DeFi
L1 Blockchains and DeFi Protocols Dominate Crypto Fee Generation
Ethereum generated the most fees among the top twenty protocols over the past 30 days, generating around $180 million, according to new data from Token Terminal.
On June 17, the crypto analytics platform reported that Ethereum was well ahead of other blockchains, dominated by layer 1 chains and DeFi protocols, with only one layer 2 blockchain in the top 20. The Coinbase blockchain generated the least amount. fees for the period at $6 million.
“Given that activity on Base has exceeded that of Ethereum L1, this is a sign that L2 scaling is working,” he said.
Layer 2 fees fell sharply after the Ethereum Dencun upgrade in March.
Ethereum, Tron and Bitcoin coming soon
Only Ethereum, Tron, Bitcoin and Lido generated more than $100 million in fees over the past 30 days, he reported. Further findings showed that Uniswap DAO led in fees among decentralized exchanges, while Uniswap Labs generated the least in the same category.
MakerDAO and Ethena dominated the decentralized stablecoin issuer category, and Aave was the clear market leader in the lending category, with a significant gap between them and second-place Morpho. The data did not include Tether or Circle, as they earn their fees and revenue off-chain.
The results indicate that revenue was calculated based on the participation rate that the protocol applies to fees. Bitcoin and Uniswap DAO currently have a 0% participation rate, while Ethereum tends to have a participation rate of around 80%, he noted.
Ethereum remains much more profitable because the network earns revenue from transaction fees and pays relatively small token incentives to validators. Bitcoin generates no income for BTC holders but pays substantial token incentives to minors.
Additionally, the Ethereum ecosystem could benefit from a major boost in adoption and growth if spot Ether ETF are launched next month. This would mean the asset is classified as a commodity, which could be the case for other altcoins.
Daily crypto fees
According to Crypto Fees, Ethereum generated $2.7 million over the past day. However, Bitcoin was just above at $2.9 million. Bitcoin Fees generally increase when there is higher demand on the network from coin minters and ordinal inscriptions.
Uniswap and Aave were third and fourth with $1.4 million and $1 million in daily fees, respectively.
Token Terminal suggested investors pay attention to fees for early-stage protocols that have not yet started to be monetized.