Ethereum’s quarterly fee revenue dropped 51% year-over-year to approximately $64 million in Q2 2026, even as transaction volumes and staking activity hit new records, according to a report from Bitwise. The decline stems from cheaper and more abundant blockspace rather than weakening demand.
Revenue measured in ETH actually rose for the first time in over a year. Ethereum generated roughly $131 million in fee revenue during Q2 2025, but that figure fell to nearly $64 million one year later.
Cheaper Blockspace Drives Higher Ethereum Usage
Ethereum processed 203.9 million transactions during the quarter, up sharply from 121.1 million a year earlier. Network throughput also improved to 26 transactions per second from 15. The network increased its block gas limit to 60 million, creating more room for transactions and reducing user costs even as activity expanded.
Bitwise described rising usage and falling fees as the quarter’s dominant trend. Researchers attributed the gap to protocol changes that expanded blockspace across blockchain networks. In ETH terms, quarterly revenue increased from 27,670 ETH in Q1 to 31,166 ETH in Q2, though the weaker token price reduced the dollar total.
Active staking reached a record 40.2 million ETH, representing about 33% of the total supply. Institutional inflows continued as more tokens entered staking contracts. The question remains whether rising usage and record staking can offset weaker dollar revenue as Ethereum faces broader market pressure.
The same pattern appeared on other networks. Solana processed 9.8 billion non-voting transactions near its record, while its dollar revenue declined. Avalanche handled 236 million C-Chain transactions, compared with 58 million a year earlier. Lower congestion reduced fees even as network use expanded.
ETH Price Faces Oil, Rates, and Technology Pressure
Ethereum traded near $1,927 on July 23 after reaching an intraday high of $1,941, according to crypto.news data. The token recovered more than 27% from its June low near $1,514. However, repeated failures near $1,955 kept ETH below the psychological $2,000 level.
Oil prices added pressure as Middle East tensions pushed crude higher for a fifth session. West Texas Intermediate moved above $90 per barrel. Attacks by Iran-aligned Houthis on Saudi oil tankers raised supply concerns. Higher energy costs could lift inflation and narrow the Federal Reserve’s policy options.
CME FedWatch data showed the probability of a September rate hike rising to 79% from 68%. Traders still expected no change at the July meeting. Technology shares also weakened after Alphabet lifted its 2026 capital-spending forecast to between $195 billion and $205 billion.
Alphabet reported negative free cash flow of $5.9 billion as quarterly spending doubled to $44.9 billion. Its shares fell during premarket trading. Meanwhile, US spot Ethereum ETFs recorded $72.64 million in net inflows on July 22, according to SoSoValue.
BlackRock’s iShares Ethereum Trust led with $53.47 million. The regulated products continued attracting capital while ETH remained below $2,000. BitMEX also announced plans to stop operations on September 23 following a strategic review by parent company HDR Global Trading.
The exchange told customers to close positions and withdraw funds before the deadline. BitMEX has served more than two million professional and institutional traders since 2014. Position transfers could shift leverage to rival platforms. Binance, Bybit, OKX, and other exchanges still operate larger Ethereum derivatives markets.
Ethereum fee revenue fell 51% even as transactions, throughput, and staking reached record levels. Cheaper blockspace reduced user costs, while ETF inflows supported demand. Still, oil prices, rate expectations, and weaker technology shares could continue influencing ETH’s attempt to reclaim $2,000.
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