Activity in the Ethereum (ETH) ecosystem is changing as L2 usage cools while value remains tied to the base layer. The Daily Active User (DAU) ratio from L2 to L1 dropped sharply from the peak in 2025 to 1.12 in February 2026, indicating fragmented user growth.
As the application spreads across L2s, the base layer still secures settlement and liquidity, maintaining structural dominance. The near $163.3 billion stablecoin supply on the mainnet confirms that capital continues to be concentrated where certainty and security are strongest.
Wage dynamics reinforce this difference. base wages average 12.6 gwei and only 267 ETH burned weekly, reflecting reduced demand. Since the L2s contribute minimal combustion, the economic value remains tied to the L1.
This shift shows that Ethereum is consolidating as a capital hub where liquidity is concentrated even as user activity disperses.
Ethereum regains liquidity dominance
This shift becomes clearer as user activity and liquidity stop moving together across layers. L2-ETH Daily Active Addresses (DAA) ratio increased from around 2 in early 2023 to over 15 in mid-2024; This shows that users are rapidly switching to L2s for cheaper transactions.
However, this growth did not last long; The rate dropped to around 10-11 in 2026, indicating that user activity is slowing down. This decline suggests that L2 use is weakening rather than expanding.
Capital shows a different trend; The L2-ETH stablecoin ratio rose to around 0.30 before settling around 0.20-0.22, meaning liquidity is better than user activity.
This imbalance means that value remains where safety and resilience are strongest. As a result, Ethereum remains the main layer of liquidity even as activity spreads to L2s.
Ethereum’s role as settlement layer
This trend is also supported by changes in regulations affecting capital flows. To illustrate the preference for regulated assets, Ethereum has gained roughly $9.6 billion, or 58% of the $16.5 billion RWA market, thanks to institutions seeking compliant systems and trustworthy solutions.
As this demand grows, capital remains at the base layer because high-value transactions require strong security and certainty. This explains why liquidity remains constant even as user activity spreads to cheaper L2 networks.
ETF flows support this trend: Detect ETH Products attracting $9.9 billion inflow by 2025 and AUM It will exceed $12 billion by 2026. This steady growth shows that institutional trust is increasing.
This model shows that Ethereum is solidifying its position as the primary layer for large-scale value settlement.
As a result, if this capital continues to grow, Ethereum could strengthen its role and allow ETH to gain value as more activity settles in L1. However, if users remain in L2s while capital remains passive, growth may not translate into stronger price performance.
Final Summary
- Ethereum sees capital concentrated in L1, with $163.3 billion in stablecoins and 58% RWA share, while L2 activity weakens.
- ETH now relies on active capitalization as L1 flows support strength, while passive liquidity can limit price increases.
