Ethereum has topped the charts in annual fee revenue, generating more than twice the fees of the Bitcoin blockchain over the same period. According to a recent post by blockchain analytics platform Lookonchain, Ethereum earned $2.728 billion in fees last year, while Bitcoin earned $1.302 billion.
Here are the top 10 chains by 1-year fee revenue.#Ethereum earns a fee of $2.728B per year, #Bitcoin earns a fee of $1.302B per year, and #TronNetwork earns a fee of $459.39M per year. pic.twitter.com/ixAiP9g8JA
— Lookonchain (@lookonchain) July 3, 2024
Meanwhile, Tron Network secured third place with $459.39 million in network fees, followed by Solana with $241.29 million, and Binance Smart Chain (BSC) with $176.56 million.
Ethereum’s clear lead in generated fees suggests that the decentralized application platform rewarded its network validators more than twice as much as miners on the Bitcoin blockchain.
This performance is particularly notable given that fees on the Ethereum network dropped to a four-year low following the Dencun upgrade earlier this year. As of the end of June, the Ethereum gas fee fell to 7.32 Gwei, roughly a 50% decrease from 14.91 Gwei on January 1st.
However, Layer-2 protocols are thriving in the Ethereum ecosystem, with network activity reaching new highs. Vitalik Buterin, Ethereum’s co-founder, recently acknowledged the rapid growth of notable Ethereum L2 solutions like Optimism and Base. Analysts attribute the surge in Ethereum network fees to this increased L2 activity.
The growing adoption of L2 protocols highlights their role in mitigating network congestion and lowering gas fees. Other chains included in Lookonchain’s top ten list of network fee revenue include Avalanche, zkSync Era, Optimism, and Polygon.
Ethereum’s dominance in fee revenue, even with decreased gas fees, is a testament to the robust ecosystem and the uptick in network adoption. The rise of Layer-2 solutions further strengthens Ethereum’s position.