Ethereum, the largest blockchain network in terms of transaction volume, experienced significant growth in the first quarter of 2024, showing positive indicators in various financial measures.
According to data provided by Coin98 Analytics, Ethereum’s earnings tripled in Q1 2024 compared to the previous quarter, reaching $369 million. This figure represents a 210% increase compared to the same period in 2023, when Ethereum earned $119 million.
In terms of fees and revenues, Ethereum saw a 79% and 85% increase, respectively, on a quarter-over-quarter basis in Q1 2024. Transaction fees alone generated $1.2 billion in revenue for Ethereum during this period, a 155% increase compared to the first quarter of the previous year. Overall, Ethereum’s total revenue reached $1 billion in Q1 2024, a staggering 186% surge from the previous year’s $385 million.
Ethereum’s success in Q1 2024 coincided with its cryptocurrency reaching near all-time high prices in March, which led to a significant rise in transaction costs on the network. As Ethereum surpassed $3,000 in late February, some users reported paying over $100 in fees for ETH transactions during peak times. By March 1, the average gas fee for a swap transaction was around $79, with some users reporting fees as high as $400 in late February.
Despite the high fees, Ethereum experienced substantial growth in network usage during Q1 2024. Coin98 data shows that total Ethereum transactions increased by 8.4% compared to the previous quarter, surpassing 107 million transactions.
Furthermore, the total value locked in the Ethereum decentralized finance ecosystem rose by 86% in Q1 2024, reaching $55.9 billion.
Tether (USDT) remained the largest stablecoin based on the Ethereum network, commonly known as ERC-20, in Q1 2024. Its market capitalization increased by 14% compared to the previous quarter. USDC, its major competitor, also saw a 23% increase in ERC-20 market value on a quarter-over-quarter basis.
An analysis by Matrixport revealed that the first quarter of 2024 was positive for various assets, including those in traditional finance. The Nasdaq index returned up to 10%, while Nvidia showed an impressive 81% return. Commodities such as oil and gold also performed well, with returns of 19% and 11% respectively. Despite the sell-off of United States bonds, Bitcoin and Ethereum saw returns of 57% and 45% respectively in Q1.