Bitwise said cheaper block space lifted network usage but squeezed revenue, while 40.2 million ETH were staked by the end of Q2 and most new inflows came mainly from institutions.
Ethereum, Solana and Avalanche recorded stronger network activity and lower usage costs over the past year even as ETH, SOL and AVAX each fell about 50% or more, highlighting a gap between blockchain use and token-market performance. Bitwise's Kam Benbrik said growing on-chain activity diverged from market sentiment because protocol design changes made block space cheaper and more abundant, reducing revenue without necessarily signaling weaker demand. Bitwise's quarterly staking report also said 40.2 million ETH were staked by the end of Q2, equal to about one-third of supply, with most new Ether added to Ethereum validator pools this year coming mainly from institutions, including exchange-traded funds and corporate treasury operations. The report said Ethereum's annualized staking yield was 2.84% in the second quarter versus 6.25% for Solana, and that more than 90% of staking rewards on both networks came from new token issuance rather than network fees, raising dilution risk for holders who do not stake.