Ethereum, Solana and Avalanche see stronger onchain use even as tokens fall 50%+
AI Market Summary
Rising activity and lower fees on Ethereum, Solana, and Avalanche highlight improving usage fundamentals even as ETH, SOL, and AVAX have declined ~50%+, underscoring a disconnect between adoption metrics and market pricing. Cheaper block space boosts throughput but compresses protocol revenues, weakening fee-driven value capture. Ethereum staking at 40.2M ETH (~one-third of supply) with institutional inflows signals continued balance-sheet level engagement despite soft price action.
Impact level
● Medium
Affected assets
ETH/USDT-3.75%
AI Insight · ETH/USDTAI Insight
● Neutral
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Ethereum, Solana and Avalanche recorded higher network activity and lower user costs over the past year, even as their tokens extended steep declines. The Block reported that ETH, SOL and AVAX are each down roughly 50% or more over the period.
Kam Benbrik, Bitwise's head of onchain research, said fundamentals and sentiment have diverged. Onchain usage has grown, but protocol design changes have made block space cheaper, weighing on network revenues.
Bitwise's quarterly staking report shows Ethereum staking stood at 40.2 million ETH at the end of Q2, about one-third of total supply. The report added that most new staking has come from institutional participants.
