In 2024, Ethereum emerged as the leading blockchain in terms of fee revenue, surpassing previous earnings despite a significant upgrade earlier in the year aimed at reducing transaction costs. The network generated $2.48 billion in fees, outperforming its closest competitor, Tron, which accrued $2.15 billion in the same period. Bitcoin followed in third place, with earnings of $922 million.
This marks a slight increase from Ethereum ’s $2.41 billion in fee revenues from 2023, indicating that the platform has maintained its prominent position in the market. Analysts observed that despite the Dencun upgrade in March 2024, which was designed to decrease Layer 2 transaction costs and facilitate user migration, Ethereum ’s fee income continued to grow. However, this growth in revenue contrasts with the underwhelming price performance of Ether (ETH) last year.
Ethereum ’s financial success was evident early in the year, with the first quarter alone accounting for $1.17 billion, nearly half of the total annual fees. This was the highest quarterly earning the network had seen in two years, driven by a surge in on-chain activity and widespread airdrop events. The report suggests that this continued performance may not be sustainable in light of the broader implications of the Dencun upgrade on mainnet revenues.
Meanwhile, other blockchains also experienced notable increases in fee revenues. Tron reported a staggering 116.7% rise compared to 2023, while Bitcoin ’s fees grew by 16%. Additionally, Solana experienced a remarkable surge of 2,838%, with revenues climbing from $25 million in 2023 to $750 million in 2024, attributed largely to the memecoin phenomenon that also saw its active wallets reach 100 million in October.
Overall, across 21 Layer 1 blockchains, a total of $6.60 billion in fees was collected alongside $294 million from Layer 2 platforms, highlighting a dynamic and evolving landscape in cryptocurrency transactions.
