Ethereum Shows Impressive Q1 2024 Growth: Tripled Earnings and Surging Network Usage
Summary:
Ethereum, the world's largest transaction volume blockchain, reported significant growth in Q1 2024. Its earnings tripled quarter-over-quarter to $369 million, marking a 210% year-over-year increase. Despite near-record high prices and steep transaction costs, Ethereum saw a surge in network usage and the number of transactions. There was an 86% sequential increase in the total value locked in Ethereum's decentralized finance ecosystem, reaching $55.9 billion. Tether (USDT) remained the top Ethereum-based stablecoin by market cap, and USDC (USDC) saw a 23% quarter-over-quarter market value increase.
In the first three months of 2024, Ethereum, the largest blockchain platform based on the volume of transactions, showed impressive expansion with positive trends across most financial performance indicators. As per Coin98 Analytics records, there was a threefold increase in Ethereum's earnings in the first quarter of 2024 compared to the previous quarter, amounting to $369 million. This represents a year-over-year boost of 210% up from $119 million during the equivalent period in 2023.
In Q1 2024, Ethereum's fees and revenues witnessed a sequential rise of 79% and 85% respectively. Transaction fees for the period generated $1.2 billion income for Ethereum, marking an impressive 155% hike compared to Q1 2023. Overall, Ethereum reported a total revenue of $1 billion in the first quarter of 2024, a notable surge of 186% from last year's $385 million.
Ethereum's Q1 2024 performance coincided with the cryptocurrency nearing record prices in March, leading to a considerable increase in transaction charges on the platform. Infact, as Ethereum soared beyond the $3,000 mark towards the end of February, some users reported paying over $100 for ETH transaction charges during peak periods. By March 1, the average 'gas' fee for a swapping transaction was roughly $79, with some users reporting estimated ETH swap fees of up to $400 in the same month.
However, despite the steep transaction charges, the network usage of Ethereum showed a significant rise in Q1 2024. Coin98 data reveals that there was a 8.4% quarter-over-quarter increase in Ethereum transactions during the first three months of 2024, pushing the total transactions to over 107 million.
Another noteworthy aspect is the 86% sequential increase in the total value locked (TVL) in Ethereum's decentralized finance ecosystem, to the tune of $55.9 billion. During this period, Tether (USDT) remained the largest Ethereum-based or ERC-20 stablecoin by market cap, experiencing a 14% growth in market value since the last quarter. USDT's main competition, USDC (USDC), saw a quarter-over-quarter increase of 23% in its ERC-20 market value.
In a recent review by Matrixport, models suggested that the first quarter of 2024 fared well for most asset classes, including traditional finance verticals. For instance, the Nasdaq showed a potential return of up to 10%, while Nvidia demonstrated potential returns of 81%. Commodities also traded strongly, with estimated returns of 19% for oil and 11% for gold. Interestingly, while US bonds continued their downward trend, Bitcoin and Ethereum reported Q1 gains of 57% and 45% respectively.
Published At
4/3/2024 2:26:50 PM
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