Ethereum solidified its position as the leading blockchain in 2024 by generating $2.48 billion in transaction fees, as reported by CoinGecko. While its dominance in fee revenue remained unmatched, Ethereum’s price performance failed to meet market expectations.
In total, Layer 1 and Layer 2 blockchains collectively brought in approximately $6.9 billion in fees last year, reflecting the continued growth of blockchain activity across multiple ecosystems.
Ethereum’s Fee Leadership Remains Strong Despite Dencun Upgrade
Ethereum’s fee revenue for 2024 represented a 3% increase from the $2.41 billion it earned the previous year. This growth came despite the March 2024 Dencun upgrade, which aimed to reduce transaction costs on Layer 2 solutions and encourage users to transition from the Layer 1 chain to more scalable alternatives.
Monthly fee earnings for Ethereum fluctuated significantly. In 2023, they ranged from $91.22 million to $448.70 million, with peaks during periods of heightened activity, such as the meme coin boom in May and the end-of-year market rally. In 2024, this range widened, with monthly revenue falling between $62.82 million and $606.77 million.
The first quarter of 2024 was Ethereum’s most profitable in two years, generating $1.17 billion in fees. This surge was fueled by increased on-chain activity, primarily driven by the popularity of airdrop campaigns.
Tron and Solana See Explosive Growth
Tron ranked second among blockchains for fee revenue in 2024, earning $2.15 billion—a 116.7% increase from its 2023 total of $922.08 million. This growth was largely attributed to the rising use of stablecoins on the Tron network, with monthly fee earnings climbing steadily from $38.36 million in early 2023 to $342.54 million by December 2024.
Solana also experienced remarkable growth, with its fee revenue jumping by 2,838% year-over-year. The blockchain’s earnings skyrocketed from $25.55 million in 2023 to $750.65 million in 2024, driven by a significant increase in transaction volume. April 2024 saw such high activity that it caused occasional network congestion. Monthly revenue on Solana fluctuated widely, starting at $15.54 million in January, reaching a peak of $197.5 million in November, and ending the year at $120.95 million.
Bitcoin and BNB Chain See Moderate Growth
Bitcoin and BNB Chain posted more modest increases in fee revenue compared to their competitors. Bitcoin’s revenue grew by 16%, supported by increased activity from Ordinal NFTs, BRC-20 tokens, and Rune tokens, along with growing developer interest in the blockchain.
BNB Chain, on the other hand, recorded an 8.7% rise in fees, reflecting steady but slower growth.
A Growing Blockchain Economy
The combined $6.9 billion earned by Layer 1 and Layer 2 blockchains in 2024 highlights the increasing adoption of blockchain technology and the evolving competition among leading ecosystems. While Ethereum remains at the forefront, the rapid growth of networks like Tron and Solana indicates a shifting landscape.
As the blockchain space continues to innovate and attract users, 2025 may bring even more significant changes in fee revenue distribution, with new challengers emerging to compete for dominance.
