Ethereum has been leading the way in fee generation among the top twenty protocols in the past 30 days, bringing in around $180 million, as per the latest data from Token Terminal. This dominance is particularly notable given that most of the other blockchains in the top 20 are layer-1 chains and DeFi protocols, with only one layer-2 blockchain making the list. In contrast, the Coinbase blockchain Base brought in the lowest fees during this period, totaling $6 million.
The report also highlighted that following the Ethereum Dencun upgrade in March, layer-2 fees experienced a significant decline. Despite this, Ethereum, Tron, Bitcoin, and Lido emerged as the top fee generators, each surpassing $100 million in fees over the past month. Among decentralized exchanges, Uniswap DAO led the way in fee generation, while Uniswap Labs lagged behind in the same category.
In the decentralized stablecoin issuers category, MakerDAO and Ethena stood out, while Aave dominated the lending category, with a notable lead over second-place Morpho. It’s worth noting that Tether and Circle were not included in the data analysis, as they generate fees and revenue off-chain.
The revenue calculations were based on the percentage take rate that each protocol applies to fees. While Bitcoin and Uniswap DAO currently have a 0% take rate, Ethereum typically operates with an 80% take rate. This difference in revenue models contributes to Ethereum’s profitability, as the network benefits from transaction fee burns and offers relatively low token incentives to validators.
Looking ahead, the potential launch of spot Ether ETFs in the coming month could provide a significant boost to the Ethereum ecosystem in terms of adoption and growth. This move could potentially classify Ether as a commodity, setting a precedent for other altcoins in the market.
On a daily basis, Ethereum generated $2.7 million in fees, closely followed by Bitcoin with $2.9 million. Notably, Bitcoin fees tend to rise during periods of increased network demand from meme coin minters and other activities. Uniswap and Aave secured the third and fourth spots in daily fee generation, bringing in $1.4 million and $1 million, respectively.
Token Terminal advised investors to keep an eye on fees, particularly for early-stage protocols that have yet to fully monetize their operations. As the crypto space continues to evolve, fee generation will remain a crucial aspect of evaluating the sustainability and profitability of various blockchain protocols and DeFi projects.