Research: Layer-one, DeFi slumped in H1 as RWA and prediction markets grew

Binance Research said the on-chain market broadly contracted in the first half of 2026, with DeFi total value locked falling 38% and the market capitalization of major layer-one blockchains dropping 42%. According to the report, total DeFi TVL declined by $43.4 billion, while the market capitalization of the six largest layer-one chains fell by $246.5 billion. Ethereum’s average gas fees dropped 75% from a year earlier after a higher gas limit, and transaction volume rose 50%, but network revenue is estimated to decline 53% on an annual basis. The report added that layer-two user activity also fell 77% between January and June. It added that, in contrast to the DeFi slowdown, the first half also saw rapid growth in the real-world asset market led by tokenized stocks, along with higher prediction-market trading volume tied to the World Cup.