Ethereum Sees 80% Increase in Fees and Revenue in Q1, Profits Triple Compared to Previous Quarter
The first quarter of 2024 has been a period of significant growth for the Ethereum network, as it has achieved positive results in various financial metrics, including fees and overall revenue.
According to data provided by 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 compared to Q1 2023, when earnings were at $119 million.
Moreover, Ethereum’s fees and revenues have experienced a 79% and 85% increase 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.
In terms of overall revenue, Ethereum has reached $1 billion in Q1 2024, which is a remarkable 186% surge compared to the same period in 2023 when revenue amounted to $385 million.
The success of Ethereum in Q1 2024 can be attributed to the cryptocurrency’s approach to all-time high prices in March, which resulted in a substantial increase in transaction costs on the network. As Ethereum surpassed $3,000 in late February, users reported paying over $100 in ETH transaction fees during peak times. By March 1, the average gas fee for swap transactions reached approximately $79, with some users even reporting fees as high as $400 in late February.
Despite the high transaction fees, Ethereum’s network usage has demonstrated significant growth throughout Q1 2024. Coin98 has reported a notable increase in total Ethereum transactions, with a quarter-over-quarter surge of 8.4%, surpassing 107 million transactions.
Additionally, the total value locked in the Ethereum decentralized finance (DeFi) ecosystem has 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.
One notable achievement for the Ethereum network is the surpassing of 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 significant commitment to Ethereum’s proof-of-stake (PoS) consensus mechanism.
Among the staking options available, 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.
In other news, Bitwise, a crypto investment firm, has submitted an application to the SEC to launch a spot Ethereum ETF. This move positions Bitwise as one of the contenders in the race to introduce the first Ethereum spot ETF, following the successful launch of Bitcoin spot ETFs earlier this year. This aligns with the growing interest from traditional financial firms, such as BlackRock, Grayscale, and VanEck, who have also filed proposals with the SEC to launch their own Ethereum spot ETFs.
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