On-chain data analytics platform Growthepie has released new data showing that the Ethereum Layer 1 blockchain has garnered over $1.67 billion in gas fees from DeFi, contributing to over 30% of all the fees amassed from all DeFi ecosystems. The chains following in line after Ethereum are Base, ZKsync Era, and Arbitrum One after having accumulated $39.53 million, $37.69 million, and $34.60 million in DeFi fees, respectively.
The data further underscores that Ethereum Layer 1 continues to lead in weekly DeFi fees, amassing just over $1 million. Base and Arbitrum One follow as the 2nd and 3rd chains in weekly fees, garnering over $179,000 and $22,000, respectively. The stark gap between Ethereum and other chains in terms of fees was underscored by the on-chain data platform.
However, Ethereum’s current earnings are still considerably lower than its daily DeFi fee highs documented in May 2023 and March 2024. As of February 15, Ethereum recorded a little over $170,000 in daily DeFi fees, significantly lower than its highs of over $11 million in May 2023. Other chains have also seen a significant drop, with most posting zero daily fees while others only managed a few thousand dollars in fees.
The data also highlighted that Ethereum CeFi transaction fees are significantly lower than DeFi fees, with all-time CeFi fees standing at just over $635 million. As of February 15, weekly CeFi transaction fees on Ethereum Layer 1 still surpassed DeFi weekly fees on the chain, standing at just over $1.9 million.
When it comes to DeFi transaction count, Ethereum Layer 1 lags behind Base, ZKsync Era, and Arbitrum One, recording a little over 149 million all-time transactions. Base has logged over 352 million all-time DeFi transactions, while ZKsync Era and Arbitrum One have recorded over 150 million and 155 million transactions, respectively.
Ethereum co-founder Vitalik Buterin recently released a proposal suggesting a tenfold scaling of Ethereum Layer 1 in light of the slowing activity on the base layer. Buterin outlined the need for further scaling to accommodate over 120 million Ethereum users weekly. The suggested scaling would decrease Ethereum’s gas fees, enhance the network’s security, and introduce rollups support.
Buterin also expressed concerns regarding potential censorship on Layer 2s, particularly during times of congestion. Centralized sequencers, he explained, exacerbate L2 censorship. His proposal suggests incorporating force-inclusion mechanisms that would permit users to revert to the base layer and complete transactions in the event of censorship.
Despite the strength of its ecosystem, Ethereum’s scalability remains a concern. The recent drop in Ethereum Layer 2 gas fees to below 1 Gwei, the lowest in 5 years, and decreasing user activity indicate ongoing challenges. Some experts, such as Alliance DAO’s Qiao Wang, believe that protocols perform better on other chains than Ethereum, suggesting developers would be wiser to build on alternatives like Solana.
