In 2024, Ethereum emerged as the highest-earning blockchain network, generating nearly three times the revenue of its Layer-1 competitor, Solana. According to a January 21 report by CoinGecko, Ethereum led fee revenue, collecting $2.48 billion. Tron followed in second place with $2.15 billion, while Bitcoin secured the third spot with $922 million in fees. Despite the meme coin frenzy, Solana ranked fourth, generating $755 million in fee revenue.
Ethereum’s 2024 fee earnings represented a 3% increase compared to the $2.41 billion collected in 2023, solidifying its position as the leading blockchain for revenue generation. A CoinGecko research analyst noted that Ethereum maintained its leadership in fee earnings despite the Dencun upgrade in March 2024, which reduced Layer-2 transaction costs and prompted ongoing user migration from the Layer-1 chain to its Layer-2 scaling solutions. Ethereum’s resilient fee earnings contrasted with the price performance of ETH, which fell short of expectations last year.
Tron, Bitcoin, and Solana’s Performance
CoinGecko’s data indicated that a total of $6.60 billion in fees was collected across 21 Layer-1 protocols in 2024, with Layer-2 blockchains contributing an additional $294 million. Tron experienced a significant surge in fee earnings, recording a 116.7% increase from $922.08 million in 2023 to $2.15 billion in 2024. The Bitcoin network also saw a 16% growth in annual fee revenue compared to the previous year.
The most dramatic increase came from Solana, which reported a staggering 2,838% jump in annual fees, from $25 million in 2023 to $750 million in 2024. This explosive growth was driven by the memecoin boom, which also pushed Solana’s network to a record 100 million active wallets in October 2024.
Impact of the Dencun Upgrade on Ethereum
The Ethereum blockchain successfully conducted the Dencun upgrade in March, aimed at reducing transaction fees for Layer-2 networks. Following this upgrade, crypto analysts expressed concerns that it could negatively impact mainnet revenue along with the ETH price. Despite these concerns, Ethereum reported strong financial performance in early 2024. A CoinGecko report revealed that the blockchain earned $1.17 billion in fees during Q1 2024, nearly half of its total earnings for the previous year. The report highlighted that this was Ethereum’s highest earning quarter in the last two years, driven by increased on-chain activity amid widespread airdrop programs.
Internal Changes in the Ethereum Foundation
Amidst these financial developments, internal turbulence surfaced within the Ethereum Foundation. On January 18, Ethereum co-founder Vitalik Buterin announced significant leadership changes to improve communication between the foundation and the broader ecosystem.
In summary, despite undergoing the Dencun upgrade, Ethereum demonstrated remarkable resilience in fee revenue generation in 2024, securing its position as the top blockchain network. The impressive performance of Tron and Solana, coupled with the steady growth of Bitcoin, underscores the dynamic nature of the blockchain industry. As these networks continue to evolve, the focus remains on innovation, scalability, and user engagement in the ever-changing landscape of decentralized finance.
