Ethereum Fees Halve as Usage Surges: Bitwise Report Decouples Revenue from Activity

Ethereum network fees saw a sharp 51% decline in Q2, dropping to roughly $64 million. This revenue slide, however, masks a critical underlying trend: network usage surged, with transaction activity and staking reaching all-time highs.

Bitwise research confirms this divergence. Ethereum processed 203.9 million transactions in the quarter, up from 121.1 million a year prior. Throughput climbed to 26 transactions per second from 15, driven by an increased block gas limit.

The core insight: falling fees reflect cheaper, more abundant blockspace, not waning demand. The network is simply more efficient. In fact, when measured in ETH, quarterly revenue actually rose for the first time in over a year, indicating robust internal economics.

Staking activity further reinforces this strength. Active stake hit a record 40.2 million ETH, representing approximately 33% of total supply. This growth is fueled by continued institutional inflows, signaling deep conviction.

This pattern isn't isolated to Ethereum. Solana and Avalanche also show similar dynamics: transaction volumes near all-time highs while dollar-denominated revenue dips. Lower congestion and optimized protocols, not weaker user interest, are driving down per-transaction costs across major chains.