- Ethereum’s revenue hit $10 billion as demand for ETH increased over the week.
- Network activity also rose but transactions later dropped.
ETH, the native cryptocurrency of the Ethereum blockchain, had tongues wagging over the course of the just-ended week. This was because BlackRock filed for an Ethereum ETF, triggering a breakout for ETH as the coin rose above $2,000.
As expected, the increase led the broader market to assume that it is the altcoin season to shine. But while the market was fixated on the price action, the Ethereum blockchain was also hitting landmarks that it had previously dropped from.
Returns get back to the highs
One such milestone was the Ethereum revenue. Eric Smith, Chief Investment Officer at 401 Financials, posted that the revenue had hit $10 million again. From the data coined from Token Terminal, the last time the Ethereum blockchain hit such levels was in July.
ETH price wasn’t the only thing that was up yesterday. Ethereum’s one day revenue hit $10 million for the first time since July.
📈
via @tokenterminal pic.twitter.com/hw2wZdVtoO
— Erik Smith, CFP® (@eriksmithcfp) November 10, 2023
For the unfamiliar, Ethereum makes its revenue mainly from network fees it charges users of the blockchain. Hence, the increase in revenue means that there was a surge in activity on the blockchain during the week.
The surge in revenue also means that there must have been an increase in the average gas price. According to information from Etherscan, ETH’s average transaction fee tapped 57.1 on 9th November.
The Ethereum gas measures the amount of computational effort required to make transactions on the network. It also serves as a way of incentivizing validators on the blockchain. For context, validators are people responsible for keeping the Ethereum network working.
Source: Etherscan
Activity rises, then dips
This value was the highest in the last 30 days, meaning that there was an increase in demand for ETH. Elsewhere, Ethereum’s network growth rose to 78,500. Network growth shows the number of new addresses being created on the blockchain.
When the metric increases, it means user adoption is growing on the network. A decrease implies that traction has reduced. So, the initial jump suggests that new addresses were transacting actively on Ethereum.
How much are 1,10,100 ETHs worth today?
But at the time of writing, the network growth had dropped to 29,300. Like the network growth, active addresses on the Ethereum network also climbed to 459,000 on 10 November. Active addresses show the level of interaction or speculation around a token.
Therefore, the metric at that time means that deposits on the network were at impressive levels. However, the press time state of the active addresses showed that the metric had decreased.
Source: Santiment
Looking at the current state of Ethereum, the drop in gas fees has affected the revenue. Going forward, to surpass the $10 billion, the demand for ETH needs to increase more than it has recently.