Ethereum network activity has surged to unprecedented levels, with active addresses and smart contract calls reaching record highs. However, despite this uptick in engagement, ether’s price has experienced a decline of approximately 30% over the last six months. Experts indicate that current capital flows and increasing exchange deposits are now more indicative of ether’s price movements than on-chain activity, marking a departure from the strong correlation observed in previous bull markets. Despite accounting for over 50% of the global stablecoin supply, Ethereum’s base layer is witnessing a decline in both fee and revenue share to competing networks. Ethereum’s network activity has reached unprecedented levels across various metrics; however, this growth has not translated into an increase in ether’s price or enhanced fee generation at the base layer.
A weekly report, published on March 10, revealed that daily active addresses on Ethereum neared 2 million in February 2026, surpassing the highs recorded during the 2021 bull market. Active addresses refer to unique blockchain wallet addresses that have engaged in sending or receiving a transaction within a defined period, such as the last 24 hours. Smart contract calls, which are codes on the blockchain instructing it to perform specific actions, have surged past 40 million per day, while token transfers fueled by internal contract interactions have also reached new heights. The findings indicate widespread adoption within DeFi, stablecoins, and automated protocol activity, despite a decline in investment demand for ether. Increased network user activity often signals positive trends for the market value of the blockchain’s native token. However, that situation does not apply to Ethereum. Ether, the native token, has seen a decline of approximately 30% over the past six months, and the one-year shift in Ethereum’s realized capitalization has dipped into negative territory, signaling net capital outflows from the market. According to exchange flow data, ether is being transferred to trading venues at a quicker pace compared to bitcoin, indicating a trend that aligns with increased selling pressure. It is that capital flows, instead of network activity, currently provide a more accurate explanation for ETH price dynamics.
In previous cycles, especially in 2018 and 2021, an increase in on-chain activity was associated with price surges. The relationship has deteriorated. The firm’s scatter analysis revealed that recent observations are clustering at high activity levels while maintaining relatively low prices. This indicates that the incremental usage growth currently has diminished explanatory power for ether’s valuation. The fee picture highlights the ongoing disconnect. According to data, Ethereum has generated approximately $10.3 million in transaction fees in the last 30 days, securing the third position behind Tron, which amassed nearly $25 million, and Solana, which garnered about $20 million. On a revenue basis, the gap widens further. Ethereum secured the fifth position in the 30-day protocol revenue standings, generating $1.22 million. It follows behind Tron, Polygon, Base, and Solana. Base, an Ethereum layer-2 network, has reportedly generated approximately three times the protocol revenue of Ethereum during the same timeframe.
The disparity highlights the increasing significance of Ethereum’s layer-2 ecosystem. Networks like Base and Polygon are handling substantial transaction volumes while incurring relatively low settlement costs back to the base chain. This approach effectively spreads economic activity throughout the wider Ethereum ecosystem instead of funneling it all into the base layer. Stablecoins continue to shine as a key area for adoption. According to DefiLlama, Ethereum is home to around $162 billion in stablecoin supply, accounting for about 52% of the global market. However, that activity has not resulted in a corresponding increase in value for ether itself. Ethereum is experiencing heightened activity, yet the native asset is securing a smaller portion of the value generated on the platform.