Ethereum in 2026: Record Network Activity Amid Price Stagnation – What’s Next?

• Why Is Ethereum Smashing Transaction Records While Its Price Lags?
• The Fusaka Effect: Temporary Boost or Game-Changer?
• Institutional Adoption vs. Retail Skepticism
• DeFi Dominance: Ethereum’s $70B Fortress
• Technical Outlook: Glamsterdam Upgrade Looms
• To Buy or Not to Buy? The Million-Dollar Question
• Ethereum in 2026: Your Questions Answered

Ethereum’s blockchain is firing on all cylinders in early 2026, processing a record 2.89 million daily transactions post the "Fusaka" upgrade. Yet, ETH’s price remains stuck NEAR $2,950—37% below its all-time high. This paradox has investors torn: Is this a bullish divergence signaling imminent price action, or just another case of "buy the rumor, sell the news"? We break down the on-chain data, institutional sentiment, and technical outlook, with insights from the BTCC research team and TradingView charts.

Why Is Ethereum Smashing Transaction Records While Its Price Lags?

The numbers don’t lie. January 2026 saw Ethereum’s network hit an all-time high of 2.89 million daily transactions, according to CoinMarketCap data. The December 2025 "Fusaka" upgrade—which boosted block data capacity—slashed fees and improved throughput so dramatically that Ethereum’s mainnet briefly surpassed Layer-2 solutions like Arbitrum in active addresses. "It’s like adding extra lanes to a highway during rush hour," notes BTCC analyst Liam Chen. "But here’s the kicker: Traffic’s flowing, yet ETH’s price is stuck in neutral."

The Fusaka Effect: Temporary Boost or Game-Changer?

Fusaka’s technical tweaks delivered immediate results: average gas fees dropped to $1.20 (down 68% pre-upgrade), while TPS (transactions per second) jumped to 45. But skeptics like JPMorgan’s crypto team argue that past upgrades (remember "Merge" hype?) didn’t sustain activity spikes. Meanwhile, Solana’s 3,000+ TPS still lures developers. Counterpoint: Ethereum’s staking ratio just hit 30%—that’s 36 million ETH locked—and the validator exit queue is empty. "When stakeholders aren’t budging, it’s a long-term vote of confidence," says DeFi researcher Maria Volkov.

Institutional Adoption vs. Retail Skepticism

Tom Lee of Fundstrat doubled down on his $8,000 ETH target, citing BlackRock’s ethereum ETF inflows and Visa’s stablecoin pilots. But retail traders seem unmoved—ETH’s open interest on BTCC and other exchanges remains flat. "It’s a tale of two markets," quips Volkov. "Institutions see infrastructure; retail sees memecoins pumping elsewhere."

DeFi Dominance: Ethereum’s $70B Fortress

Despite competition, Ethereum hosts 70% of DeFi’s total value locked (TVL), per DefiLlama. Key stats:

• TVL: $69.8B (up 22% YoY)
• Daily DEX volume: $4.3B
• Active protocols: 1,100+

Technical Outlook: Glamsterdam Upgrade Looms

ETH’s price charts paint a messy picture. After failing to hold $3,200 resistance, it’s now testing the 50-day MA at $2,900. The 2026 roadmap’s "Glamsterdam" upgrade (Q2) promises further scalability fixes—but markets might be fatigued. "Traders want price action, not tech specs," admits a BTCC futures trader. Historical data shows ETH tends to rally 3-6 months post-upgrade, but macro risks (Fed rates, crypto regulations) could delay the party.

To Buy or Not to Buy? The Million-Dollar Question

Here’s the dilemma: Fundamentals scream "accumulate," but price action whispers "wait." Pro tip: Watch the ETH/BTC pair. If Ethereum starts outperforming bitcoin (currently at 0.06 BTC/ETH), it’s typically an altseason signal. For now, the network’s health suggests ETH is undervalued—but in crypto, timing is everything.