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Highlights
- Ethereum's high fee revenue comes despite the network seeing a substantial decrease in gas fees this year.
- Ethereum Layer-2 activity hitting all-time highs is the major contributor to this revenue spike.
- This indicates Ethereum's effective scalability efforts, with L2 solutions playing a crucial role.
The Ethereum blockchain network has once again occupied the first spot when it comes to the network fee generated over the last year. With a network fee generated of $2.7 billion over the last year, Ethereum leads its immediate opponent Bitcoin by a margin of 2x.
Ethereum Holds A Lions Share In Blockchain Fee Revenue
As per the latest data provided by LookonChain, Ethereum leads the rest of the blockchain in annual fee revenue. while Ethereum generated 2.728 billion in network fees over the last year, Bitcoin can second at $1.302 billion. This shows that Ethereum has rewarded its network validators twice in comparison to that of Bitcoin miners.
The Tron blockchain network came at the third spot generating $459 million in network fees while Solana stood fourth ($241.29 million) followed by the Binance smart chain (BSC) at the fifth position.
These numbers are even more exemplary considering the fact that the Ethereum gas fee has touched a four-year low following the Dencun upgrade earlier this year. By the end of June, the Ethereum gas fee dropped to 7.32 Gwei. this is nearly a 50% drop in comparison to the 14.91 Gwei gas fee as of January 1.
On the other hand, the high demand for Bitcoin Ordinals and NFTs led to a strong surge in Bitcoin fees earlier this year.
Also Read: What to Expect for Ethereum Price in July Based on Historical Trends
Layer-2 Solutions Make A Thriving ETH Ecosystem
The ETH ecosystem is currently flourishing as the Layer-2 activity continues to touch fresh all-time highs. As per on-chain indicators, the Layer-2 solutions, designed to improve Ethereum’s scalability are witnessing unprecedented usage. Co-founder Vitalik Buterin recently showered praise for the rapid growth in Ethereum L2 solutions like Optimism and Base.
The increasing adoption of L2 solutions underscores their essential role in alleviating network traffic and lowering gas prices. The combined impact of falling gas prices and rising L2 activity suggests that Ethereum is effectively addressing scalability issues.
This development is very crucial to the growth of the ETH ecosystem as the period of high demand has historically resulted in exorbitant high fees and network congestion in the past. Layer-2 solutions have played a crucial role by offloading transactions while reducing the burden on the main chain.
In the recent development, Conbaise’s Base platform has emerged as the leading and most used Ethereum L2 outperforming the likes of Optimism and Arbitrum.
Also Read: Ethereum Network to Get Major Boost With SSF Roadmap, Says Vitalik Buterin
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