Ethereum layer-1 network revenue collapses. What's causing it?

Layer-2 monthly active users and daily transaction counts have both doubled since March 2024, according to Token Terminal.

Ethereum layer-1 network revenue has plummeted by 99% since March 2024, despite a dramatic increase in layer-2 monthly users and layer-2 daily transaction costs.

According to data from Token Terminal, network fees hit their highest levels for the year on March 5, 2024, at $35.5 million. The Dencun upgrade—which significantly reduced fees for Ethereum layer-2 transactions—went live on March 13, 2024.

Ethereum network fees in 2024. Source: Token Terminal

Layer-2 monthly active users and daily transaction counts have both doubled since March 2024, according to Token Terminal.
Ethereum layer-1 network revenue has plummeted by 99% since March 2024, despite a dramatic increase in layer-2 monthly users and layer-2 daily transaction costs.According to data from Token Terminal, network fees hit their highest levels for the year on March 5, 2024, at $35.5 million. The Dencun upgrade—which significantly reduced fees for Ethereum layer-2 transactions—went live on March 13, 2024.Ethereum network fees in 2024. Source: Token TerminalRead more