Ethereum, the blockchain network, is on track to achieve an impressive yearly revenue of $1 billion, according to a recent report. The network recorded a staggering income of $365 million in the first quarter of this year, resulting in a 155% increase in quarterly revenue compared to the same period last year. The report by analyst Michael Nadeau reveals that this Q1 2024 revenue surpasses the previous figure of $123 million recorded in Q4 2023.
Since the beginning of this year, Ethereum has been processing an average of 1.15 million daily transactions, slightly higher than the figure recorded last year (1.05 million) and slightly lower than the figure recorded in 2021 (1.25 million).
Ethereum achieved its first profitable year in 2023, generating a revenue of approximately $623 million since its launch in 2015. However, this amount is lower than its record-breaking revenue of $9.9 billion in 2021.
Nadeau attributes this significant growth to the network’s transition to proof-of-stake consensus in September 2022, which led to an 80% reduction in token incentives paid to validators. He also highlights a fee surge of 58% since 2017.
Looking ahead, Nadeau predicts that digital assets will outperform other assets in the market. He anticipates a substantial increase in liquidity in the coming years as the United States needs to refinance its debt. He believes that the market has already factored in three rate cuts from the Federal Reserve this year, which will benefit tech stocks and high-quality digital assets.
Nadeau identifies three catalysts that could trigger a bullish trend in the crypto market. He points to the potential approval of United States spot Bitcoin exchange-traded funds (ETFs), the Bitcoin halving event, and the “innovative cycle” as factors that could drive market growth. He explains that Bitcoin ETFs would provide widespread access and generate interest in cryptocurrencies, while the halving event historically leads to a surge in Bitcoin’s performance. The innovative cycle, on the other hand, would drive venture investments and stimulate retail interest in the market. Nadeau also notes that altcoins, including Ethereum, tend to outperform Bitcoin in the later stages of a bullish trend.