Despite Ethereum undergoing the Dencun Upgrade in March last year to reduce transaction costs, its fee revenue did not decrease but increased, maintaining its position at the top of the on-chain revenue rankings. Additionally, both Tron and Solana saw significant revenue increases, making them focal points of this year.

Ethereum's Transaction Fee Revenue Rises to $2.48 Billion

According to a CoinGecko report on 1/21, Ethereum's transaction fee revenue in 2024 reached $2.48 billion, marking a 3% increase from the $2.41 billion earned in 2023, making it the highest-earning blockchain of the year.

Despite the upgrade lowering transaction costs, Ethereum sustained revenue growth thanks to robust on-chain activity and user demand. This growth starkly contrasts with the underwhelming price performance of Ethereum (ETH).

Tron, Bitcoin Rank Second and Third

Apart from Ethereum, Tron emerged as the blockchain with the second-highest fee revenue, amassing $2.15 billion in 2024, an increase of 116.7% year-over-year. Bitcoin followed in third place, with its transaction fees growing to $922 million, up by 16% from the previous year.

The report also highlighted Solana's remarkable performance, with its fee revenue surging by 2,838%, from $25 million in 2023 to $750 million in 2024, primarily driven by the meme coin craze which led to Solana's active wallets exceeding 100 million in October of last year.

Post-Upgrade Challenges for Ethereum: Revenue and Governance

Ethereum recorded its highest quarterly revenue in two years during Q1 2024, reaching $1.17 billion, largely due to increased on-chain activity from numerous airdrop initiatives. However, the Dencun Upgrade also raised concerns about mainnet revenue.

On 1/18, Ethereum co-founder Vitalik Buterin announced significant changes to the foundation's leadership structure aimed at enhancing communication with ecosystem developers. However, on 1/21, core Ethereum developer Eric Conner announced his departure from Ethereum, citing his opposition to Vitalik's restructuring plans, thereby sparking controversy.

L1 Transaction Fee Revenue Exceeds $6.6 Billion

Overall, in 2024, the total transaction fee revenue from 21 L1 blockchains reached $6.6 billion, with L2 blockchains contributing an additional $294 million. With the surge in on-chain user activities and technological innovations, transaction fees have become a crucial metric for measuring blockchain activity.

The future balance between transaction fee revenue and user cost, influenced by technical upgrades and ecosystem expansions of Ethereum and other blockchains, will be pivotal in shaping market development.

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