L1 blockchains and DeFi protocols dominate crypto fee generation

Ethereum generated the most fees among the top twenty protocols over the past 30 days at around $180 million, according to new data from Token Terminal.

On June 17, the crypto analytics platform reported that Ethereum was far ahead of other blockchains, dominated by Layer 1 chains and DeFi protocols, with only one Layer 2 blockchain in the top 20. Blockchain base Coinbase generated the least amount. of fees for the period of $6 million.

“Since activity on Base has surpassed Ethereum L1, this is a sign that L2 scaling is working,” he stated.

🤑Top 20 fee generating protocols in Crypto in the last 30 days👇

🗳️Key queries:

▪️5/20 are L1 blockchains, while only 1/20 are L2 blockchains
▪️Outside of L1 and L2 blockchains, all other protocols belong to the DeFi category
▪️Among the top 20, Ethereum generated the most… pic.twitter.com/sNG9br9chC

— Token Terminal (@tokenterminal) June 17, 2024

Layer 2 fees fell sharply after the Ethereum Dencun update in March.

Ethereum, Tron and Bitcoin Ahead

Ethereum, Tron, Bitcoin and Lido alone generated more than $100 million in commissions over the past 30 days, it reported. Other findings were that Uniswap DAO led fees among decentralized exchanges, while Uniswap Labs generated the least in the same category.

MakerDAO and Athena 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 findings noted that revenue was calculated based on the take percentage that the protocol applies to fees. Bitcoin and Uniswap DAO currently have a take rate of 0%, while Ethereum tends to have a take rate of around 80%, he noted.

Ethereum remains much more profitable because the network earns revenue from burning transaction fees and pays relatively low token incentives to validators. Bitcoin generates zero income for BTC holders, but pays substantial token incentives to miners.

Also, the Ethereum ecosystem could get a big boost in terms of adoption and growth if spot Ether ETFs are launched next month. This would mean that the asset is classified as a commodity, which could be the case for other altcoins.

Daily Crypto Fees

According to CryptoFees, Ethereum has generated $2.7 million in the last day. However, Bitcoin was just above at $2.9 million. Bitcoin fees tend to increase when there is increased demand on the minting network for meme coins and ordinal entries.

Uniswap and Aave were third and fourth with $1.4 million and $1 million in daily fees, respectively.

Token Terminal suggested that investors pay attention to the fees of early-stage protocols that have not yet begun to monetize.

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