Ethereum staking hit a new milestone in Q3 2026, with a record 43.8 million ETH locked in staking contracts. This marks the sixth consecutive quarter of growth, with net staking inflows reaching 1.99 million ETH. Despite the surge in staking activity, annualized yields fell to 2.63%, down from 2.91% in Q1. The decline was attributed to a larger pool of staked ETH and reduced execution rewards from transaction fees and maximal extractable value (MEV).
Bitwise's Q4 staking report revealed that staked Ether accounted for 35.9% of the total supply by the end of Q3. Consensus rewards, generated through protocol issuance, contributed 2.53 percentage points to the yield, accounting for 96.3% of the total. Priority fees and MEV contributed just 0.10 percentage points. The blockchain generated 18,210 ETH in fees and MEV revenue, worth roughly $40.64 million, with average daily revenue falling to 198 ETH from 331 ETH in Q2.
Ethereum processed 199.32 million transactions during the quarter, slightly below Q2's 203.85 million but up 35.3% year-over-year. The average cost across four common transaction types dropped 67% year-over-year to $0.45 from $1.35. Bitwise attributed the lower costs to increased network capacity, which reduced competition for blockspace and put downward pressure on transaction fees.
The decline in staking returns was not unique to Ethereum. Solana's gross annualized yield dropped to 5.99% from 6.38%, while its validator count fell from 696 to 659. NEAR recorded a staking ratio of 46% and a yield of 4.87%. Hyperliquid had 436 million HYPE staked, generating a gross annualized yield of 2.24%. Beyond staking, the report highlighted growing activity in tokenized markets, with significant growth in tokenized equity volume on Solana and Hyperliquid.