Ethereum is the most active platform ranked by the fees generated in the last six months, Token Terminal data shows.
Ethereum Generates $742.9 Million in Fees In 180 Days
Ethereum is a smart contracting platform where users can launch dapps serving various sub-sectors in crypto, including gaming, decentralized finance (DeFi), and more.
Over the last six months, on-chain data shows that the platform generated $742.9 million in fees, more than the amount in Tron, a competing blockchain. In the last 180 days, Tron generated $282.4 million in on-chain fees.
BNB Chain, another smart contracting platform and ETH competitor came at a distant sixth with $115.9 million. Meanwhile, Bitcoin, the legacy network, stood eighth with $79.6 million in fees created.
Fees are critical in public blockchains as they incentivize node operators. In proof-of-work and proof-of-stake platforms like Ethereum and Bitcoin, validators and miners operate gear that consumes resources. By these nodes being online, public chains become decentralized. Moreover, transactions can be processed, ensuring platforms are operational and secure.
Fees generated by each network are a measure of on-chain activity. Ethereum’s fee superiority can be attributed to its active communities in DeFi, metaverse, gaming, non-fungible tokens (NFTs), and more. This already shows in the number of Ethereum-based protocols that, though launched on the smart contracting platform, exceeded independent networks in fees generated.
Related Reading: Tron Vs. Ethereum: Analyzing The Performance Gap And Its Impact On Crypto Investors
A notable dapp is Uniswap, a decentralized exchange, with $269.3 million in fees; Lido Finance, a liquidity staking platform, with $209.5 million; and GMX, a trustless derivatives trading platform where traders can trade, among other assets, ETH and Bitcoin straight from their non-custodial wallets like MetaMask, which churned $86 million in fees.
These protocols generated more fees than BNB Chain and Bitcoin, respectively.
The dominance of Ethereum-based dapps and its emergence as a top network generating high fees, and thus revenue for validators, highlight its position in the sphere.
The first mover advantage of Ethereum and its longevity solidifies its position in the smart contracting space. Compared to some competitors like Solana, ETH has an uptime close to 100% meaning it has been operational since its launch.
On August 5, 2021, Ethereum overhauled how it calculated and processed gas fees through EIP-1559. The upgrade introduced a base fee that everyone must pay and a tip for validators. In this system, the base fee is burnt and taken out of circulation, gradually making ETH deflationary. By mid-April, over 3.2 million ETH had been burnt according to UltraSoundMoney data.
On April 11, Etherscan data shows that the average transaction fee on ETH stood at $0.77
Feature Image From Canva, Chart From TradingView