ETH Transaction Records Mask Shrinking User Base
The Ethereum network processed a record number of transactions in Q2 2026, but the user base behind it may not be growing as rapidly. According to recent data, the layer-1 network handled 203.9 million transactions, an increase of 68.4% year-over-year, with average throughput reaching an all-time high of 25.9 transactions per second.
This growth in transactions is being driven by a smaller number of users, including high-frequency traders, protocols, automated systems, and infrastructure providers rather than a broader retail base.
The data also shows that on-chain fees rose 31.6% to $52.5 million, while ETH burn revenue climbed 112% to $17.1 million. Staking participation reached an all-time high of 32%, with the number of ETH-holding addresses reaching 312.1 million.
The trend is a divergence from earlier predictions that Ethereum's adoption metrics would drive its price higher. The data suggests that institutions are accumulating more ETH, but this may not necessarily translate to a wider user base or increased retail participation in the market.