- Ethereum takes first place as the highest-earning blockchain
- There is always a close relationship between fees and transactions
The latest blockchain revenue statistics are out and the Ethereum network has come out on top, despite increasing competition. Moreover, a clear lead has confirmed that it is still the most dominant blockchain at the moment.
According to the report, Ethereum collected an impressive $2.7 billion in fee revenue over the past 12 months. The network is ahead of second-place Bitcoin with a figure of $1.43 billion. This is a testament to an impressive lead, which underlines how far ahead it is of the competition.
Ethereum’s dominance in terms of fees is a sign that it remains the most preferred smart contract network in 2024. Its first-mover advantage on this front has allowed it to remain the network of choice for most dapps and users.
This may also indicate that Layer 2 networks have done a good job of addressing the shortcomings of Ethereum’s mainnet.
What causes Ethereum fees to increase?
After exploring the Ethereum daily fee graph 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 collected by the network in a single day in the past 12 months was $38.42 million on March 5.
Source: CryptoQuant
Ethereum has been on a strong bullish trend in recent weeks, and this spike occurred near ETH’s current 2024 high. This aligns with observations that demand for ETH within its ecosystem tends to increase during a bull market, indicating robust utility. This also occurred during one of the market’s most volatile days.
Similarly, we also recently observed the second-highest spike in Ethereum fees during the height of the last market crash. On August 5, fees peaked at $15.97 million. This was the same day that the market was characterized by high volatility as bulls came out to cancel the bearish trend.
The lowest amount of network fees recorded in a single day was recorded on July 7, at $1.19 million.
Fees go hand in hand with transactions, and here’s how Ethereum network transactions have fared: The highest daily transaction count seen in the past 12 months peaked at 1.96 million transactions on June 14. Meanwhile, the lowest figure 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.
