Ethereum recorded a sharp rise in network activity during the second quarter of 2026, with transaction volumes, fees and ETH burning all reaching higher levels. At the same time, monthly active users fell 30%, creating a growing gap between network usage and the number of people actively using the blockchain.

Ethereum’s layer-1 processed 203.9 million transactions in Q2, a 68.4% increase compared with the same quarter last year. Average throughput also reached a record 25.9 transactions per second. ETH’s price has not mirrored that network growth, with the token recently trading at $2,474.27, down 1.5% over the previous 24 hours.

The figures suggest that Ethereum is handling significantly more activity without a corresponding increase in unique users. A greater portion of that activity may be coming from high-frequency participants, protocols, automated systems and infrastructure providers. As a result, rising transaction numbers may not necessarily indicate that Ethereum is attracting a broader retail user base.

That distinction could make transaction growth a less straightforward measure of adoption.

Ethereum Fees and ETH Burning Surge in Q2

The network’s financial activity also strengthened during the quarter. Ethereum generated $52.5 million in onchain fees, up 31.6% from a year earlier. ETH burn revenue increased even more sharply, rising 112% to $17.1 million.

The burn figure represents fees that are permanently removed from Ethereum’s circulating supply. Higher fees and greater ETH burning indicate that transactions generated more economic value than they did during the same period last year, despite the decline in active users.

Ethereum also posted records in staking and ETH ownership. The percentage of ETH staked climbed to 32%, while the number of addresses holding ETH reached an all-time high of 312.1 million.

Tokenized assets provided another source of growth. Ethereum hosted an average of roughly $203.1 billion in tokenized assets during Q2, including about $176.8 billion in stablecoins and $20.8 billion in tokenized funds. The figures highlight the network’s expanding role as infrastructure for settlement and tokenized financial products.

The trend is consistent with broader developments across the Ethereum ecosystem, where institutional accumulation has increased and activity from other networks has increasingly moved onto Ethereum’s base layer. This could mean that network growth is becoming more dependent on institutional users, protocols and infrastructure rather than widespread retail adoption.

Ethereum Posts Another Record Quarter, But Users Decline

The Q2 figures continue a trend that began earlier in 2026. Research based on Token Terminal data shows that Ethereum processed 200.4 million layer-1 transactions in Q1, while average throughput reached approximately 25.78 TPS.

Monthly active users averaged around 13.2 million in Q1. Against that backdrop, the 30% decline in Q2 becomes even more significant and highlights the growing disconnect between transaction activity and the number of active participants.

Some analysts have suggested that a higher block gas limit may have contributed to Ethereum’s sustained increase in throughput. However, the underlying dataset does not directly confirm that explanation.

Taken together, the Q2 numbers present a complicated picture for Ethereum. The network processed more transactions, generated higher fees and burned more ETH, yet fewer active participants were behind that activity.

Ethereum’s 32% staking ratio could also reduce the amount of ETH available in the liquid market. Some traders view this tightening of supply as a potential long-term bullish factor, although it does not guarantee higher prices.

ETH dropped from roughly $2,400 in early April to lows near $1,500 in June before recovering above $2,500 by mid-September. The rebound raises another question: how much of the recovery is supported by Ethereum’s underlying network activity and how much reflects the broader cryptocurrency market.

Q3 user data may provide a clearer answer. A stabilization in active users could suggest that institutional and infrastructure growth is complementing broader adoption. Another decline, however, could indicate that Ethereum’s rising activity is becoming increasingly concentrated among a smaller group of participants.