Solana (SOL) recorded $4.15 billion in net losses in 2025 while Ethereum (ETH) lost $1.62 billion, according to analysis from crypto data provider Kaiko, which found that validator inflation costs far exceeded fee revenue across most major Layer 1 blockchains. Despite Ethereum generating $260 million in revenue and Solana producing $170 million in fees, only Tron (TRX) recorded positive earnings after bringing in $624 million in revenue that exceeded its token issuance costs.
The findings highlight how token inflation, new tokens issued to validators and stakers, acts as a major economic cost that can outweigh network revenue, effectively diluting token holders.
Validator Inflation Outpaces Blockchain Revenue
Kaiko’s analysis evaluates blockchain earnings by comparing annual fee revenue against the market value of newly issued tokens distributed to validators or stakers.
While transaction fees represent the income generated from network activity, the issuance of new tokens functions as a cost to holders because it increases supply and dilutes existing ownership.
Using that framework, the report found that inflation costs across many Layer 1 networks exceed revenue by multiples ranging from seven to 25 times.
