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BNB 
ETH 
SOL Overall contraction in the Ethereum, Layer 2 and DeFi sectors
In the first half of 2026, there was no sector rotation in cryptocurrency market activity, but extensive on-chain contraction, affecting almost every corner of the industry. DeFi's total locked positions (TVL) fell by US$43.4 billion, or 38%; the total market value of the six major Layer 1 blockchains lost US$246.5 billion, or 42%.
Ethereum's marginal holder base has undergone structural changes rather than growth during this period. Spot ETF positions shrank from more than 6 million ETH to 5.2 million ETH. Digital Asset Treasury increased its position from 6 million ETH to 7.7 million ETH. This change reversed the balance between the two types of holders and further widened the gap.
Cheaper Ethereum block space has not translated into stronger revenue. This year, the Internet Gas limit has increased to about 60 million units. The average Gas price is down 75% from 2025, and the number of transactions has increased by approximately 50%. Despite the increase in activity, full-year chain revenue is expected to fall by 53%.
The rate of loss of general Layer 2 network users far exceeds the overall market contraction level. From January to June 2026, the total number of L2 user operations dropped by approximately 77%, while Ethereum itself only dropped by 9% over the same period. This gap suggests that contraction will have a more serious impact on Layer 2 than the base layer.
DeFi TVL fell 38.7% in the first half of 2026, a decline that exceeded the broader market. Active loans in the DeFi agreement fell 38.0% over the same period. April became the most severe month, with several major security incidents occurring. A total of 207 security incidents were recorded across the industry, setting a record for any six-month cycle, resulting in total losses of $972 million.
Solana and BNB Chain show divergence paths in the same downward trend
Solana's network revenue fell sharply while trading patterns remained stable. Monthly income fell from $40 million in January to $14 million in June, a cumulative decline of 64.5% over the six months. Meme still accounts for 25% of Solana's decentralized exchange (DEX) trading volume.
Despite the overall market correction, tokenized stocks have gained a foothold on Solana. As of June 2026, these assets accounted for 4% of Solana DEX trading volume. BNB Chain also became the main trading venue for tokenized stocks during this period. The market value of its tokenized real-world assets (RWA) increased by 107% in the first half of the year. BNB Chain's share of real-world assets on the chain increased, climbing from 9.8% of the total market to 13.5%.
BNB Chain remains the only major Layer 1 network to remain deflationary, with an annualized destruction rate of 5.05%, compared with 0.86% for Ethereum.
Forecasting that the market will be unique in the overall contraction pattern. Monthly nominal transaction volume increased 86% to US$51.6 billion, driven in part by the World Cup. Kalshi and Polymarket together accounted for 92% of total transaction volume in June, and non-sports transaction volume on the two platforms increased by 136% over the same period.
