Solana and Ethereum staking yields decline amid rising participation

Staking participation for both Ethereum and Solana reached significant levels in the third quarter, though annual yields for both assets have experienced a decline. According to the Bitwise Staking Report for Q3 2026, Ethereum staking reached a historic high of 43.8 million ETH, representing 35.9% of the total supply. However, the gross annualized staking yield dropped to 2.63% from 2.81% in the second quarter.

Solana also saw a decrease in gross staking yields, falling from 6.38% in the second quarter to approximately 6%. In both networks, the majority of staking rewards—over 90% for both—continue to be derived from new token issuance rather than network transaction fees.

Market analysts note that staking demand often exhibits an anti-cyclical pattern, where demand increases during market weakness, thereby driving yields lower. For institutional investors, the focus is shifting from whether to stake to how to manage liquidity, as unstaking processes can take weeks. Companies like Coinbase and Payward are developing tools to address these liquidity concerns through financing and liquid staking tokens.