Ethereum, Solana, and Avalanche See Rising On-Chain Activity Amid Token Price Declines

Ethereum, Solana, and Avalanche have seen an increase in on-chain activity despite their native tokens experiencing significant price declines. According to a recent Bitwise staking report, the networks processed more transactions at lower costs during the past year.

The growth in network capacity is attributed to protocol upgrades rather than weaker demand. Ethereum, Solana, and Avalanche have increased their blockspace, allowing for cheaper transactions and rising institutional participation.

Institutional investors drove much of the additional Ethereum entering validator pools during the second quarter. Over 40 million ETH, roughly one-third of Ethereum's circulating supply, had entered staking by the end of the period.