Ethereum’s price slid sharply throughout 2026, falling roughly 62% from its all-time high of $4,953 in August 2025 down to about $1,888. Its market cap currently hovers near $230 billion, with the token down 36% year-to-date.
Despite the price slump, activity on Ethereum’s network is expanding rapidly. Data from Alphractal shows daily transactions consistently exceed 2.5 million, a notable rise from under 1.5 million for much of last year and even above the 1.6 million recorded at the 2025 peak.
João Wedson from Alphractal sees this solid transaction volume as a sign Ethereum trades below its true value. He predicts that the underlying fundamentals will fuel Ethereum’s outperformance over the next two to three years.
Inflow of Capital and User Growth
Capital continues flowing into Ethereum’s ecosystem despite the token’s weak market performance. Data from DeFiLlama indicates a $4.92 billion increase in total value locked on the network since July, suggesting investors remain bullish on Ethereum’s long-term prospects while earning associated yields.
Daily active users hit around 581,000 recently, marking an uptick in on-chain engagement and reinforcing Ethereum’s role as the primary settlement layer. This growing activity across transactions, locked capital, and users hints at sustained demand despite price headwinds.
Meanwhile, validator activity adds another bullish signal. The exit queue for validators has disappeared, contrasting sharply with the peak crash period when 2.6 million ETH awaited withdrawal. Now, around 2.52 million ETH are staked with a 43-day waiting period, reflecting strong conviction among validators holding their ETH.
