In the first quarter of 2024, the Ethereum network achieved a net profit of $369.11 million, marking a substantial increase of 209.5% compared to the same period last year. Coin98 analytics revealed that Ethereum’s transaction fees surged by 155%, totaling $1.17 billion, surpassing the $1 billion revenue milestone, while expenses reached nearly $666 million.
During this period, Ethereum witnessed a surge in daily active users, exceeding 404,000, and a daily transaction volume of 1.18 million. The total number of transactions on the network soared to over 107 million, accompanied by the addition of 263.8 million unique addresses. Daily transaction fees averaged 508.77 Ethereum (ETH).
Additionally, Coin98 Analytics reported the creation of over 4.8 million NFTs on Ethereum during the first quarter of 2024, with the USDT stablecoin maintaining its position as the largest Ethereum-based stablecoin by market capitalization.
Furthermore, DefiLlama data indicated a rise in the total value locked (TVL) on the Ethereum network, reaching $55.89 billion, although it declined to $50 billion at the time of reporting. This increase in TVL contributed to the company’s heightened profits, driven by escalating fees on the Ethereum network. The surge in transaction costs, particularly for ERC-20 tokens like meme coins, underscored the urgent need for scalable solutions to accommodate growing demand while ensuring user retention.
Notably, the March Dencun update addressed some commission-related issues, including reductions in fees for Ethereum layer 2 solutions, alleviating concerns regarding transaction costs.