Ethereum's network fee revenue fell 51% year-on-year to roughly $64 million in the second quarter of 2026, even as transaction activity hit a record 203.9 million — up from 121.1 million a year earlier. The divergence between rising usage and falling dollar revenue stems from protocol changes that made blockspace cheaper and more abundant, according to Bitwise researchers.
Why fees fell while usage grew
Throughput climbed to 26 transactions per second from 15 a year ago, and the block gas limit increased to 60 million. That combination created more room for transactions at lower cost. In ETH terms, quarterly revenue actually rose — from 27,670 ETH in Q1 to 31,166 ETH in Q2, marking the first increase in over a year. But the dollar value of that ETH fell sharply compared to the same quarter in 2025, when ETH was trading at higher prices.
Bitwise researchers attribute the split to protocol design that prioritizes cheap blockspace, not fading interest. “The network is being used more than ever,” they noted in a report, “but the economics have shifted.”
Staking hits a new record
Active staking reached 40.2 million ETH in Q2, representing about 33% of total supply. That's a record, driven by continued institutional inflows. The staking yield remains attractive for long-term holders, even as fee revenue per transaction compresses.
Solana and Avalanche show different patterns
Solana processed 9.8 billion non-voting transactions in Q2, near its all-time high, but dollar revenue also fell. Avalanche handled 236 million transactions on its C-Chain, up from 58 million a year earlier — a fourfold increase. The broader trend across smart-contract platforms: usage is up, but dollar-denominated fees are down as blockspace gets cheaper.
The question for Ethereum is whether the fee decline will eventually slow staking inflows or if institutional demand for yield will keep pushing the staking ratio higher. For now, the network is processing more transactions than ever, but earning less per transaction in dollar terms.
