Ethereum, the second-largest cryptocurrency in the world, has seen a huge drop in the money it makes from transaction fees. Compared to its highest point in late 2021, its quarterly revenue has fallen by about 95%. This has mostly happened because fewer people are using Ethereum directly, as more transactions are now being processed on cheaper Layer 2 networks. Also, the excitement around NFTs has slowed down, reducing activity on the Ethereum network.
Why Has Ethereum’s Fee Revenue Dropped?
A report from Token Terminal has shown that Ethereum is expected to make only $217 million in transaction fees in the first three months of 2025. This is a huge drop from the $4.3 billion it made in late 2021, when the crypto market was at its peak.
Ethereum’s Biggest Quarterly Drop Since 2018
Ethereum has not only lost money in fees—its price has also dropped a lot.
- In November 2021, Ethereum’s price hit an all-time high of $4,878.
- Today, ETH is trading at about 58% lower than that peak.
- In the first three months of 2025, Ethereum’s price fell by 40%, making this its biggest quarterly drop since 2018.
- In just the last month, Ethereum’s price has dropped 25%, now hovering around $1,997.
Even though Bitcoin and some other cryptocurrencies have been rising in value, Ethereum has struggled to keep up.
What’s Next for Ethereum?
Even with these challenges, Ethereum is still the most widely used blockchain for smart contracts. However, since Layer 2 networks are handling more transactions and NFTs are no longer as popular, Ethereum needs new ways to bring in money.
If more companies, developers, and financial institutions start using Ethereum, transaction fees could increase again. But for now, the numbers show that Ethereum is not making as much money from fees as it once did, and its price is struggling to recover.
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