In the first quarter of 2024, Ethereum is expected to reach a billion dollars in total earnings, following a revenue increase of 155% compared to the same period the previous year. This substantial income marks a near-doubling from the $123 million profit earned in the last quarter of 2023, as reported by analyst Michael Nadeau from The DeFi Report.
The cost of making a transaction on Ethereum, referred to as fees, rose by 155% from Q1 2023, reaching a staggering $1.17 billion. This surpasses the earnings of the last quarter by no less than 80%, which were $900 million.
Ethereum entered the market in 2015, but it wasn’t until 2023 that the platform generated substantial profits, raking in approximately $623 million. Nadeau attributed this financial success to Ethereum’s increasing decentralization and lower transaction fees, which resulted from the shift to Proof-of-Stake Validators in September 2022. This change significantly decreased incentive payments to validators, amounting to only 20% of their original value per block.
Nadeau pointed out that Bitcoin and Ether often follow similar trends, with Bitcoin leading the way during the initial phases of a bull market due to its well-known status as the first cryptocurrency. However, as the market cycle advances, Ether and other alternative coins typically gain more ground in terms of price growth.
An analyst brought attention to several factors that could contribute to a optimistic perspective in the coming years: the debut of U.S. Bitcoin ETFs, the upcoming Bitcoin halving event, and a time of advancements. Furthermore, Ethereum’s robust financial performance and positive influence from industry progress indicate it will likely maintain its profitable trajectory in the future.
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2024-04-19 10:05