cryptoglobe.com
The second-largest cryptocurrency by market capitalization Ethereum ($ETH) has seen its protocol revenue surpass the $10 billion mark after significant growth that has seen it overtake tech titans like Microsoft and Adobe in reaching the milestone.
According to a report from cryptocurrency brokerage firm Caleb & Brown, it took Ethereum around 7.5 years to reach $10 billion in annual revenue, while it took Microsoft and Above 19 and 20 years to reach that milestone, respectively.
The data further shows that Ethereum reached the $10 billion mark through fees collected on transactions and other network activities, which include payments for using decentralized finance (DeFi) applications, minting and trading ERC-20 tokens and non-fungible tokens (NFTs), and more.
đź’Ą #Ethereum surpasses $10B Revenue in 7 years!$ETH has generated US$16.8 billion in fees since 2015, with over 60.0% of this converting into revenue. đź‘€ pic.twitter.com/MxQdY0uezu
— RR2Capital (@RR2Capital) September 26, 2023
Ethereum’s network revenue has notably plummeted by over 77% since last year, amid a wider crypto market slump. The decentralized platform has earned $1.7 billion in 2023 so far, according to Token Terminal, a crypto analytics company.
However, a VanEck valuation projects that Ethereum could increase its annual revenue from $2.6 billion to $51 billion by 2030, if it continues to grow its user base. Notably, a recent JPMorgan report suggests that after the Shanghai upgrade, Ethereum failed to meet expectations and attract institutional interest.
Ethereum’s key performance indicators, such as daily transactions, active user addresses, and the total value locked in decentralized finance (DeFi) platforms, have all apparently seen a downturn after an underwhelming boost in network activity.
The amount of Ether staked has increased by 50% since the Shanghai upgrade, but this has not translated into heightened network activity, partly over the recent collapse of cryptocurrency ecosystems like Terra and of crypto exchange FTX.
Current data from Etherscan reveals that Ethereum facilitated over 883,000 transactions on September 24, 2023. However, this was a decline from the 1.93 million transactions recorded on December 9. At present, the mean transaction fee hovers around $0.74.
Featured image via Pixabay.