**[Binance Research: On-Chain Market Contracts in Early 2026, DeFi and Mainstream Blockchain Metrics Decline Significantly]** Deep Tide TechFlow reports that on July 30, Binance's research report revealed that the on-chain market experienced overall contraction in the first half of 2026, rather than capital rotation. The total value locked (TVL) in DeFi across all chains decreased by $43.4 billion, a 38% drop. The total market capitalization of six major Layer 1 blockchains covered in the report fell by $246.5 billion, a 42% decline. Ethereum spot ETF holdings dropped from over 6 million ETH to 5.2 million ETH, while holdings by digital asset reserve companies increased from 6 million ETH to 7.7 million ETH, indicating a shift in marginal holding structures. The report also noted that after Ethereum's Gas limit was raised, the average Gas price decreased by 75% compared to 2025, while transaction volume grew by approximately 50%. However, annual on-chain revenue is still expected to decline by 53%. User activity on Layer 2 general-purpose networks weakened significantly, with user operations dropping by about 77% from January to June 2026. Solana network revenue (REV) fell from $40 million in January to $14 million in June. On the other hand, BNB Chain performed exceptionally well in the tokenized stocks and tokenized real-world assets (RWA) sectors, with its on-chain tokenized RWA market share rising from 9.8% to 13.5% in the first half of the year. The report also mentioned that prediction markets, decentralized exchanges (DEX), lending, and tokenized RWA remain among the few key areas maintaining activity.