are driving settlement demand
Much of the activity sits on Layer 2 networks, which handle transactions at lower cost and then post bundled data back to Ethereum for final settlement. Base and Arbitrum are the two largest examples cited in the report. Users interact on those networks, while settlement and bridging show up in Ethereum’s base-layer figures.
Stablecoins are adding to that flow. Token Terminal data shows the total stablecoin supply on Ethereum has climbed to a record $180 billion, representing about 60% of the global stablecoin market. Even when users never touch the main chain directly, L2 settlement and bridge activity can still push L1 transaction counts higher.
Higher transaction volume does not automatically mean higher fee capture
That increase in activity has a limit in economic terms. Some analysts have warned that strong L2 usage can mask pressure on base-layer fees. After the Dencun upgrade sharply reduced data costs for Layer 2s, Ethereum began earning less per transaction, which means more activity does not cleanly convert into higher burn or stronger value accrual for ETH holders.
The key questions now are whether Ethereum can hold above 200 million transactions in Q2 2026 and whether the growth is coming from real onboarding rather than bot activity, which has taken a larger share of stablecoin transaction volume on-chain.