Ethereum, Solana Prices Plunge Despite Rising Staking Activity

Crypto asset staking has increased significantly in recent times, leading to a rise in activity on Ethereum, Solana, and Avalanche networks. According to a report by Bitwise, institutional investment in these assets has also surged, with many investors moving into staking.

The report highlighted that the largest contributor of new ETH added to validator pools this year came from ETFs, corporate purchases, and large holders. As of the end of the second quarter, a record 40.2 million ETH, or one-third of total issuance, was staked. Bitmine, the largest Ethereum-based treasury company, holds over 5.8 million ETH, with more than 4.9 million being staked.

The revenue decline on these networks has been attributed to protocol designs making block space cheaper and more abundant. This, combined with weaker demand in some cases, resulted in a sharp decline in revenues for Ethereum, Solana, and Avalanche.