Ethereum Fees Increase in 2024 Despite Cost-Effective Denkun Update: CoinGecko
Ethereum was the top-grossing blockchain last year, with more payouts due in 2023 despite spending cuts on the network in March.
Ethereum raised $2.48 billion in 2024, the most of any blockchain, followed by Tron, which brought in $2.15 billion. According to CoinGecko's January 21st report, Bitcoin (BTC) earned $922 million in third place.
Ethereum payments last year saw a 3 percent increase from $2.41 billion in 2023.
“This March 2024 Denko upgrade shows that Ethereum continues to lead in payment revenue despite the reduction of L2 transaction costs and the continued migration of users from L1 chain to L2 scale solutions,” wrote CoinGecko research analyst Lim Yu Qian.
All of the top-grossing blockchains for 2024 were Layer 1, with Ethereum leading the pack. Source: CoinGecko
“Ethereum's insurmountable fee revenue also comes in contrast to ETH's price performance, which fell short of expectations last year,” she added.
Crypto analysts say Ethereum's March Denkun update – which favors reduced transaction fees for Layer 2 networks to scale blockchain – could weaken mainnet revenue, negatively impacting the price of its native token, Ether (ETH).
CoinGecko found that Ethereum will earn $1.17 billion in the first quarter of 2024, which is almost half of last year's total revenue.
“This was Ethereum's highest-grossing quarter in the past two years, driven by increased onchain activity amid broader weather programs,” Lim said.
Related: Ethereum Foundation Internal Conflict and Falling DApp Volumes Put Cloud on ETH Price
Ethereum founder Vitalik Buterin on January 18 announced significant changes to the leadership of the Ethereum Foundation to improve the relationship between the foundation and developers in the ecosystem.
Ethereum core developer Eric Conner Buterin announced his departure from the community on January 21 after rejecting calls for a leadership crackdown and claiming sole authority over the Ethereum Foundation.
In total, $6.60 billion in fees were collected across 21 layer 1 protocols, while the layer 2 blockchain generated $294 million in revenue.
Source: CoinGecko
Tron saw a significant increase in fee revenue in 2023, up 116.7% from $922.08 million in 2023.
Bitcoin has increased its annual payout by 16% in 2024 compared to 2023.
Meanwhile, Solana, with a 2,838% increase in its annual fee income, saw a very significant increase, from 25 million 2023 to $ 750 million 2024. This came off the back of the memecoin craze, which also pushed the Solana network. A record of 100 million bags of revenue in October.
CoinGecko's report examined the gas payments earned by blockchain from January 1, 2023 to December 31, 2024.
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