--- title: "Ethereum's Price Rally Catalysts Build as Bitwise Notes that Record Staking Is Restricting Supply" type: "News" locale: "en" url: "https://longbridge.com/en/news/293732789.md" description: "Bitwise reports that Ethereum's Q2 fee revenue dropped 51% YoY to $64 million due to expanded network capacity and lower costs, while transaction volume surged to 203.9 million. Record staking of 40.2 million ETH (33% of supply) restricts available liquidity. This divergence between falling dollar fees and rising usage suggests a strong foundation for long-term price growth, as cheaper access drives adoption and reduced supply supports higher valuations." datetime: "2026-07-24T09:16:01.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293732789.md) - [en](https://longbridge.com/en/news/293732789.md) - [zh-HK](https://longbridge.com/zh-HK/news/293732789.md) --- # Ethereum's Price Rally Catalysts Build as Bitwise Notes that Record Staking Is Restricting Supply Ethereum's (**ETH-USD**) revenue from network fees dropped 51% year-on-year to $64 million in the second quarter. However, ETH's underlying network activity and staking numbers have reached record levels during the same period. This has created a stronger foundation for a future ETH price rally, according to a report from Bitwise. ### Claim 55% Off TipRanks - Unlock powerful investing tools with TipRanks Premium to make smarter, more confident investment decisions - Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks The asset manager explained that lower fees came from expanded network capacity. This made transactions cheaper for users instead of showing that people lost interest. This type of growing adoption often acts as an engine for ETH price growth over longer periods. ## **Cheaper Network Fees Could Help Boost ETH's Price** During the second quarter of 2025, Ethereum generated about $131 million in fee revenue. One year later, dollar revenue stood near $64 million. At the same time, the actual usage of the Ethereum network grew a lot. Ethereum handled 203.9 million total transactions during the quarter, up from 121.1 million a year ago. Network speed also jumped from 15 to 26 transactions per second. Highlighting this trend, researchers at Bitwise noted, "The divergence between revenue and activity is the theme of the quarter. While fees fell, usage climbed." Lower transaction fees make the Ethereum network easier and cheaper to use, which helps bring in new users and supports long-term price growth for ETH. ## **Surging User Activity Could Fuel ETH's Long-Term Demand** The Ethereum network recently expanded its capacity, making room for far more transactions. While cheaper fees temporarily reduced the Ethereum network's total fee revenue, the lower costs encouraged far more people to use the blockchain every day. When measured in Ether, quarterly network revenue actually increased from 27,670 ETH in the first quarter to 31,166 ETH in the second quarter. Dollar revenue totals fell mainly because the market price of ETH weakened during the period. Other crypto networks saw similar trends. Solana processed nearly 10 billion user transactions while its fee collection fell to $51 million. Avalanche handled 236 million transactions, up from 58 million a year ago. High transaction activity is usually a sign that token prices can grow over time. ## **33% of the Total ETH Supply Is Being Staked** Staking totals also grew as investors locked up more coins to earn yield. Active staked Ethereum reached a record 40.2 million ETH, representing roughly 33% of the total supply. Large institutions helped drive the surge. Large fund managers staked more ETH, and this removed a lot of Ether coins from public supply. When available supply of a token falls and network usage climbs, even light buying can send prices higher quickly. At the time of writing, Ethereum's price is sitting at $1,888.20. ### Related Stocks - [ETHE.US](https://longbridge.com/en/quote/ETHE.US.md) - [ETHA.US](https://longbridge.com/en/quote/ETHA.US.md) - [EZET.US](https://longbridge.com/en/quote/EZET.US.md) - [CETH.US](https://longbridge.com/en/quote/CETH.US.md) - [EETH.US](https://longbridge.com/en/quote/EETH.US.md) - [QETH.US](https://longbridge.com/en/quote/QETH.US.md) - [FETH.US](https://longbridge.com/en/quote/FETH.US.md) - [ETH.US](https://longbridge.com/en/quote/ETH.US.md) - [ETHV.US](https://longbridge.com/en/quote/ETHV.US.md) - [ETHW.US](https://longbridge.com/en/quote/ETHW.US.md) - [BTF.US](https://longbridge.com/en/quote/BTF.US.md) - [ETHT.US](https://longbridge.com/en/quote/ETHT.US.md) - [ETHU.US](https://longbridge.com/en/quote/ETHU.US.md) - [ETU.US](https://longbridge.com/en/quote/ETU.US.md) - [ETHD.US](https://longbridge.com/en/quote/ETHD.US.md) - [ETQ.US](https://longbridge.com/en/quote/ETQ.US.md) - [SETH.US](https://longbridge.com/en/quote/SETH.US.md) - [YETH.US](https://longbridge.com/en/quote/YETH.US.md) - [ETHHKD.VAHK](https://longbridge.com/en/quote/ETHHKD.VAHK.md) - [ETHUSD.VAHK](https://longbridge.com/en/quote/ETHUSD.VAHK.md) ## Related News & Research - [Ethereum: Glamsterdam upgrade lands - Aug 2026](https://longbridge.com/en/news/294720883.md) - [Pendle: Enables deposits into Alchemix Mix-Yield Tokens - 31 Jul 2026](https://longbridge.com/en/news/294441787.md) - [Flag Ship Acquisition Targets AI Compute, Aircraft Engines for Cash Flow](https://longbridge.com/en/news/294852890.md) - [Coincheck Group publishes presentation on Japan crypto regulatory roadmap, FIEA shift and potential 20% retail tax](https://longbridge.com/en/news/295128315.md) - [Bybit Launches New DCA Challenge with Up to 55,000 USDT in Rewards for BTC, ETH and XAUT Auto-Investing](https://longbridge.com/en/news/294195061.md)