Crypto: Ethereum Breaks All Records, Over $370 Million in Profits!

Ethereum shows spectacular growth in the first quarter of 2024, tripling its profits and raking in $1.2 billion in revenue from transaction fees. The network seems to be riding the wave despite high usage costs for crypto users.

Explosion of Revenue and Transaction Fees on Ethereum

Ethereum, the second-largest crypto by market capitalization, achieved remarkable performance in the first quarter of 2024. According to Coin98 Analytics, Ethereum’s profits have tripled compared to the first quarter of 2023, rising from $119 million to $369 million.

This significant growth is primarily due to an increase in transaction fees, which generated $1.2 billion in revenue for Ethereum for the quarter, an increase of 155% compared to the previous year.

In total, Ethereum’s revenue reached $1 billion in the first quarter of 2024, up by 186% year-over-year. This exceptional performance coincides with a surge in the price of ETH in March, which caused a spike in transaction costs. In early March, the average fees for an exchange hit $79, with peaks of $400 at the end of February for some users.

Strong Growth in Network Use and DeFi

Despite the high transaction costs, the use of the Ethereum network continued to grow in the first quarter. The total number of transactions increased by 8.4% compared to the previous quarter, exceeding 107 million.

Furthermore, the total value locked (TVL) in decentralized finance (DeFi) on Ethereum jumped by 86% in three months, reaching $55.9 billion. The main stablecoins based on Ethereum, like Tether and USDC, also saw their market value increase by 14% and 23% respectively over the quarter.

Overall, the first quarter of 2024 was favorable for most assets, including those in traditional finance, as evidenced by the performance of the Nasdaq (+10%) and Nvidia (+81%).

In summary, Ethereum had an exceptional first quarter of 2024, driven by an explosion of its revenue, strong growth in its usage, and the continuous development of its crypto ecosystem. While Ethereum continues to attract more users and capital, the issue of scalability and transaction costs remains a major challenge for its future development.