Ethereum Q1 2026 Review: Record On-Chain Activity Despite Market Downturn

The Ethereum ecosystem showed significant growth in Q1 2026, despite a decline in USD-denominated asset sizes and fee metrics. On-chain usage hit all-time highs, with monthly active users, total transactions, and throughput breaking records. The average Total Value Locked (TVL) in the ecosystem reached $316.2 billion, down 11.0% QoQ but up 22.8% YoY.

Among the top five major public chains, Ethereum's TVL held a dominant lead, with its $316.2 billion far surpassing the combined total of TRON ($84.5B), Solana ($28.8B), BNB Chain ($10.3B), and Plasma ($5.7B). The high concentration of capital in liquid staking and lending sectors was Ethereum's most prominent structural advantage.

The QoQ contraction in lending was primarily driven by Aave, as the decline in crypto asset prices led to reduced lending demand, resulting in an approximate 24% drop in its total loan volume. Total ecosystem fees in Q1 amounted to $2 billion, down 16.9% QoQ and 7.8% YoY.