Ethereum and Solana staking volume reached record highs in Q3 despite declining yield rates, with newly issued tokens funding most rewards.
DeFi & Yields ·
Ethereum and Solana staking volumes both reached record levels during the third quarter, according to analysis from Bitwise. The milestone coincided with a decline in staking yields across both networks, suggesting that increased participation did not translate to higher per-unit rewards for validators and delegators.
Newly issued tokens continued to represent the primary funding source for staking rewards on both chains during the period. This reliance on protocol-generated supply to incentivize staking activity marks a structural dynamic that persisted even as total staked assets expanded to new highs. The yield compression reflects the relationship between growing validator participation and the fixed or declining reward pools available to distribute.
The extent to which yield pressure may influence future staking participation rates, and whether protocols will adjust issuance schedules in response, remain open questions. The sustainability of record staking volumes under declining yield conditions has not yet been established.