Ethereum (ETH) continues to be the top dog when it comes to generating fees in the blockchain world, signaling its unwavering adoption and growth.
In an April 10 report, blockchain data firm Token Terminal revealed that Ethereum generated more than double the fees of its nearest competitor over the past six months, raking in a staggering $743 million in cumulative daily fees.
Low Ethereum fees are still challenging for non-whale users
Token Terminal stresses the importance of examining fees as a key metric, as it highlights which protocols are genuinely in use and signals continued growth for the ecosystem. Uniswap follows closely behind, landing in third place with $269 million in fees generated over the past six months.
Moreover, BitInfoCharts reports relatively low average transaction fees for Ethereum of around $4.70, making it less painful for users than expected. However, these fees still challenge non-whale users, who may prefer to explore alternative networks.
Layer-2 networks offer solutions
Layer-2 networks have emerged as a promising solution to address high transaction costs, with Arbitrum One ranking sixth-highest in terms of fees generated. According to Crypto Fees, it generated a daily average of $236,000 in fees over the past week.
L2fees reports that it only costs $0.06 to conduct an Ethereum transaction on the Aribtrum network and $0.17 for a token swap. Nevertheless, due to optimistic rollup technology, it can take up to a week to withdraw Ethereum from the network, presenting limitations.
Despite Ethereum’s undeniable dominance in fee generation, its prices have remained stagnant over the past 24 hours, hovering around $1,859. It remains in the shadow of bitcoin, which has been consolidating for the past three weeks. With the upcoming Shanghai (Shapella) hard fork on April 12, more turbulence could be on the horizon.