Layer 1 Blockchains Suffer Billions in Losses as Validator Inflation Costs Soar

Crypto data provider Kaiko has released analysis showing that Solana and Ethereum suffered significant losses in 2025. According to the report, Solana recorded $4.15 billion in net losses while Ethereum lost $1.62 billion.

The losses were due to validator inflation costs far exceeding fee revenue across major Layer 1 blockchains. Despite generating $260 million in revenue and $170 million in fees respectively, both networks posted significant losses under the same calculation.

Tron, on the other hand, produced $624 million in revenue and maintained net token deflation, making it the only traditional Layer 1 operating with positive earnings.