Ethereum, Solana, Avalanche See Rising Activity Despite Falling Prices, Bitwise Finds

Major blockchain networks including Ethereum, Solana, and Avalanche have become busier and cheaper to use over the past year, even as their token prices dropped by roughly half or more, according to a new report from Bitwise.

Fundamentals Diverge from Market Sentiment

Bitwise’s Head of Onchain Research, Kam Benbrik, said the data shows a clear split between network activity and price performance. While transaction costs fell and usage increased, staking revenues declined sharply across all three networks, driven mainly by cheaper, more abundant blockspace rather than weaker demand.

The report highlighted rising institutional participation in staking, with ETFs and corporate treasuries accounting for most new Ethereum added to the validator pool this year. A record share of Ethereum’s total supply was staked by the end of the second quarter, with most inflows traced to institutional players.

Yield Comes Mostly from Token Issuance

Ethereum’s staking yield stood at 2.84% for the quarter, compared to 6.25% for Solana, though the vast majority of those rewards came from newly issued tokens rather than network fees. Bitwise noted growing interest in liquid staking, which allows holders to earn yield while still using their tokens elsewhere in decentralized finance.