Ethereum Layer-1 Revenue Drops 99% in Six Months Amidst L2 Growth
CryptoNewsTerminal Staff03 Sep, 2024
Ethereum Layer-1 Revenue Drops 99% in Six Months Amidst L2 Growth
Ethereum's layer-1 revenue has experienced a staggering 99% plunge over the past six months, according to data from Token Terminal. This sharp decline can be attributed to the significant reduction in layer-2 transaction fees. The drop in fees has sparked a surge in layer-2 monthly active users (MAUs) and transaction volumes. As a result, the number of L2 MAUs has doubled, while the number of transactions has also seen a substantial increase. This dynamic shift highlights the growing adoption and utilization of layer-2 solutions, which offer lower transaction costs and faster processing times compared to Ethereum's main blockchain. As a result, layer-2 scaling solutions have emerged as an attractive alternative for users seeking to interact with the Ethereum ecosystem.
