Ethereum generated $1.7 billion in transaction fees in the last 90 days. I find this fascinating for a few reasons.
- Centralized exchanges like Coinbase capture a non-trivial amount of fees not included in this number. Coinbase generated $2.5b in revenue in Q4 '21.
- Centralized marketplaces like OpenSea have also captured significant fees.
- Layer 2 networks (e.g., Arbitrum and Optimism) offer 70x to 80x cheaper fees for the same transactions.
- Layer 1 (i.e., Ethereum) network enhancements have driven down average fees.
Where will each of these protocols and services sit in the transaction fee value chain?
As they say,
Your margin is my opportunity.
(see Too Cheap to Meter).
Ethereum Total Revenue over the last 90 days. Source: Token Terminal
OpenSea protocol revenue and total revenue over the last 90 days. Source: Token Terminal
Average gas fee savings on the Optimism L2 Network. Source: Dune Analytics