Ethereum, Solana, Avalanche see increased activity, lower costs despite token price drops

Blockchain activity on Ethereum, Solana, and Avalanche has increased over the past year, with lower transaction costs, even as token prices have fallen by over 50%. High staking participation and institutional involvement contributed to this trend. Bitwise's Head of Onchain Research, Kam Benbrik, noted a divergence between network fundamentals and market sentiment, highlighting that while prices are down, onchain activity is rising. Bitwise's quarterly staking report indicated that although transaction costs decreased, revenues dropped sharply across the three networks due to protocol design making blockspace cheaper. Institutional staking is growing, with a record 40.2 million ETH staked by the end of Q2, primarily from large holders. Ethereum's annualized staking yield was 2.84%, compared to 6.25% for Solana, with most rewards coming from new token issuance rather than user fees. Bitwise clients are interested in staking for yield exposure and supporting network activity, with options like liquid staking allowing participation in DeFi.

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