Ethereum, the largest blockchain network in terms of transaction volume, experienced significant growth in the first quarter of 2024, with positive indicators across various financial metrics.
According to data from Coin98 Analytics, Ethereum’s earnings in Q1 2024 tripled compared to the previous quarter, reaching $369 million. This amount represents a 210% increase compared to the same period in 2023, where earnings were $119 million.
In Q1 2024, Ethereum’s fees and revenues increased by 79% and 85% respectively, compared to the previous quarter. The data shows that Ethereum generated $1.2 billion in revenue from transaction fees during this period, which is a 155% increase compared to the first quarter of the previous year.
The total revenue for Ethereum 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, leading to a sharp 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. On March 1, the average gas fee for a swap transaction was approximately $79, while some users reported estimated ETH swap fees reaching as high as $400 in late February.
Despite the high fees experienced by Ethereum network users, the network witnessed significant 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 increased by 86% compared to the previous quarter, reaching $55.9 billion.
In Q1 2024, Tether (USDT) remained the largest Ethereum-based stablecoin by market capitalization, experiencing a 14% increase in market value compared to the previous quarter. Its main competitor, USDC (USDC), saw a 23% increase in ERC-20 market value during the same period.
A recent analysis by Matrixport revealed that the first quarter of 2024 was strong for various assets, including those in traditional finance. The Nasdaq index returned up to 10%, while Nvidia showed returns of 81%. Commodities such as oil and gold performed well, with returns of 19% and 11% respectively. Despite the sell-off of United States bonds, Bitcoin and Ethereum experienced returns 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 court loss. This is summarized in the latest edition of Hodler’s Digest, covering the period from March 24 to 30.