Intelligence Brief
Ethereum, Solana, and Avalanche recorded higher network activity and lower transaction costs over the past year, even as ETH, SOL, and AVAX each declined by roughly 50% or more, according to Bitwise.
The divergence suggests blockchain usage continued to grow despite a weaker market.
Why It Matters
Price and network adoption are moving in different directions.
While token valuations fell sharply, users continued transacting across major Layer 1 networks at lower costs. That points to infrastructure becoming more efficient, even as market sentiment remained weak.
LATEST: ???? Ethereum, Solana and Avalanche saw rising activity and lower transaction costs over the past year, even as ETH, SOL and AVAX each fell by around 50% or more, according to Bitwise. pic.twitter.com/uFR5zFSCTW
— CoinMarketCap (@CoinMarketCap) July 28, 2026
Key Developments
Ethereum, Solana, and Avalanche all reported increased on-chain activity over the past 12 months.
Transaction fees declined across the three networks, lowering the cost of transfers, DeFi activity, and on-chain applications.
Despite those improvements, the native tokens lost roughly half of their market value during the same period.
Intelligence Assessment
On-chain growth without price appreciation often signals that usage is outpacing investor sentiment.
Lower fees encourage developers and users to remain active during bear markets, allowing networks to continue expanding even when speculative demand fades.
The gap between adoption and valuation may narrow if capital returns to the market. Until then, activity metrics provide a clearer picture of network health than token prices alone.
Risk Assessment
Higher network usage does not guarantee higher token prices.
Much of the activity could come from existing users rather than new capital entering the ecosystem. Competition among Layer 1 networks also remains intense, with each chain competing for liquidity, developers, and institutional adoption.
A prolonged period of weak market conditions could continue to weigh on valuations despite improving fundamentals.
Bottom Line: Ethereum, Solana, and Avalanche are processing more activity at lower cost, even after steep price declines. The data suggests network adoption has remained resilient, but sustained price recovery will likely require fresh capital alongside continued growth in on-chain usage.
