Ethereum Sets 2024 Record for Transaction Fees
A January 22, 2025 report by CoinGecko detailed the performance of several blockchains in 2024.
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Ethereum became the top earner in 2024, generating more revenue from transaction fees than in 2023. This occurred despite a March network upgrade designed to reduce network costs.
Ethereum generated a record-breaking $2.48 billion in transaction fees in 2024, surpassing all other blockchains. Tron followed in second place with $2.15 billion, while Bitcoin secured the third spot with $922 million, according to a January 21st report from CoinGecko.
This impressive performance highlights Ethereum's continued dominance in blockchain revenue, despite the March 2024 Shanghai upgrade, which aimed to reduce transaction costs on Layer 2 networks and encourage user migration from the Ethereum mainnet (Layer 1).
CoinGecko analysts noted a stark contrast between Ethereum's robust fee income and the underwhelming performance of the ETH price throughout the year.
Analysts posit that the March Dencun upgrade, designed to decrease transaction costs on L2 solutions, might inadvertently diminish the mainnet's revenue stream. Consequently, this could exert downward pressure on the market price of ETH.
CoinGecko's data reveals that Ethereum's first-quarter 2024 earnings of $1.17 billion constituted nearly half of its total fee revenue for the preceding year. This marked a two-year high, primarily attributed to heightened network activity spurred by substantial token airdrops.
Blockchain Fee Dynamics in 2024
L1s generated a combined $6.6 billion in transaction fees in 2024, according to CoinGecko data. This figure dwarfs the $294 million generated by L2s during the same period.
Tron saw a significant 116.7% year-over-year increase in fee revenue, climbing from $922.08 million in 2023. Bitcoin also experienced growth, with a 16% increase in annual fee income.
However, Solana emerged as the standout performer, achieving a staggering 2838% surge in fee revenue, reaching $750 million in 2024 from just $25 million in 2023. This explosive growth is attributed to the meteoric rise of memecoins on the Solana network, culminating in a record-breaking 100 million active wallets in October.
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