Ethereum generated US$39 million (AU$58.8 million) in revenue in August, down 75% from August 2023 and 30% from August 2024. By this measure, August was among the weakest months since January 2021.
Network fees also fell month over month. Total fees declined about 20% to US$39.7 million (AU$59.6 million) from July’s US$49.6 million (AU$74.4 million).
Post-Dencun dynamics remain a key factor. The March 2024 Dencun upgrade cut costs for Layer-2 networks posting data to Ethereum, driving materially lower fees and compressing protocol revenue even as on-chain activity migrates to L2.
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The revenue slide has renewed debate on fundamentals. Critics argue falling fees and revenue signal an unsustainable model at the base layer. Supporters counter that Ethereum’s role as a settlement and data-availability backbone is intact and that lower fees are a feature for scaling, not a failure of demand.
Things got heated when a Messari researcher known as AJC claimed that Ethereum is “dying”, citing a steep drop in network revenue despite the recent price rally.
The claim prompted pushback from Ethereum supporters and even other Messari researchers. One of them pointed to tentative improvements in active addresses and in transaction counts/throughput, but AJC dismissed those counters, calling active addresses and throughput “meaningless statistics” because they do not capture whether the protocol is generating sustainable economic value.
He added that a larger stablecoin float does not help Ethereum unless on-chain velocity rises, and that continued Layer 2 expansion is not a positive on its own “if there’s no marginal user demand for another L2.”
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The post Ethereum Revenue Plunges 44% in August Despite Record ETH Price appeared first on Crypto News Australia.
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