Bitwise said Ethereum staking reached a record 40.2 million ETH during the quarter, as institutional investors continued to increase their participation in proof-of-stake networks.

Proof-of-stake blockchains rely on validators who lock up tokens to process transactions and secure the network, earning rewards in return. The consensus model has become the standard for most newer blockchains and has drawn growing institutional interest as a way to generate yield on digital asset holdings.

Solana had the highest staking participation among the networks analyzed, at 68%, while Near, Hyperliquid, and Avalanche also showed substantial staking activity.

The findings were included in Bitwise's first quarterly Staking Report, published on July 23. The report covered Ethereum, Solana, Hyperliquid, Avalanche, Near, and Tempo, and said blockchain usage rose across major networks even as protocol fee revenue declined because of lower transaction costs.

According to Bitwise, institutional participation continued to expand despite weaker digital asset prices and lower protocol revenue during the period.

Ethereum Staking Reaches Record Level

Bitwise reported that Ethereum reached 40.2 million ETH staked during the quarter, the highest level recorded for the network. That amount represented 33% of Ethereum's circulating supply. Ethereum completed its transition from proof-of-work to proof-of-stake in September 2022, and staked ETH has climbed steadily since then as withdrawal functionality was enabled the following year.

The report said much of the recent growth was driven by institutional investors. Staking exchange-traded funds, corporate treasuries, and other large holders continued to add ETH even as market prices weakened.

Ethereum also recorded a sharp increase in transaction activity. Quarterly transactions rose from 121.1 million to 203.9 million, while throughput increased from 15 transactions per second to 26 transactions per second.

At the same time, Ethereum's fee revenue fell 51% year over year to approximately $64 million. Bitwise said the decline reflected intentionally cheaper and more abundant blockspace rather than a drop in demand.

Solana Posts Highest Staking Ratio

Across the broader set of networks reviewed, Bitwise found that staking participation remained consistently high. Solana recorded the largest staking ratio at 68%, followed by Near at 45%, Hyperliquid at 44%, and Avalanche at 41%.

The report also pointed to rising institutional involvement on newer networks. According to Bitwise, Coinbase and Circle each recently staked 500,000 HYPE tokens on Hyperliquid.

Solana also continued to show heavy network usage, with 9.8 billion non-vote transactions during the reporting period. Bitwise said tokenized equities trading volume on Solana increased from $1.34 million to $3.32 billion over the previous 12 months.

Network Activity Rises as Fees Fall

Bitwise said the same pattern appeared across the networks it analyzed: staking and activity increased, while protocol fee revenue generally declined. The trend reflects a competitive landscape in which blockchain protocols have prioritized lower user costs, reducing per-transaction fees even as overall usage grows.

Avalanche processed four times more transactions than a year earlier, reaching 236 million transactions on its C-Chain, according to the report. Bitwise attributed the wider decline in revenue to protocol upgrades that intentionally reduced transaction costs.

The inaugural report was authored by Bitwise Head of Onchain Research Kam Benbrik and Protocol Researcher Rafal Klich. It said institutional staking continued to grow across both established and emerging proof-of-stake networks, while network usage remained resilient.