Ethereum Faces Revenue Shift as Layer 1 Fees Drop
Ethereum's revenue from Layer 1 (L1) transactions is undergoing a major transformation due to recent reductions in gas fees.
As decentralized exchanges (DEXs) and NFT transactions increasingly migrate to rollup chains, Ethereum’s direct fee income has significantly declined.
Recent data reveals that Ethereum, traditionally a major fee generator, now brings in only $7.2 million weekly.
The reduced fees are impacting validators’ earnings, which had previously been buoyed by high activity periods. Currently, staking rewards have decreased to around 2.05%, down from earlier estimates.
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To compensate, Ethereum validators are turning to Maximum Extractable Value (MEV) strategies, which involve optimizing transaction placement within blocks to maximize revenue. This approach has helped increase overall returns to approximately 2.89%.
Despite these changes, Ethereum remains crucial for rollup chains and maintains a robust user base with over 330,000 active wallets daily.
Stablecoin transactions, such as those involving Tether (USDT), continue to drive activity on the network. While direct L1 fees are down, Ethereum’s foundational role and liquidity sustain its significance in the crypto ecosystem.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
