© 2026 The DeFi Report. All Rights Reserved.
Hello readers,
We published The ETH Report and The SOL Report Q2-25 editions today.
At The DeFi Report, we believe that public blockchains represent the most powerful data source in financial history. Transparent. Real-time. Verifiable.
But accessing that data — and making sense of it — is still surprisingly difficult. The tools and sources are fragmented. The metrics are inconsistent. And reliable benchmarks are rare.
That’s why we built The ETH Report and The SOL Report.
Today’s Q2-25 release is the culmination of years of work solving our own challenges as investors — creating and analyzing metrics, validating sources, assessing fair value and correlations, partnering with the best data teams in crypto, and producing our own proprietary data.
And now we’re sharing it all with you, for free.
Our goal is simple:
To provide clear, consistent, and objective performance data that helps investors understand how value flows through crypto networks and to tokenholders.
Free of noise and hype.
If you care about revenue, yield, token economics, network usage, and real onchain value creation (how it accrues to you as a tokenholder) — this report (and the 10 dashboards that come with it) is for you.
Today, I’m pleased to roll out the Q2-25 edition of The ETH Report (and The SOL Report).
Disclaimer: Views expressed are the author’s personal views and should not be relied upon as investment advice.
The DeFi Report is powered by BIT Digital, the leading global platform for high-performance computing infrastructure and one of the largest ETH treasury companies. NASDAQ: BTBT
Let’s go.
The ETH Report is designed for tokenholders and long-term investors. It’s intentionally a data-only report (free of analyst opinion), while covering quarter-to-quarter and year-to-year performance results.
Roughly 80% of the data is sourced from The DeFi Report via Dune Analytics. We are providing access to this data via our dashboard links, which are available via the report document (download links below), and throughout the report in the chart citations.
Additional data is sourced from our friends at Glassnode, Token Terminal, Artemis, DeFillama, Blockworks Research, rwa.xyz, and strategicethreserve.xyz.
All data is as of 6.30.25.
In addition to the report, we will be conducting “Q2 Earnings Calls” on Tuesday, July 15th at 11am EST (Ethereum) and 1pm EST (Solana) with Bankless. These will be live Twitter and YouTube streams that are designed to mimic traditional earnings calls with prepared performance remarks, ecosystem leadership remarks, and analyst questions for leadership (please bear with us as we get started 😀).
Call links are below.
We will also be releasing a podcast episode with Bankless dropping on Thursday, where we go deeper into the performance metrics while sharing analyst opinions and forward-looking projections.
Ethereum’s second quarter was marked by a decline in protocol revenue and onchain fee activity, primarily driven by network upgrades and user migration to Layer 2s. The implementation of the Pectra Upgrade on May 7th enhanced the user experience, with the trade-off for ETH holders coming in the form of lower onchain economics during the quarter.
Real Economic Value dropped 53% and Real Onchain Yield fell 28%.
Despite the drop in fees, Total Onchain Yield fell just 5% due to reliance on issuance, which made up for 88% of validator rewards during the quarter. This came at the cost of higher net dilution, which rose to .73% (annualized), driven by a 2% increase in issuance and a 55% drop in ETH burned compared to Q1.
On the Network side, onchain fundamentals were mixed. Total Value Locked rose 33% and ETH staked increased 4%. Meanwhile, DeFi Velocity, Revenue per User, and Stablecoin Volumes declined on L1 as a result of lower onchain activity when compared to Q1.
Layer 2 activity expanded during Q2. Transactions were up 13%, with Unichain and Base driving most of the growth. With that said, combined L2 fees dropped 44% in Q2 due to the aforementioned Pectra Upgrade, which has elevated the user experience across the network.
Despite lower monetization for ETH validators and stakers, ETH showed signs of strengthening as a store of value. ETH in ETFs rose 20% during the quarter, with assets held in treasury surging to 1.3 million ETH. Furthermore, ETH on centralized exchanges declined 7% while ETH in smart contracts fell 4% — suggesting capital rotation into ETFs and staking.
Operating Performance
Network Fundamentals
Stablecoins
Efficiency KPIs
Token Economics
DeFi
Layer 2 Ecosystem
Layer 2 Stablecoins
Store of Value
Fair Value
Correlations
You can download The ETH Report here and The SOL Report here (contents are largely the same, except no L2s).
[In case you’re wondering, yes, I need your email to download the reports so that we can track the submissions. We think it’s a fair trade-off for the time, skill, and resources that went into producing the reports and 10+ data dashboards. As always, we will never use your email to do anything but send you high-quality research, data, and market insights.]
Links to the supporting data dashboards are available on Page 2 and throughout the reports.
We recommend that you click the data citation under each chart to explore unique data dashboards covering each section of the report.
Finally, mark your calendar to join us for the first-ever crypto “earnings calls” tomorrow:
The ETH Report (7/15 11am EST): https://www.youtube.com/live/ZltS0nOXjxk
The SOL Report (7/15 1pm EST): https://www.youtube.com/live/9GY1m8asS7I
If you’re an analyst, we’d love to have you submit a question for next quarter’s “earnings calls.” Reply to this email or DM me on Twitter/LinkedIn if you’re interested.
We truly value your feedback. Please feel free to respond to this email to share what you like/don’t like about the reports and “earnings calls” so that we can make it better next quarter.
Take a Report.
And Stay Curious.
Disclaimer: Individuals have unique circumstances, goals, and risk tolerances, so you should consult a certified investment professional and/or do your own diligence before making investment decisions. The author is not an investment advisor and may hold positions in the assets covered. Certified professionals can provide individualized investment advice tailored to your unique situation. This research report is for general educational purposes only, is not individualized, and as such should not be construed as investment advice. The content contained in the report is derived from both publicly available information as well as proprietary data sources. All information presented and sources are believed to be reliable as of the date first published. Any opinions expressed in the report are based on the information cited herein as of the date of the publication. Although The DeFi Report and the author believe the information presented is substantially accurate in all material respects and does not omit to state material facts necessary to make the statements herein not misleading, all information and materials in the report are provided on an “as is” and “as available” basis, without warranty or condition of any kind either expressed or implied.