Ethereum Dominates Blockchain Fee Revenue
Ethereum is the most lucrative blockchain by the fee revenue, which is the amount of money the network can make by performing actions, such as the payment of tokens on a blockchain network. The research results released by the company Lookonchain found that the network had received an enormous $2.728 billion in the last year, thus it was the top blockchain in the metric. In other words, the result confirms that the platform is at the forefront of the use-case for Ethereum in both the Dapps space and Smart Contracts. This is the platform where all the Dapps projects are built on top of smart contracts and are the ones to be used.
The strong fee revenue indicates a situation of high usage and demand and that is because it comes from different sectors like decentralized finance (DeFi) and non-fungible tokens (NFTs). Ethereum has also seen a promising first quarter due to a good income of $365 million contribution from the efficient performance on a blockchain in this period of time, especially when it comes to interface and protocoling, the major part being successfully executed in the best way possible.
Quarter-by-Quarter Growth
Ethereum is finnacially most improved due to the user transaction-based fee revenue reaching a significant amount of $1.17 billion in Q1, which is an 80% increase from the previous quarter. This growth continued to demonstrate the process of the application of the network as well as its advance in diffusing private payments with the help of the network effect.
Bitcoin Earns $1.3 Billion in Fee Revenue
Blockchain’s initial player, Bitcoin, is the lighter major contender with a fee revenue of $1.302 billion. Bitcoin, which is largely used as a good store of value and means of exchange, still remains as a largely used cryptocurrency in the market, showed its significant fee incomes.
Bitcoin Ordinals, the tool making messages blockchains displayable, have had the most impact on transaction fees in 2024. Furthermore, the software titled “Runes”, enabling the user to specify individual units of his account and then connect up to a maximum of 68% of transactions on Bitcoin after the process, and whose later rise of fees in 2024 has completely originated in the halving.
Other Notable Blockchains
Tron is the only one that manages to surpass Bitcoin recording $459.39 million for the fee revenue. In the fourth position is Solana whose unique characters like lightning-fast transactions and low fees have shined on them generating $241.29 million. Binance Smart Chain (BSC), Avalanche, and zkSync Era are the other three notable ones, which have brought through their fee revenues of $176.56 million, $68.83 million, and $59.77 million respectively.
Presently, $40.4 million and $23.91 million were earned by Positivity and Polygon respectively via their fee revenue. These projects effectively boost the Ethereum network by providing a faster and cheaper alternative for transactions using layer 2 technologies.
Ethereum ETFs Could See $15-20B in Inflows
If the investor base of spot Ethereum ETFs rises abruptly, then the money inflows could total at least $20 billion in the first year, which is a very encouragingly high figure, as based on the Steno Research report. The report, in addition to the $6,500 long-range minimum the revered cryptocurrency is presented with by the year’s close, already allows to predict $20 billion worth of the ETF inflows the spot ETFs will be receiving and other positive market factors.
The analysts reported that the launching of the spot Ether ETFs might actually cause the asset price to drop substantially to $2,400. Andrew Kang, a founder and partner at Mechanism Capital, also mentioned the possibility. Ether has limited support from institutional clients and less demand for its spot holdings to become ETFs, this is the main reason highlighted by Kang.
Contrary to the flows proportions in comparison with spot Bitcoin ETFs, Kang reckons approximately 15% of the flows from the spot Bitcoin ETFs are to be shifted to spot Ether ETFs. The margins implied by Bloomberg ETF analysts Eric Balchunas and James Seyffart are between 10 and 20%. They predict that spot Ether ETFs, at best, may appropriate 10-20% of the flows.
