Ethereum Achieves User Milestone While Price Stagnates Despite Network Growth

In early 2026, BlackRock's staked Ethereum fund amassed an impressive $155 million on its debut trading day, surpassing even the initial performance of its Bitcoin ETF. This figure highlights one aspect of Ethereum's current narrative.

Key Takeaways

BlackRock's staked Ethereum fund launched successfully with $155 million on its first trading day.
Ethereum's price has fallen over 55% since August 2025.
Daily active Ethereum addresses reached a record 2 million, surpassing 2021 levels.
Over 37 million ETH is currently locked in staking contracts.
The correlation between network activity and Ether's price has weakened in recent months.
Ethereum generated about $10 million in transaction fees recently, trailing behind competitors like Tron and Solana.
Exchange reserves have plummeted to record lows, with many holders opting for cold storage instead of selling.

Ethereum

However, the other aspect presents a stark contrast: the price of Ethereum has plummeted by over 55% from its August 2025 peak of approximately $4,953, and the downward trend continues.

Record Network Activity

Ethereum is witnessing unprecedented activity, with daily active addresses reaching nearly 2 million in February 2026, surpassing the highs experienced during the 2021 bull market, according to analytics firm CryptoQuant.

The number of smart contract interactions has soared above 40 million daily, and roughly 37 million ETH—nearly 30% of the total supply—is currently locked in staking contracts. These figures indicate that more users are engaging with the network than ever before.

Yet, despite this growth, the price of Ether has dropped about 30% over the last six months as network activity reaches new heights.

Ethereum Mainnet now has active addresses at ALL-TIME HIGH levels! 📈
3.64 million weekly active addresses.
🔹 1 year ago: +97% growth
🔹 4 weeks: +13%
🔹 Polygon PoS closely follows at 2.84 million
🔹 Base: 1.99 million, Arbitrum: 785,000
Data via @growthepie_eth

Analysts suggest that the recent flow of capital and increasing exchange deposits now offer a better explanation for Ether’s price movements, diverging from the close correlation seen in previous bull markets. In 2018 and 2021, heightened activity supported increasing prices, but that trend is no longer the case.

Although Ethereum supports approximately $162 billion in stablecoin supply—making up roughly 52% of the global market—this activity has not resulted in a corresponding rise in the value of Ether. The blockchain is thriving, but its native token is not reaping the rewards as it once did.

ETH Price Chart

Understanding the Shift in Capital Flow

A key element to understanding the current situation lies in the evolution of Ethereum itself. During the 2021 cycle, peak monthly fee revenues surged past $500 million, primarily driven by Layer 1 activity. Today, the economic benefits increasingly favor Layer 2 operators and sequencers instead, diverting value away from direct ETH holders. The Ethereum network has scaled, but the asset seems to be missing out on this growth.

Recent data from DefiLlama indicates that Ethereum generated around $10 million in transaction fees over the last 30 days, landing it in third place behind Tron, which generated nearly $25 million, and Solana at approximately $20 million. Even as total usage rises, the base layer is losing fee share to competing networks.

Additionally, supply data conveys a different message. Exchange reserves have dwindled to 16 million ETH, marking a record low and a 30% decrease from 23 million ETH in 2023.

Approximately 7 million ETH, valued at around $13.7 billion, has been withdrawn from exchanges as holders transition their coins to cold storage and staking instead of preparing to sell.

While a reduced supply on exchanges may alleviate selling pressure over time, it does not inherently ensure a price recovery.

Featured image from Unsplash, chart from TradingView