Ethereum’s first-quarter data showed a clear split: user activity reached record highs while fees and market value fell. The report points to a network scaling aggressively as tokenized assets, stablecoins, and institutional finance continue to build on its base layer.
Key Takeaways:
Ethereum hit 13.2M monthly users in Q1 2026, while L1 fees fell 47.9%.Blackrock, Circle, and Tether helped drive $203.4B in tokenized assets on Ethereum.Ethereum’s 31% staking ratio and AI-focused ERC-8004 signal long-term growth plans.Ethereum began 2026 with a mixed but revealing quarter. Usage hit new highs, while market value and fee revenue moved lower.
The striking part is what happened to fees. Layer-1 transaction fees fell to $39.9 million, down 47.9% from the previous quarter and 81.9% year over year. The result shows Ethereum processing more activity at a lower total cost.
That is the core tension in the Ethereum Q1 2026 report: the network is scaling, but near-term fee capture is shrinking.
Tokenized funds continued to grow, rising 4.9% quarter over quarter to $19.4 billion. The segment includes products from Sky, Ethena, Blackrock, Wisdomtree, Superstate, and Ondo.
Tokenized stocks remained smaller but gained traction, rising 16.5% to $365.1 million. Ondo Finance led the category with onchain exposure to equities and ETFs.
Several upgrades helped shape the quarter. The Fusaka upgrade cycle’s second Blob Parameters Only fork increased data capacity in January. ERC-8004 went live in February, creating a standard for AI-agent identity and reputation. The Ethereum Foundation also set its 2026 priorities around scaling, user experience, and hardening layer-1.
