Ethereum continues to lead the decentralized application (dApp) sector by a wide margin, generating $1.021 billion in DApp fee revenue in the first quarter of 2025, according to data from Token Terminal. The figure marks Ethereum’s most profitable quarter to date, further reinforcing its position as the top blockchain for decentralized finance (DeFi), NFTs, and Web3 applications.Ethereum’s Q1 Performance Highlights Network UtilityTotal DApp Fees (Q1 2025): $1.021 billionEthereum remains the undisputed leader, commanding the lion’s share of revenue from on-chain applications such as Uniswap, Aave, OpenSea, and various GameFi and social platforms.Trailing behind:Base (Coinbase Layer-2): $193 millionArbitrum (Layer-2 Rollup): $73.8 millionAvalanche C-Chain: $27.68 millionThese figures underscore Ethereum’s dominance not just in value locked, but in real economic activity, with high user engagement and transaction volumes translating directly into network fees.Ethereum vs. Competitors: The Revenue Gap WidensWhile Base continues to gain traction, largely supported by Coinbase integrations, its Q1 fee revenue is less than 20% of Ethereum’s, despite aggressive ecosystem growth. Arbitrum, the third-largest by fee revenue, maintains a strong developer base but faces challenges in scaling usage to Ethereum’s levels.Avalanche’s C-Chain ranks fifth, with under $30 million in dApp fees, signaling slower traction despite new partnerships in gaming and DeFi.Why Ethereum Continues to DominateEthereum’s continued lead is driven by:A mature developer ecosystemDominance in DeFi protocols and NFT marketplacesBroad institutional support and infrastructure integrationsA robust and secure Layer-1 foundation despite high gas feesAs Ethereum Layer-2 scaling solutions like Optimism, zkSync, and Base continue to mature, overall usage is increasing—but mainnet Ethereum still captures the majority of fee-based economic activity, according to Bitcoin.com