L1 blockchains dominate crypto fee generation
In the last month, Ethereum topped the chart by amassing approximately $180 million in fees among the leading twenty protocols, as revealed by the latest figures from Token Terminal.
The crypto intelligence firm highlighted on June 17 that Ethereum significantly outperformed other blockchain technologies, which mainly included layer-1 networks and DeFi systems, with the presence of only one layer-2 network among the top 20. Base, the blockchain developed by Coinbase, was at the bottom of the list with $6 million in fees for the timeframe.
Post the Ethereum Dencun upgrade in March, there was a notable decrease in layer-2 fees.
Ethereum, Tron, and Bitcoin Lead the Pack
According to the report, Ethereum, Tron, Bitcoin, and Lido were the only ones to cross the $100 million mark in fees over the past 30 days. The report further detailed that Uniswap DAO was the frontrunner among decentralized exchanges in terms of fees, whereas Uniswap Labs found itself at the lower end in this category.
In the realm of decentralized stablecoin suppliers, MakerDAO and Ethena were at the top, with Aave emerging as the dominant figure in the lending space, having a considerable lead over the second-ranked Morpho. Notably, the analysis did not cover Tether or Circle as their fee generation occurs off the blockchain network.
The report shed light on revenue being derived from the protocol's percentage rate applied to the fees. It pointed out that Bitcoin and Uniswap DAO have no take rate, while Ethereum operates at an approximate rate of 80%.
Ethereum's profitability is attributed to its revenue generation from transactional fee burning and lower token rewards to validators, in contrast to Bitcoin, which, although it provides no direct revenue to BTC holders, offers significant token rewards to miners.
The potential launch of spot Ether ETFs next month could significantly enhance Ethereum's ecosystem in terms of adoption and growth by classifying the asset as a commodity, potentially extending to other alternative coins.
