Ethereum News Today: Smart Contract Platforms Outperform Altcoins With 142% Average Return

Web3 activity remains stable, with approximately 24 million daily users interacting with decentralized applications in Q2 2025, but the underlying sector dynamics are shifting. While crypto gaming continues to lead with over 20% market share in user activity, DeFi's dominance has waned, slipping from over 26% to under 19%. Meanwhile, AI and social DApps are gaining traction, with platforms like Farcaster and Virtuals Protocol (VIRTUAL) attracting increasing engagement. However, these categories have not yet translated into strong token performance [1].

DeFi remains a significant force in the Web3 ecosystem, generating over 240 million weekly transactions—more than any other category—despite a declining user base. Institutional interest in DeFi is growing, as reflected in a 150% rise in total value locked (TVL) since January 2024, reaching $137 billion. This increase is driven by larger, more concentrated liquidity pools and participation from institutional players, including partnerships with traditional finance entities like Cantor Fitzgerald. The trend suggests a shift from retail-driven participation to capital-efficient models optimized for institutional capital [1].

Despite DeFi's transactional dominance, Ethereum gas usage data highlights a different picture. DeFi now accounts for only 11% of Ethereum's gas consumption, with the "Other" category—encompassing real-world asset (RWA) tokenization, DePIN, and AI-based protocols—surpassing 58% of total usage. This shift indicates that emerging sectors are gaining computational and economic weight on the Ethereum network [1].

RWA, in particular, is showing strong growth, with the total value of tokenized real-world assets rising from $15.8 billion in January 2024 to $25.4 billion as of Q2 2025. This expansion has drawn in over 346,250 tokenholders, signaling growing interest in tangible assets within the crypto ecosystem [1].

In terms of price performance, smart contract platform coins have outperformed other categories. The top 10 smart contract platform coins saw an average unweighted return of 142% year-over-year, led by HBAR (+360%) and XLM (+334%). DeFi tokens also delivered strong returns, averaging 77% YoY, with Curve DAO (CRV) and Pendle (PENDLE) leading at 308% and 110%, respectively. RWA tokens followed closely, with an average gain of 65%, driven by XDC (+237%) and OUSG (+137%) [1].

In contrast, narrative-driven sectors like AI and DePIN have lagged. The top 10 AI-focused tokens are down 25% YoY, with only Bittensor (TAO) showing a 34% increase. DePIN tokens, despite their strong conceptual appeal, have averaged around 10% growth, with JasmyCoin (JASMY) and Aethir (ATH) at +72% and +39%, respectively. Gaming tokens are also mixed, with most posting losses, except for SuperVerse (SUPER), which surged 750% in the last 12 months [1].

The divergence between hype and performance underscores a broader trend in the Web3 market: institutionalization and utility-driven growth are outpacing speculative narratives. As adoption deepens and infrastructure matures, the gap between narrative and performance may narrow. However, for now, investor confidence is concentrated in foundational and yield-focused sectors, reflecting a demand for tangible value and scalability within the decentralized economy [1].

Source: [1] Time for a Web3 reality check: Which altcoin sectors are really delivering? (https://cointelegraph.com/news/time-for-a-web3-reality-check-which-altcoin-sectors-are-really-delivering?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)