Ethereum’s Q2 On-Chain Yield Hits Record Low as Layer 2s Reshape Ecosystem Economics

Ethereum once relied on mainnet transaction fees to generate network revenue, but Layer 2 scaling has lowered transaction costs and diverted users and fees, gradually reshaping the ecosystem’s economics. The DeFi Report said the decline in yield underscores that ETH’s value no longer depends solely on mainnet revenue and must also be assessed through the ecosystem’s total asset base and institutional demand.

Ethereum’s on-chain yield fell to a record low of 2.68% in the second quarter of 2025, according to The DeFi Report. Total assets across the ecosystem nevertheless rose 22% during the same period, surpassing $316.2 billion. As Layer 2 activity continues to grow, increased institutional allocations to ETH have become a key force offsetting declining mainnet revenue and supporting the asset’s fundamentals.