Ethereum platform currently holds over $51 billion in Total Value Locked (TVL), $124 billion in stablecoins, and supports 152 Layer-2 solutions and 67 DEXs, among numerous dApps and DeFi protocols.
In 2024, Ethereum generated the highest on-chain revenue at $2.5 billion, exceeding Tron’s $2.1 billion and Bitcoin’s $923 million.
CoinGecko data confirms Tron earned $2.1 billion in fees, but Ethereum surpassed this.
Ethereum Led in On-Chain Revenue for 2024
Ethereum achieved this revenue growth despite a 99% fee reduction in March 2024.
Gas fees fell below 1 Gwei by September 2024, benefiting users and Layer-2 solutions like Polygon, Arbitrum, Base, and Uniswap.
Issues like fee volatility, the temporary “Blob” system, and ERC-20 fee payments are pending resolution, potentially with the upcoming Pectra Upgrade.
Ethereum Has Largest DeFi Ecosystem
Ethereum’s DeFi ecosystem includes over $51 billion TVL and $126 billion in stablecoin reserves directly on its blockchain.
DeFi Llama data shows the wider EVM ecosystem, with over 50 chains on Ethereum, holds approximately another $10 billion TVL.
EVM-compatible blockchains like Tron and Berachain add a further $15 billion in TVL.
Successful Pectra upgrades could attract 75% of this additional $25 billion TVL, potentially adding $17.5 billion to Ethereum’s ecosystem.
The Pectra upgrade is anticipated around late April to early May 2025.
Ethereum Underpins Numerous Blockchains
Ethereum supports numerous blockchains on its EVM, which rely on it for security. This includes projects like Base, Arbitrum, Optimism, Linea, and Shibarium.
L2 Beat reports over 152 layer-2 and layer-3 projects on Ethereum, including 63 rollups and 84 validiums/optimiums.
These Layer-2 projects pay batch fees, counted as blob fees, to Ethereum.
Ethereum hosts at least 67 DEXs, including Uniswap and Curve Finance, providing another revenue source.
Stablecoins Predominantly Use Ethereum
Stablecoins depend on blockchains with significant stablecoin reserves for liquidity.
Ethereum is the primary blockchain for stablecoin transactions.
EtherScan data indicates Tether‘s USDT contributes 5% to 10% of Ethereum’s total fees.
Stablecoin fees provide consistent revenue, even during bearish market phases, as investors often hold stablecoins when exiting volatile positions.
No Direct Competitor for Ethereum
Ethereum maintains a central position in crypto.
Ethereum’s diverse revenue streams for validators make it less susceptible to revenue drops seen with chains relying on single trends, unlike Solana’s meme coin-driven phase.
Comparisons to altcoins like XRP, Cardano, Chainlink, and Tron suggest no current direct competitor to Ethereum exists.
Even during Solana‘s memecoin surge, memecoin trading fees had minimal impact on Ethereum’s revenue.
Also Read: Ethereum’s Buterin Proposes Enhanced Security Model Amidst Market Turbulence
