in spite of Dincon After the update, designed to reduce transaction costs, Ethereum’s fee gains increased in 2024, confirming its position at the top among blockchains.
According to a report By CoinGecko Published on January 21, Ethereum posts 3% year-over-year increase, with total profits reaching $2.48 billionand strengthen its position as a leader.
Dencun’s impact on Ethereum fees
the Dincon The update, which was implemented in March 2024, was primarily aimed at reducing transaction fees, especially for Layer 2 (L2), in an effort to make Ethereum more scalable and accessible.
However, contrary to expectations of lower revenues, Ethereum maintained and even increased its gains. According to Lim Yu Qian, an analyst at CoinGecko.
“The result demonstrates the resilience of the network, despite many users switching from backbone (L1) to L2 solutions.”
the Gas fees Not only was Ethereum able to withstand the Dencun effect, it was also strengthened upward On the chain Activity and events such as Airdrop Programs that stimulate network usage. In the first quarter of 2024 alone, Ethereum was raised $1.17 billionwhich represents nearly half of its annual revenue.
Ethereum outperforms in 2024, but other blockchains have shown surprising performance. You seefor example, acquired $2.15 billionAn increase of 116.7% compared to the previous year. BitcoinWhile it maintained third place, it recorded a more contained rise of 16%, with gains of $922 million.
It was the most striking case Solanawhich witnessed a huge increase in 2,838% In fees, it goes up from 25 million dollars In 2023 to 750 million dollars In 2024. This boom is attributed to the popularity of com. memecoinWhich also led to Solana’s superiority 100 million active wallets In October.
Ethereum: Driving Loud?
Despite the gains, Ethereum has had a complicated year. The price of Ethereum The token remained below expectations, also affected by concerns about a potential decline in revenue resulting from the expansion of second language solutions.
Meanwhile, internal tensions within Ethereum Foundation Attracted attention, with co-founder Vitalik Buterin Announcing leadership changes to strengthen coordination between the organization and the developer community.
Moreover, the departure was announced Eric ConnerOne of the main developers of Ethereum has highlighted internal disagreements. Conner criticized Buterin for lacking greater decentralization in the management of the institution.
In 2024, the blockchain fee market will reach a total $6.60 billionOnly from her $294 million It came from second layer networks. This shows that despite the increasing use of scalable solutions, layer 1 networks are still dominant in terms of revenue.
Despite the technical and strategic challenges faced by Ethereum, it has consolidated its position as a leader thanks to its ability to attract users and innovate, even in the context of lower fees.
The future will depend on the network’s ability to balance scalability and decentralization, and maintain a competitive advantage in an increasingly dynamic market.