Ethereum network fee revenue fell 51% year-on-year to about $64 million in the second quarter, while transactions and staking reached new highs, Bitwise reported. The decline resulted from cheaper and more abundant blockspace rather than weaker demand.
Revenue measured in ETH also rose for the first time in over a year. Ethereum generated about $131 million in fee revenue during the second quarter of 2025. One year later, that figure had dropped to nearly $64 million.
Ethereum processed 203.9 million transactions during the quarter, up from 121.1 million a year earlier. Throughput also rose to 26 transactions per second from 15. The network increased its block gas limit to 60 million, creating more room for transactions. As a result, users paid less even as activity expanded.
Bitwise described rising use and falling fees as the quarter’s main pattern. Researchers linked the gap to protocol changes that expanded blockspace across blockchain networks. In ETH terms, quarterly revenue increased from 27,670 ETH in the first quarter to 31,166 ETH in the second. The weaker token price reduced the dollar total.
Active staking reached a record 40.2 million ETH, equal to about 33% of the total supply. Institutional inflows continued as more tokens entered staking contracts. Can rising usage and record staking offset weaker dollar revenue as Ethereum faces broader market pressure?
The same trend 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.
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. Still, 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.
Also Read: Ethereum Hits Record Transaction Volume as Low Fees Boost Network Growth
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.