Ethereum posts $1.2 billion in transaction fee earnings during Q1 2024, a 155% increase compared to the same quarter last year.
Ethereum (ETH), the largest blockchain network by transaction volume showed significant growth during Q1 2024, showing positive signs in most of its income statement metrics.
According to information from Coin98 Analytics, Ethereum tripled its earnings in the first quarter of this year compared to the first quarter of the previous year, achieving $369 million. That amount represents a 210% year-over-year increase from $119 million in last year’s first quarter.
Increased commissions and revenue
Ethereum’s commissions and revenue in Q1 2024 increased 79% and 85% quarter-over-quarter, correspondingly.According to the information, Ethereum accumulated $1.2 billion in revenue thanks to transaction fees.
Ethereum’s success in the first quarter of this year came against a backdrop of the cryptocurrency approaching record prices, which triggered a massive increase in transaction costs on the network.
As Ethereum surpassed $3,000 in late February, some users noticed and reported paying more than $100 in ETH transaction fees at peak times.
In March, the average fee for an exchange transaction was around $79, with some users reporting expected ETH exchange fees as high as $400 at the end of February.
Network growth and development
Despite Ethereum network users facing massive fees, there was evidence of significant growth in network usage during the first quarter of this year
According to Coin98, Ethereum’s total transactions in Q1 2024 increased by 8.4% quarter-over-quarter, surpassing 107 million transactions.
In addition, the overall value locked up in Ethereum’s decentralized financial ecosystem grew 86% quarter-over-quarter to $55.9 billion.
Tether held its own as the largest Ethereum-based stablecoin, or ERC-20, by market capitalization in Q1 2024, adding 14% in market value since last quarter. Its largest competitor, USDC, increased its ERC-20 market value nearly 23% quarter-over-quarter.
According to recent analysis by Matrixport, during the first quarter of 2024, most assets including traditional financials, performed well. The Nasdaq returned as much as 10%, with Nvidia returning 81%.
Commodities, meanwhile, performed strongly, with oil and gold returning 19% and 11%, respectively. Meanwhile, U.S. bonds continued to sell off, Bitcoin and Ethereum experienced rises of 57% and 45%, in the first quarter.
