In the first quarter of 2024, the Ethereum network saw a substantial increase in net profit, reaching $369.11 million, marking a significant growth of 209.5% compared to the same period last year. Coin98 analytics reported that Ethereum’s commission income soared to $1.17 billion, a 155% increase from the first quarter of 2023. Total revenue surpassed the $1 billion mark, while expenses climbed to nearly $666 million.
The number of daily active users on the network surged to over 404,000, with daily transactions reaching 1.18 million. Throughout the first quarter of 2024, the network processed over 107 million transactions and added 263.8 million new unique addresses. The average daily commission stood at 508.77 Ethereum (ETH).
Coin98 Analytics also highlighted that over 4.8 million NFTs were minted on Ethereum in the first three months of 2024, with the USDT stablecoin maintaining its position as the largest Ethereum-based stablecoin by market capitalization.
According to DefiLlama, the total value locked (TVL) on the Ethereum network surged to $55.89 billion before dropping to $50 billion at the time of reporting.
The company’s profits saw a boost due to the escalating fees on the Ethereum network. Transaction costs on Ethereum have significantly increased, particularly with the surge in ERC-20 tokens, including meme coins.
The escalating transaction costs underscore the urgent need for scalable solutions to accommodate the growing demand without alienating users. The March Dencun update addressed some commission-related issues, such as reducing the fees for Ethereum level 2 solutions multiple times.
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