TechFlow News, July 03, The Ethereum Q2 2026 update released by The DeFi Report shows that Ethereum's network revenue for the quarter rebounded slightly quarter-over-quarter, but still declined significantly year-over-year, with on-chain real yield, L1 economic activity, DeFi activity, and Layer 2 participation overall continuing to weaken. The report pointed out that as user activity continues to migrate to Layer 2, competition for Ethereum mainnet block space decreased, leading to weakened priority fee and MEV capture capabilities.
Total on-chain yield annualized for the second quarter was 2.68%, one of the lowest levels in history, of which about 94% came from issuance yield, reflecting insufficient native activity on the mainnet currently. The report believes that although Ethereum's underlying user experience and throughput capacity are improving, it has not yet translated into effective value capture at the mainnet level.
