Ethereum Fee Revenue Plummets by Half as Blockspace Costs Fall

Ethereum network fee revenue plummeted by 51% year-on-year to around $64 million in the second quarter, despite rising transaction activity and record staking levels.

A new report from Bitwise found that cheaper and more abundant blockspace led to lower fees, rather than a decline in interest from users. In ETH terms, revenue actually rose for the first time in over a year, measured at 31,166 ETH in the second quarter, up from 27,670 ETH in the previous quarter.

The divergence between revenue and activity is the key takeaway from the report. While fees fell, usage climbed, with Ethereum processing 203.9 million transactions in the quarter, a significant increase from 121.1 million a year earlier. Throughput also rose to 26 transactions per second, up from 15.