Ethereum remained the highest-earning blockchain in 2024, generating $2.48 billion in fees, a 3% increase from the $2.41 billion collected in 2023, according to a CoinGecko report published on January 21, 2025. This growth comes despite the Dencun upgrade, which was expected to reduce mainnet transaction fees by enhancing Layer 2 (L2) scaling solutions.Ethereum's Resilient Fee Growth Amid Market ChallengesThe report highlights that Ethereum’s strong fee earnings contrast with the underperformance of Ether (ETH) price, which failed to meet market expectations throughout 2024. CoinGecko research analyst Lim Yu Qian stated:"Ethereum has continued to lead in fee earnings despite the Dencun upgrade, which reduced L2 transaction costs and led to user migration from Layer 1 to Layer 2 networks."In Q1 2024, Ethereum collected $1.17 billion in fees, nearly half of its annual earnings, driven by increased on-chain activity and widespread airdrop programs. This marked the blockchain's highest-earning quarter in the past two years.Comparison with Other BlockchainsEthereum's dominance in fee earnings remains unchallenged, followed by:Tron (TRX): Earned $2.15 billion, reflecting a 116.7% year-over-year increase, driven by rising network adoption and DeFi activity.Bitcoin (BTC): Generated $922 million, up 16% year-over-year, fueled by increased adoption and the effects of Ordinals inscriptions.Solana (SOL): Experienced the most significant surge, with a 2,838% increase, from $25 million in 2023 to $750 million in 2024, largely attributed to the memecoin boom and the network reaching a record 100 million active wallets in October 2024.In total, Layer 1 blockchains amassed $6.60 billion in fees, while Layer 2 solutions generated a modest $294 million, reinforcing Ethereum’s leading position.Ethereum Foundation Leadership Shake-UpEthereum’s growth trajectory has not been without challenges. On January 18, 2025, co-founder Vitalik Buterin announced significant changes to the Ethereum Foundation’s leadership, aimed at improving communication between the Foundation and the broader ecosystem of developers and users.However, tensions within the community escalated after Ethereum core developer Eric Conner resigned on January 21, citing concerns over Buterin’s consolidation of authority and lack of decentralization within the Foundation.Despite market volatility and evolving user preferences, Ethereum's ability to maintain high fee earnings underlines its continued dominance in the blockchain space. As L2 solutions become more efficient and accessible, Ethereum’s mainnet remains a lucrative hub for DeFi and enterprise applications.With the upcoming network upgrades and expanding institutional interest, Ethereum’s position as the leading blockchain in terms of fee earnings appears secure for the foreseeable future, according to Cointelegraph.
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