Users and trading volume are both increasing, but on-chain costs are getting cheaper—L2 narratives are really taking off, and ETH is quietly making big profits.

Token Terminal releases Ethereum Q1 2026 report showing that Ethereum's monthly active users reached 13.2 million, an increase of 85.9% year-over-year, setting a new record; quarterly transaction volume reached 200.4 million transactions, an increase of 81.5% year-over-year, TPS reached 25.78, an increase of 81.7% year-over-year, all hitting new highs. Meanwhile, Layer 1 fee revenue dropped to $39.9 million, down 81.9% year-over-year. The report shows that the total value locked (TVL) in the Ethereum ecosystem reached $316.2 billion, accounting for 71% of the total of the top five public chains; active lending volume reached $21.8 billion, accounting for 79.2%; ecosystem application fee revenue reached $2 billion, accounting for 58.4% of the total of the top five public chains.