Proof-of-Stake Networks See Growth Despite Token Declines
Ethereum, Solana, and Avalanche have seen significant growth in on-chain activity despite their native tokens experiencing sharp declines in value.
A new report by Bitwise found that these proof-of-stake networks have increased network capacity, resulting in lower transaction costs for users. This shift is attributed mainly to protocol upgrades rather than weaker demand.
The improved performance has led to institutional staking growing, with over 40 million ETH (approximately one-third of Ethereum's circulating supply) entering staking by the end of the second quarter. However, staking yields have continued to decline due to increased competition and a larger group of validators sharing rewards.
The trend suggests that practical blockchain use now plays a significant role in network activity, rather than market sentiment and wider economic conditions.