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Ethereum Remains Revenue King as Competing L1s Get Crushed

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The fees and earnings of a crypto network are good indicators of the state of the markets. In bull markets, demand is high and fees and returns rise, however, when the bears are in control, the opposite happens.

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After about half a year of the current bear market cycle, the earnings of many crypto networks have fallen below the asset prices themselves.

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This pattern was observed by Crypto Pragmatist founder Jack Niwald on June 7, who explained why he believes Ethereum remains the king of the crop.

Ethereum is the king of fees

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Considering network fees, Ethereum became unusable by the average person in November and May as gas prices skyrocketed to triple digits. However, some were still willing to pay that much to use the network, which is indicative of the demand for Ethereum block space.


“The Ethereum blockspace is a premium product: it is designed for the most expensive customers who are most willing to pay any price. Just look at the BAYC land sale.”

Nivold observed that alternative Tier 1 networks do not benefit from this fee reflection “because their competitive advantage wanes during periods of lower activity.”

He used Solana as an example in which value moving down the chain has been crushed in the last couple of months. The five outages this year have also taken their toll on Solana, which was once considered an “Ethereum killer.”

As a result, alternative Tier 1s may be overpriced, he added, or they may be “judged by potential rather than by activity.”

paid pigs

The Token Terminal chart has been used to illustrate the top ten pay hogs in the past six months. All of them managed to exceed $10 million in daily income during the peak of the bull cycle, but at the moment they are struggling to reach $1 million. The output was pretty clear:

“And Ethereum, as always, remains king.”

According to the data, the average daily Ethereum fee for the last week was just over $10 million per day. Crypto fees.

However, the intranet bullish performance has not been reflected in the prices of the underlying asset as the sell-off continues.

Ethereum is down 6% in the last 24 hours, dropping to $1,750 at the time of writing. CoinGecko. The second largest cryptocurrency in the world has lost 12% over the past week and is now down 64% from its all-time high in November.

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