Ethereum's total on-chain yield for Q2 2026 has dropped to a historical low of 2.68%, according to the latest DeFi Report. Despite a slight quarter-over-quarter rebound in network revenue, the year-over-year figures show a significant decline. The report highlights a continued weakening in L1 economic activity, DeFi engagement, and Layer 2 participation. As user activity increasingly shifts to Layer 2 solutions, competition for Ethereum mainnet block space has decreased. This migration has led to reduced priority fees and diminished MEV capture capabilities, contributing to the overall decline in on-chain yield.