Ethereum rakes in $1.17 billion in fees in Q1 of 2024.
The Ethereum network experienced a substantial increase in net profit during the first quarter of 2024, reaching $369.11 million, which is a significant growth of 209.5% compared to the same period last year.
Coin98 analytics revealed that Ethereum’s commission income also soared to $1.17 billion in the first quarter of 2024, marking a 155% surge compared to the previous year. Furthermore, the network’s total revenue surpassed the $1 billion milestone, while expenses rose to approximately $666 million.
Moreover, the Ethereum network witnessed a surge in daily active users, surpassing 404,000, and a daily transaction count of 1.18 million. In the first quarter of 2024 alone, more than 107 million transactions were executed on the network, with an additional 263.8 million unique addresses being added. The daily commission averaged at 508.77 Ethereum (ETH).
Coin98 Analytics also pointed out that Ethereum witnessed the creation of over 4.8 million NFTs during the first three months of 2024. Additionally, the USDT stablecoin remained the largest Ethereum-based stablecoin in terms of market capitalization.
According to DefiLlama, the total value locked (TVL) on the Ethereum network has surged to $55.89 billion, but as of now, it stands at $50 billion.
The company’s profits have surged due to the escalating fees on the Ethereum network. Transaction costs on Ethereum have markedly increased, particularly with the rise of ERC-20 tokens, including meme coins.
The rising transaction costs underscore the urgent need for scalable solutions to accommodate the growing demand without alienating users. The March Dencun update addressed some commission-related issues, such as reducing the size of commissions for Ethereum level 2 solutions.
