Ethereum, the largest blockchain network in terms of transaction volume, experienced significant growth in the first quarter of 2024, showing positive indicators in various financial metrics.
Based on data from Coin98 Analytics, Ethereum saw its earnings triple in Q1 2024 compared to the previous quarter, reaching $369 million. This represents a 210% increase compared to the same period in 2023 when earnings were $119 million.
In terms of fees and revenues, Ethereum witnessed a 79% and 85% increase quarter-over-quarter in Q1 2024, respectively. The data reveals that Ethereum generated $1.2 billion in revenue from transaction fees during this period, marking a 155% growth compared to Q1 of the previous year.
Overall, Ethereum’s total revenue in Q1 2024 amounted to $1 billion, a significant surge of 186% compared to the previous year’s $385 million.
Ethereum’s success in Q1 2024 coincided with the cryptocurrency reaching near all-time high prices in March, resulting in a substantial increase in transaction costs on the network.
As Ethereum surpassed $3,000 in late February, some users reported paying over $100 in ETH transaction fees during peak times. By March 1, the average gas fee for a swap transaction was around $79, while some users experienced estimated ETH swap fees as high as $400 in late February.
Despite the high fees faced by Ethereum network users, the network exhibited notable growth in usage during Q1 2024. According to Coin98, total Ethereum transactions increased in the first quarter, with a quarter-over-quarter surge of 8.4% to surpass 107 million transactions.
Furthermore, the total value locked in the Ethereum decentralized finance ecosystem witnessed an 86% increase quarter-over-quarter, reaching $55.9 billion.
In terms of stablecoins, Tether (USDT) remained the largest Ethereum-based stablecoin by market capitalization in Q1 2024, experiencing a 14% increase in market value compared to the previous quarter. Its main competitor, USDC (USDC), saw a 23% growth in ERC-20 market value quarter-over-quarter.
According to a recent analysis by Matrixport, the first quarter of 2024 was favorable for various assets, including those in traditional finance. The Nasdaq returned up to 10%, and Nvidia demonstrated returns of 81%.
Commodities also performed well, with oil and gold returning 19% and 11% respectively. While United States bonds experienced a decline in sales, Bitcoin and Ethereum displayed increases of 57% and 45% respectively in the first quarter.
In other news, SBF has been sentenced to 25 years in prison, Fidelity is considering ETH staking, and Coinbase faced a legal defeat. This is the summary of Hodler’s Digest from March 24-30.