Ethereum’s Pure Revenue Reaches $1.2 Billion as More Use Cases Appear on Chain

The revenue of the Ethereum blockchain has reached $1.2 billion, according to data provided by token_terminal. Other chains have also shown an increase in their revenue in 2021 with the help of Web3 technology.

OpenSea and LooksRare NFT exchange platforms have also entered the top as the most profitable protocols based on blockchain technology. The revenue of a chain or a protocol is a share of fees that are being sent to the protocol’s treasury, which could act as a private and public wallet or smart contract.

periodic reminder

it was impossible to create a chart like this a few years ago

web3 moves fast pic.twitter.com/E7Py5FUJrB

— Token Terminal (@tokenterminal) February 1, 2022

In the case of Ethereum, “revenue” is the volume of fees being sent to miners and validators. According to the WatchTheBurn fee-tracking service, Ethereum’s network has “lost” $4.8 billion worth of additional fees due to a fee-burning mechanism presented in EIP-1559.

Sources of revenue

One of the main sources of revenue for projects mentioned in the chart is NFTs, DeFi and other Web3-related solutions. The most recent NFT craze that continued in 2022 launched Ethereum fees to the sky once again, with some users obligated to pay up to $100 per transaction.

Though the popularity of decentralized finance has dropped significantly, the industry has still brought millions of dollars for miners and validators on the Ethereum network. On the other hand, the success of the DeFi industry is nowhere near the revenue generated by NFT marketplaces, which is currently at $343 million.

GameFi-related products like Axie Infinity have also appeared at the top, with $16 million in revenue generated in 2021. Part of the top was also occupied by Layer 2 chains like Avalanche and Polygon.