Analysts at CryptoQuant have noted a unique situation in the Ethereum ecosystem: despite record growth in network activity, the value of the cryptocurrency continues to decline. This phenomenon has been termed the ‘adoption paradox’.
This is reported by Business • Media
Record Network Activity and Price Decline
In February 2026, the number of daily active addresses on the Ethereum network reached the highest levels in history, surpassing even the results of 2021, when the market was experiencing dynamic growth. Analysts are also recording peak activity in smart contracts: internal contract calls in decentralized applications are at historical highs, linked to the development of DeFi sectors, stablecoins, and L2 solutions.
Despite this, the price of Ethereum has dropped by more than 50% from recent local highs. According to CryptoQuant, if the bearish trend in the market continues, the value of ETH could decrease to approximately $1500 by the end of the third or the beginning of the fourth quarter of the current year.
“The increased ratio of Ethereum flows to exchanges compared to Bitcoin indicates greater selling pressure on the asset, which explains its lag behind the first cryptocurrency,” noted CryptoQuant.
Changing Market Signals and Investment Demand
Experts emphasize that the historical correlation between smart contract activity and the price of ETH has significantly weakened. Instead, the volumes of the asset flowing onto exchanges are now considered a more significant indicator for assessing the market — these volumes directly impact price dynamics.
Additionally, the decline in investment demand has a negative effect. Analysts note that over the past year, the realized capitalization of Ethereum — that is, the net inflow or outflow of capital — has shown a negative trend.
According to Julio Moreno, head of research at CryptoQuant, to complete the bearish market, a restoration of capital inflow into the network and a reduction in the volumes of Ethereum flowing onto cryptocurrency exchanges are necessary.
As of March 2026, the price of Ethereum is around $2100:
ETH/USDT Chart on Binance. Data: TradingView.
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