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- Ethereum takes the top spot as the most profitable blockchain
- There remains a close relationship between fees and transactions.
The latest statistics on blockchain revenue and Ethereum The network has emerged as the leader, despite increasing competition. Not only that, but a clear progression has confirmed that it is still the most dominant blockchain network at the moment.
According to a reportEthereum has collected $2.7 billion in fee revenue over the past 12 months. The network was ahead of Bitcoin, which came in second with $1.43 billion. This is an impressive lead, highlighting how far ahead it is of its competitors.
Ethereum’s dominant position in terms of fees is a sign that it will remain the preferred smart contract network in 2024. Its advantage of being first on this front has allowed it to remain the preferred network for most decentralized applications and users.
This may also indicate that layer 2 networks have been doing a good job of solving the shortcomings of the Ethereum mainnet.
What causes Ethereum fees to rise?
After exploring the daily Ethereum fees chart over a 12-month period, it is clear that Ethereum fees are directly correlated to the price of ETH.
For example, the highest amount of fees the network has received in a single day in the past 12 months was $38.42 million on March 5.
Source: CryptoQuant
Ethereum has been in a strong uptrend in the past few weeks, and this surge occurred near the current 2024 high. This is in line with observations that demand for Ethereum within its ecosystem tends to rise during a bull market, indicating strong interest. It also occurred on one of the most volatile days in the market.
Similarly, we also observed the second highest spike in Ethereum fees recently at the peak of the recent market crash. Fees peaked at $15.97 million on August 5. This was the same day the market was extremely volatile, with bulls coming out to cancel the downtrend.
The lowest network fee amount ever recorded in a single day was on July 7 at $1.19 million.
Fees go hand in hand with transactions and here’s how. Ethereum The network’s transactions have performed well – the highest daily number of transactions observed over the past 12 months peaked at 1.96 million transactions on June 14. Meanwhile, the lowest number for the same period was just over 863,000 transactions on September 23.
Source: CryptoQuant
Unlike the correlation with its price, transactions did not show a significant correlation with fees. This is largely because the highest fees were observed on days when ETH prices were high.
