In the past twelve months, Ethereum has solidified its status as the premier blockchain network, amassing an extraordinary **$2.728 billion** in fee income, as reported by Lookonchain. This achievement highlights Ethereum’s supremacy in the blockchain domain, serving as the primary choice for decentralized applications and smart contracts. The substantial fee income reflects the intense activity and demand for Ethereum’s offerings, propelled by sectors like decentralized finance and non-fungible tokens.
During the first quarter of 2024, Ethereum disclosed a robust revenue of **$365 million**, marking a remarkable 155% surge in year-on-year revenue. The fees collected from user transactions alone hit a milestone of **$1.17 billion** in Q1, registering an 80% increase from the preceding quarter.
Bitcoin, the trailblazer in blockchain technology, secured the second spot with a noteworthy **$1.302 billion** in fee revenue. Known mainly as a digital asset and a means of transaction, Bitcoin’s significant fee revenue underscores its persistent relevance in the crypto realm. Notably, the introduction of Bitcoin Ordinals and Runes has led to a surge in transaction fees in 2024, with Runes accounting for nearly 68% of Bitcoin transactions post-halving.
Tron follows suit with a fee revenue of **$459.39 million**. Solana, acclaimed for its swift transactions and minimal fees, accrued **$241.29 million** in fee revenue. Other notable mentions include Binance Smart Chain, Avalanche, and zkSync Era, with revenues of **$176.56 million**, **$68.83 million**, and **$59.77 million** respectively. Additionally, Optimism and Polygon have made commendable progress, generating **$40.4 million** and **$23.91 million** in fee revenue, contributing to Ethereum’s ecosystem by enhancing scalability and reducing transaction costs through layer 2 solutions.
Spot Ether ETFs are poised for a significant influx, potentially reaching **$20 billion** within their inaugural year, as per Steno Research’s projections. The report also forecasts that Ether’s price could soar to a minimum of **$6,500** by year’s end, driven by the anticipated inflows into spot ETFs and other favorable market dynamics. Conversely, Andrew Kang from Mechanism Capital suggests that Ether’s price might plummet to around **$2,400** following the debut of spot ETFs, citing lesser institutional interest in Ether compared to Bitcoin and the limited appeal of converting Ether into ETFs. Kang anticipates that spot Ether ETFs will attract about 15% of the flows that spot Bitcoin ETFs have seen, aligning with Bloomberg analysts Eric Balchunas and James Seyffart’s estimates of 10-20%.
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