Ethereum network experienced significant growth in the first quarter of 2024, with earnings reaching $369 million, representing a 210% increase year-over-year. Transaction fees generated $1.2 billion in revenue, a 155% increase from the previous year, with total revenue reaching $1 billion, up 186% from Q1 2023. The surge in revenue coincided with Ethereum approaching all-time high prices, resulting in increased transaction costs on the network, with users reporting paying over $100 in ETH fees during peak times. Despite high fees, Ethereum saw a surge in network usage, with over 107 million transactions conducted in Q1, a quarter-over-quarter increase of 8.4%.
In addition to income statement metrics, network usage metrics also showed positive trends in Q1 2024, with over 107 million transactions and almost 9.7 million new addresses created during the period. The total value locked in the Ethereum DeFi ecosystem rose by 86% quarter-over-quarter, reaching $55.9 billion. Tether and USDC, two major stablecoins on the Ethereum network, experienced market capitalization growth in Q1 2024, with Tether maintaining its position as the largest stablecoin by market capitalization. The Ethereum network also surpassed one million validators, with approximately 32 million Ether staked within the network, highlighting significant commitment to the PoS consensus mechanism.
Recent data from the Dune Analytics dashboard revealed that the Ethereum network hit the milestone of one million validators on March 28, with 32 million ETH staked, representing around 26% of the total supply. Among the staking options available, approximately 30% of ETH is staked through Lido, an Ethereum staking pool that allows users with smaller amounts of ETH to participate in the staking process. Crypto investment firm Bitwise submitted an application to the SEC to launch an Ethereum spot ETF, joining other industry giants like BlackRock, Grayscale, and VanEck who have also filed proposals for Ethereum spot ETFs. This move reflects the growing interest from traditional financial firms in offering such products and the race to introduce the first Ethereum spot ETF.
The growth in Ethereum’s revenue and network usage in Q1 2024 demonstrates the continued popularity and adoption of the Ethereum network. Despite high transaction fees, users are willing to pay for the benefits of using the network, such as access to DeFi applications and the ability to stake Ether. The rise in validators and the amount of Ether staked also indicate strong community support for Ethereum’s PoS consensus mechanism. The interest from financial firms in launching Ethereum spot ETFs further validates Ethereum’s position as a leading blockchain platform and highlights the increasing integration of cryptocurrencies into traditional finance. By leveraging the network’s capabilities and expanding its reach through new financial products, Ethereum is poised for continued growth and success in the evolving digital economy.
