Decoupling of Crypto Token Prices from Network Fundamentals Continues

Ethereum, Solana, and Avalanche are processing more transactions than they were a year ago, yet their native tokens, ETH, SOL, and AVAX, are down roughly 50% or more over the same period.

The networks' success is driving usage higher due to cheaper transactions, but lower fees are reducing the value accruing to native tokens. As a result, token prices have decoupled from network fundamentals.

According to Bitwise, the main reason for revenue declines on these blockchains is protocol upgrades making blockspace cheaper and more abundant.

The widening economic disconnect has been especially noticeable on Ethereum, where layer-2 networks weakened the link between activity and ETH demand. Solana faces similar challenges, with much of its revenue flowing to developers and validators rather than SOL holders.