A Binance Research report said the on-chain market contracted in the first half of 2026 rather than seeing capital rotate between sectors. Total value locked across DeFi fell by $43.4 billion, a 38% drop, while the combined market capitalization of six major Layer 1 blockchains covered by the report declined by $246.5 billion, or 42%.
The report also pointed to a shift in marginal ownership of Ether. Spot Ethereum ETF holdings fell from more than 6 million ETH to 5.2 million ETH, while holdings by digital asset treasury companies rose from 6 million ETH to 7.7 million ETH. On Ethereum, the average gas price dropped 75% from 2025 levels after the gas limit increase, and transaction count rose about 50%, yet full-year on-chain revenue is still projected to fall 53%.
Activity on general-purpose Layer 2 networks weakened sharply, with user operations down about 77% from January to June 2026. Solana network REV fell from $40 million in January to $14 million in June. By contrast, BNB Chain gained ground in tokenized stocks and tokenized real-world assets, with its share of on-chain tokenized RWA market value rising from 9.8% to 13.5%.
ChainCatcher reported that a Binance Research report found the on-chain market contracted in the first half of 2026 instead of rotating capital across sectors.
According to the report, total value locked across DeFi dropped by $43.4 billion, down 38%. The combined market capitalization of six major Layer 1 blockchains covered in the report fell by $246.5 billion, a 42% decline.
In Ether ownership, spot Ethereum ETF holdings fell from more than 6 million ETH to 5.2 million ETH, while digital asset treasury companies increased holdings from 6 million ETH to 7.7 million ETH, marking a change in marginal holding structure.
The report also said that after Ethereum raised its gas limit, average gas prices fell 75% from 2025 levels and transaction count increased by about 50%, but full-year on-chain revenue is still expected to decline 53%.
User activity on general-purpose Layer 2 networks weakened sharply. From January to June 2026, user operations fell by about 77%. Solana network REV dropped from $40 million in January to $14 million in June.
On the other side, BNB Chain performed strongly in tokenized stocks and tokenized real-world assets. In the first half of the year, its share of on-chain tokenized RWA market value rose from 9.8% to 13.5%. The report added that prediction markets, DEXs, lending, and tokenized RWA remained among the few major areas that stayed active.
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