Ethereum Sees Impressive Growth in Q1, Earnings Triple
The first quarter of 2024 has been a period of significant growth for the Ethereum network, with positive performance seen in various aspects of its income statement, including fees and overall revenue.
According to data from Coin98 Analytics, Ethereum’s earnings in Q1 2024 have tripled compared to the previous quarter, reaching an impressive $369 million. This marks a substantial 210% increase year-over-year from $119 million in the first quarter of 2023.
In addition, Ethereum’s fees and revenues have risen by 79% and 85% quarter-over-quarter, respectively. Transaction fees alone have generated $1.2 billion in revenue for Ethereum during this period, representing a significant 155% increase compared to the first quarter of the previous year.
Overall, Ethereum’s total revenue in Q1 2024 amounted to $1 billion, surging by an impressive 186% compared to the same period in 2023 when it reached $385 million.
The success of Ethereum in the first quarter of 2024 coincided with the cryptocurrency reaching all-time high prices in March, which resulted in a substantial increase in transaction costs on the network. Users reported paying over $100 in ETH transaction fees during peak times when Ethereum surpassed $3,000 in late February.
Despite the high transaction fees, Ethereum has demonstrated significant growth in network usage throughout Q1 2024. There has been a notable increase in total Ethereum transactions, with a quarter-over-quarter surge of 8.4% to surpass 107 million transactions. The total value locked in the Ethereum decentralized finance (DeFi) ecosystem has also risen by 86% quarter-over-quarter, reaching $55.9 billion.
Among Ethereum-based stablecoins, Tether has maintained its position as the largest by market capitalization in Q1 2024, witnessing a 14% increase in market value since the previous quarter. Its main competitor, USDC, has also experienced a quarter-over-quarter increase of 23% in the ERC-20 market value.
In another milestone, the Ethereum network has surpassed one million validators, with approximately 32 million Ether staked within the network, worth around $114 billion. This represents approximately 26% of the total supply and highlights the substantial commitment to Ethereum’s proof-of-stake (PoS) consensus mechanism. About 30% of the ETH is staked through Lido, an Ethereum staking pool that allows users with smaller amounts of ETH to pool their assets and participate in the staking process.
The growing interest from traditional financial firms to offer Ethereum spot ETFs is evident, with crypto investment firm Bitwise recently submitting an application to the SEC to launch a spot Ethereum ETF. Bitwise joins other industry giants like BlackRock, Grayscale, and VanEck, who have also filed proposals with the SEC to launch their own Ethereum spot ETFs.
Overall, Ethereum’s strong performance in Q1 2024 indicates its growing popularity and potential for further growth in the future.
