New data continues to support the growing adoption and popularity of the Ethereum blockchain. Per data of Token Terminal (TT), a crypto data aggregator, the Ethereum blockchain has generated approximately $10.7 billion in transaction fees in the past 365 days.
Ethereum fee generation has accelerated over the past year
The figure points to a staggering increase in demand for block space on the world’s largest smart contract blockchain. For context, Ethereum has generated approximately $13.3 billion in transaction fees over its lifetime. The $10.7 billion generated in the past year represents more than 80.4% of all fees generated.
According to the data aggregator’s Twitter handle, there are still dramatic changes in Ethereum’s fee revenue as more adoption comes to Ethereum.
And the story of the “settlement layer” is still a meme. What will the fee income be like when hundreds of chains settle transactions and pay fees to ethereum? TT mused.
The question points to predictions from analysts, including ARK Invest and Bloomberg, that Ethereum could potentially become the smoothing layer of global finance, while Bitcoin could become the de facto storehouse of value assets.
Ethereum is already heading into this future. Right now, Ethereum plays host to the widest range of decentralized applications in the blockchain industry.
Ethereum tackles stumbling blocks to its bright future
The Ethereum network is seriously working to become even more attractive to investors, developers and users alike. Having identified several challenges to its value proposition, including high transaction costs, slow settlement times, and in terms of environmental impact, the blockchain is on track to solve them.
Moving to a proof-of-stake blockchain – likely later this year – will make Ethereum more environmentally friendly and put it in a position to introduce more changes that will bring scalability.
In the meantime, the introduction of EIP-1559 has reduced the new issuance of ETH tokens. Data from Glassnode shows that fee revenues for Ethereum miners have fallen over the past three months. And even then, most of their revenue came from earning the block reward and not transaction fees.
The price of ETH has shown a positive response to the bullish development and adoption path that the blockchain is following. ETH is up 31.3% in the past month and is trading at $3,460 at the time of writing. According to Arthur Hayes, co-founder of BitMex crypto exchange, ETH should reach a price of $10,000 by the end of the year.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication is not responsible for your personal financial loss.
About the author
Olivia’s interests span the cryptocurrency and NFT and DeFi industries. She remains as fascinated with cryptocurrencies today as she was in 2017 when she first started reading about them. She is actively looking for the latest Crypto related stories. When she’s not writing, she tends to her pet Chihuahua or prepares vegan recipes. Reach me at [email protected]
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