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L1 Blockchain and DeFi Protocols Dominate Crypto Fee Generation

by xyonent
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Ethereum Fees.jpg

According to new data from TokenTerminal, Ethereum generated the most fees among the top 20 protocols over the past 30 days, amounting to approximately $180 million.

On June 17, the crypto analytics platform reported that Ethereum far outperformed other blockchains, which were dominated by layer 1 chains and DeFi protocols, with only one layer 2 blockchain in the top 20. Coinbase blockchain Base generated $6 million in fees during the period.

“Given that activity on Base is outpacing Ethereum L1, this is a sign that L2 scaling is working,” he said.

After the Ethereum Dencun upgrade in March, Layer 2 fees dropped significantly.

Ethereum, Tron and Bitcoin Advance

According to the report, only Ethereum, Tron, Bitcoin, and Lido generated more than $100 million in fees in the past 30 days. Other findings showed that among decentralized exchanges, Uniswap DAO was the leader in fees, while Uniswap Labs had the lowest fees in the same category.

MakerDAO and Ethena dominate the decentralized stablecoin issuer category, while Aave is the clear market leader in lending, with a large gap between it and second-placed Morpho. This data does not include Tether or Circle, as they derive their fees and revenue off-chain.

The findings point out that revenue is calculated based on a percentage of the take rate that the protocol applies to fees, with Bitcoin and Uniswap DAO currently having a 0% take rate, while Ethereum’s tends to be around 80%.

Ethereum remains much more profitable as the network earns revenue from burning transaction fees and pays relatively low token incentives to validators. Bitcoin provides no revenue at all to BTC holders but pays significant token incentives to miners.

Moreover, the Ethereum ecosystem could receive a major boost in terms of adoption and growth when a spot Ethereum ETF launches next month, which would mean the asset would be classified as a commodity, although this could also be true for other altcoins.

Daily Crypto Fees

according to Cryptocurrency FeesEthereum generated $2.7 million in the past day, but Bitcoin edged out at $2.9 million.Bitcoin fees typically increase when there is increased demand on the network from meme coin minters and pecking order inscribers.

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

TokenTerminal suggested that investors pay close attention to fees on early-stage protocols that have yet to start monetizing.

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