Ethereum's Network Activity Surges, Setting Stage for Potential Rally

Ethereum's network activity has experienced significant growth in Q1, with a record-breaking 200 million transactions processed during this period. This surge in transaction volume is attributed to the implementation of upgrades such as Fusaka and Pectra, which have improved the network's fundamentals.

Despite the price action being weak, on-chain activity suggests that these upgrades are starting to show their effects. Transaction count was up 43% from Q4 2025, while active addresses climbed past 33 million and throughput reached 2.52 Mgas/s. These metrics indicate a clear uptick in overall network demand.

The question remains whether this on-chain momentum will translate into price gains for ETH in Q2. The cryptocurrency has already seen a 14% increase in value, outperforming BTC. However, the key question is whether this momentum can sustain itself and fuel further growth.