Ethereum, Solana and Avalanche became busier and cheaper despite token prices falling roughly half or more. Bitwise's first quarterly staking report covering the second quarter of 2026 documented this divergence between network fundamentals and market sentiment. Protocol design changes made blockspace cheaper and more abundant, Bitwise Head of Onchain Research Kam Benbrik said during a Monday interview with The Starting Block. Institutional staking involvement grew during the period despite declining revenues across the three networks.
Bitwise Reports Network Activity Increase Despite Revenue Decline
Bitwise's second quarter 2026 staking report showed blockchains becoming cheaper while onchain activity increased. Revenues declined sharply across Ethereum (ETH), Solana (SOL), and Avalanche (AVAX) during the quarter. The decline in revenue was driven mainly by protocol design, as networks made blockspace cheaper and more abundant, according to the report. Weaker demand played a part in some cases, but was not the general trend.
Ethereum Staking Reaches Record 40.2 Million ETH in Q2 2026
A record 40.2 million ETH, representing one-third of the cryptocurrency's total supply, was staked at the end of the second quarter. Institutional sources accounted for most of the ETH added to the validator pool this year. "When we looked at where the inflows are coming from onchain, they're really coming from institutions," Benbrik said. Bitmine staked over 4.9 million of the roughly 5.8 million ETH it owns on Monday, making it the largest Ethereum-based treasury. Holders choosing not to stake risk dilution because most staking rewards on Ethereum and Solana are funded through new token issuance, the report noted. Increasing participation in staking means rewards are spread thinner, pushing yields lower.
Ethereum Yields 2.84% While Solana Reaches 6.25% in Q2
Ethereum's annualized staking yield registered at 2.84% during the second quarter, compared with 6.25% for Solana. Newly issued tokens accounted for 93% of Ethereum's staking rewards and more than 90% of Solana's during the quarter. Most of the headline yield came from token issuance rather than fees paid by network users. Bitwise's clients stake both to gain exposure to the yield and support the underlying network, Benbrik said. Liquid staking solutions allow clients to get exposure to the underlying staking yield while using tokens for different activities in DeFi, including providing liquidity and depositing and borrowing against collateral.
FAQ
What did Bitwise's Q2 2026 staking report reveal about Ethereum, Solana and Avalanche?
Bitwise's first quarterly staking report covering the second quarter of 2026 showed that Ethereum, Solana and Avalanche became busier and cheaper to use even as their token prices fell by roughly half or more. The report documented that revenues declined sharply across all three networks, driven mainly by protocol design changes that made blockspace cheaper and more abundant.
How much Ethereum was staked at the end of Q2 2026?
A record 40.2 million ETH was staked at the end of the second quarter of 2026, representing one-third of Ethereum's total supply. Institutional sources accounted for most of the ETH added to the validator pool this year, according to Bitwise Head of Onchain Research Kam Benbrik.
What were the staking yields for Ethereum and Solana in Q2 2026?
Ethereum's annualized staking yield registered at 2.84% during the second quarter of 2026, while Solana's annualized staking yield reached 6.25%. Newly issued tokens accounted for 93% of Ethereum's staking rewards and more than 90% of Solana's staking rewards during the quarter.
