Bitwise research shows Ethereum, Solana, and Avalanche saw increased activity and lower fees despite token prices down over 50% year-over-year.
Macro & Markets ·
Bitwise research indicates that Ethereum, Solana, and Avalanche experienced increased network activity and reduced transaction fees despite their respective tokens trading down more than 50% year-over-year. The three blockchains showed elevated usage patterns alongside lower per-transaction costs, suggesting growing adoption or user engagement independent of token price movements.
The rise in activity contrasts with a decline in protocol revenues across these networks. This decoupling—more transactions and lower fees occurring alongside falling revenues—reflects the inverse relationship between transaction volume and per-unit fee economics when network congestion eases or demand shifts toward cheaper execution.
The findings leave open whether the increased activity reflects genuine new users entering these ecosystems, existing users consolidating holdings and reducing transaction frequency, or shifts in transaction type toward lower-fee operations. The revenue decline's sustainability and its implications for network security or economic incentives remain unexamined in the available data.