- Ethereum hits record activity across addresses and contracts.
- Its price has dropped 30% due to fee compression and outflows.
Despite Ethereum’s network activity reaching unprecedented heights in early 2026, ETH’s price has struggled, leaving investors puzzled about the disconnect.
Ethereum Network Activity Surges
why scaling ethereum mainnet is the right direction:
active addresses on ethereum is at an all-time high. pic.twitter.com/yjd433G0xW
— Joseph Young (@iamjosephyoung) February 5, 2026
February 2026 saw daily active addresses on Ethereum approach 2 million, surpassing peaks from the 2021 bull market. Smart contract calls exceeded 40 million per day, and token transfers hit all-time highs. New wallet creation averaged 284,800 per day, up 64% from five years ago.
Layer 1 and Layer 2 throughput also crossed 100 Mgas/s, driven by Base at 30.54 Mgas/s, Polygon PoS up 189% in six months, and rising chains like Scroll and Unichain. Over 37.25 million ETH is currently staked, reducing circulating supply and enhancing network security.
On-chain metrics show Ethereum is busier than ever, with usage growth surpassing previous DeFi and NFT hype cycles.
Why ETH Price Is Lagging
Historically, higher activity correlated with rising ETH prices, but that link has broken down. Despite record usage, Ethereum’s price is down 30% over the past six months.
One reason is the fee compression caused by Ethereum’s scaling upgrades, including EIP-4844 in early 2024. Cheaper Layer 2 transactions mean users pay less in fees, reducing protocol revenue. DefiLlama data shows Ethereum generated $11 million in transaction fees over 30 days, ranking third behind Tron and Solana, while Base produced three times Ethereum’s base-layer protocol revenue.
Exchange flow data shows Ethereum trading faster than Bitcoin, highlighting distribution and capital outflows. Realised capitalisation has turned negative, signaling net outflows. Short-term sentiment isn’t aligned with the network’s fundamentals, keeping price stagnant despite record usage.
Key Levels to Watch for ETH
Technical risks remain. ETH faces near-term support around $1,750, with a failure to hold this floor raising questions about the next meaningful support. On the upside, reclaiming the $2,400–$2,500 range with strong volume could indicate improving sentiment.
Investors are now watching two potential scenarios: capital rotation back into ETH as Bitcoin dominance peaks, or continued pressure from fee revenue compression, keeping ETH range-bound even as on-chain activity climbs.
Ethereum’s 2026 roadmap suggests strong network fundamentals, but short-term price action may remain muted until sentiment catches up.
ALSO READ: How to Bridge Ethereum to Arbitrum (Step-by-Step Beginner Guide)
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