Ethereum, Solana and Avalanche See Higher Activity and Lower Fees Despite 50% Price Declines Over Past Year

ETH-0.68%
SOL-1.56%
AVAX-2.59%
According to Bitwise's latest quarterly staking report, Ethereum, Solana and Avalanche became busier and cheaper to use over the past year despite token prices falling by roughly half or more. The three networks saw increased on-chain activity and declining transaction costs, while institutional involvement and staking participation remained elevated. Ethereum staking hit a record 40.2 million ETH, representing one-third of the cryptocurrency's total supply, with inflows mainly from institutional investors including ETFs and corporate treasuries. However, network revenues declined sharply across all three protocols. Bitwise attributed the revenue drop primarily to protocol design changes that made blockspace cheaper and more abundant, rather than weakening demand. Ethereum's annualized staking yield registered at 2.84% in the second quarter, compared with 6.25% for Solana, though more than 90% of staking rewards came from newly issued tokens rather than user fees.
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