TL;DR
- Ethereum’s Layer 1 blockchain accumulates $1.67 billion in DeFi fees, dominating the sector with over 30% of total fees collected.
- Despite leading in fee accumulation, Ethereum’s daily DeFi fees have declined, now standing at $170,000 compared to $11 million in May 2023.
- Vitalik Buterin proposes scaling Ethereum Layer 1 tenfold to address slowing activity and support over 120 million weekly users.
Ethereum’s Layer 1 blockchain has once again demonstrated its dominance in the DeFi sector, accumulating a staggering $1.67 billion in fees. This impressive figure accounts for over 30% of all fees collected from DeFi ecosystems, solidifying Ethereum’s position as the leading platform for DeFi activities.
Fee Accumulation and Comparisons
On-chain data analytics platform Growthepie revealed that Ethereum’s Layer 1 blockchain has amassed over $1.67 billion in gas fees from DeFi transactions. This places Ethereum far ahead of its competitors, with Base, ZKsync Era, and Arbitrum One trailing behind, having accumulated $39.53 million, $37.69 million, and $34.60 million in DeFi fees, respectively.
Despite the significant lead, Ethereum’s daily DeFi fees have seen a decline, currently standing at $170,000, a far cry from the highs of over $11 million recorded in May 2023.
Weekly and Daily Fee Insights
Ethereum continues to lead in weekly DeFi fees, accumulating a little over $1 million. Base and Arbitrum One follow, with weekly fees of $179,000 and $22,000, respectively.
The data highlights the massive gap between Ethereum and other chains in terms of fee accumulation. However, it is worth noting that Ethereum’s CeFi transaction fees are significantly lower than its DeFi fees, with all-time CeFi fees standing at a little over $635 million.
Transaction Counts and Network Activity
The DeFi transaction count on Ethereum Layer 1 is notably lower than its competitors, with a little over 149 million all-time transactions.
In comparison, Base has recorded over 352 million all-time DeFi transactions, while ZKsync Era and Arbitrum One have recorded over 150 million and 155 million transactions, respectively. This discrepancy in transaction counts underscores the varying levels of network activity across different platforms.
Vitalik Buterin’s Proposal for Scaling
Ethereum co-founder Vitalik Buterin recently proposed scaling Ethereum Layer 1 tenfold to address the slowing activity on the base layer. Buterin emphasized the need for more scaling to support over 120 million Ethereum users weekly.
The proposal includes increasing gas limits and introducing rollup support to lower gas fees, improve network security, and mitigate potential censorship on Layer 2s. Ethereum’s Layer 1 blockchain continues to dominate the DeFi landscape, accumulating substantial fees and maintaining its position as the leading platform for DeFi activities.
