Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Cryptocurrencies

Ethereum Layer 1 accumulates $1.67 billion in fees from DeFi

Source Cryptopolitan

On-chain data analytics platform Growthepie has revealed that the Ethereum Layer 1 blockchain has accumulated over $1.67 billion in gas fees from DeFi, accounting for over 30% of all the fees accumulated from all DeFi ecosystems. Base, ZKsync Era, and Arbitrum One are the chains taking the 2nd, 3rd, and 4th place after Ethereum, having accumulated $39.53 million, $37.69 million, and $34.60 million in DeFi fees, respectively.

The data also indicated that Ethereum Layer 1 is still leading in weekly DeFi fees, accumulating a little over $1 million. Base and Arbitrum One are the 2nd and 3rd chains in weekly fees, accumulating over $179,000 and $22,000, respectively. The Ethereum on-chain data platform highlighted the massive gap between Ethereum and other chains in terms of fees.

The chain is still significantly lower from its daily DeFi fee highs recorded in May 2023 and March 2024. Ethereum has recorded a little over $170,000 in daily DeFi fees as of February 15, lower than its highs of over $11 million in May 2023. Growthepie also highlighted that the other chains are also down significantly, with most posting zero daily fees while some managed only a few thousand dollars in fees.

The data further revealed that Ethereum CeFi transaction fees are significantly lower than DeFi fees, with all-time CeFi fees standing at a little over $635 million. Weekly CeFi transaction fees on Ethereum Layer 1 are still higher than DeFi weekly fees on the chain, standing at a little over $1.9 million as of February 15.

The DeFi transaction count on Ethereum Layer 1 is notably lower than Base, ZKsync Era, and Arbitrum One, standing at a little over 149 million all-time transactions. Base has recorded over 352 million all-time DeFi transactions, while ZKsync Era and Arbitrum One have recorded over 150 million and 155 million transactions, respectively.

Vitalik Buterin advocates for Ethereum Layer 1 dominance in DeFi

Reasons to have higher L1 gas limits even in an L2-heavy Ethereumhttps://t.co/BMFhzoO8bE

— vitalik.eth (@VitalikButerin) February 14, 2025

The Ethereum co-founder Vitalik Buterin recently released a proposal suggesting the scaling of Ethereum Layer 1 10 times more amid the slowing activity on the base layer. Buterin explained the need for more scaling to support over 120 million Ethereum users weekly. The Ethereum co-founder added that the scaling would lower Ethereum’s gas fees, improve the network’s security, and introduce rollups support.

Buterin also expressed concern about potential censorship on Layer 2s, especially when the chains are congested. The blockchain’s co-founder explained that centralized sequencers worsened L2 censorship. The scaling proposal suggested force-inclusion mechanisms that would allow users to shift to the base layer and complete transactions in case of censorship. Buterin confirmed that the mechanism would also allow massive exit events without crippling gas fees.

The proposal also suggested a continued increase in Ethereum’s base layer gas limits. Buterin pointed out the recent increase in gas limits from 30 million to 36 million. The Ethereum co-founder still pointed out the issues that might come in the long term, including the difficulty in reducing the gas limit compared to increasing the limit.

Ethereum Layer 2 facing scalability issues

the clip for you @rajgokal https://t.co/nDPDyfp1kf pic.twitter.com/j7WKD5TOmM

— Good Game (@goodgamepodxyz) February 9, 2025

Buterin’s suggestion to scale up Ethereum Layer 1 comes amid the chain’s Layer 2 struggles, including decreasing gas fees and users. On-chain data has revealed that Ethereum Layer 2 gas fees had dropped below 1 Gwei, the lowest it has been in 5 years. The low fees further indicated the dwindling on-chain activity on the chain’s Layer 2s.

A recent interview with Alliance DAO’s Qiao Wang on The Good Game podcast revealed that he had lost faith in the capabilities of Ethereum L2s. The Alliance DAO co-founder further highlighted that protocols performed better on other chains than Ethereum. Wang insisted that it would be wiser for developers to build on Solana rather than Ethereum.

The Alliance DAO co-founder still mentioned that the blockchain’s scalability remained an issue despite its strong ecosystem. Wang also explained that current users were depending on the chain because ‘they have been in it for too long.’ The DeFi protocol’s executive said that the issues on the blockchain led to him shifting to other options.

Cryptopolitan Academy: FREE Web3 Resume Cheat Sheet - Download Now

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Gold Price Forecast: XAU/USD drifts higher above $4,200 as Fed delivers expected cut Gold price (XAU/USD) gains momentum to around $4,235 during the early Asian session on Thursday. The precious metal extends its upside after the US Federal Reserve (Fed) delivered an expected third consecutive interest rate cut and maintained its outlook for just one cut in 2026.

Author FXStreet

Dec 11, Thu

Gold price (XAU/USD) gains momentum to around $4,235 during the early Asian session on Thursday. The precious metal extends its upside after the US Federal Reserve (Fed) delivered an expected third consecutive interest rate cut and maintained its outlook for just one cut in 2026.

Ethereum Price Slips Lower — $3,000 Looms as the Key Battleground Ethereum is attempting to recover from a $3,026 low but remains below $3,200 and the 100-hour SMA, with a bearish trend line near $3,175 capping rebounds as bulls need a clean break above $3,200 to target $3,250–$3,400, while a drop below $3,050 risks a retest of $3,000 and $2,940.

Author Mitrade

Dec 15, Mon

Ethereum is attempting to recover from a $3,026 low but remains below $3,200 and the 100-hour SMA, with a bearish trend line near $3,175 capping rebounds as bulls need a clean break above $3,200 to target $3,250–$3,400, while a drop below $3,050 risks a retest of $3,000 and $2,940.

Macro Analysts: Hawkish Japan Could Push Bitcoin Below $70K Analysts predict Bitcoin may face further declines towards the $70,000 mark if the Bank of Japan raises interest rates as expected.

Author Mitrade

Dec 15, Mon

Analysts predict Bitcoin may face further declines towards the $70,000 mark if the Bank of Japan raises interest rates as expected.

Bitcoin Slides 5% as Sellers Lean In — Can BTC Reclaim $88,000?Bitcoin has dropped back below $88,000 after rolling over from $90,500, with price still trading under the 100-hour Simple Moving Average. The sell-off found a floor at $85,151, and BTC is now consolidating near that base, but rebounds are facing pressure from a bearish trend line around $89,000. Bulls need to retake $88,000–$89,000 to ease downside risk; failure to do so keeps $85,500–$85,000 and then $83,500 in play, with $80,000 as the deeper “line in the sand.” Bitcoin (BTC) is back in damage-control mode after a sharp pullback wiped out recent gains. The price failed to reclaim the $90,000–$90,500 band, rolled over, and slid through $88,500 before briefly dipping under $87,000. Buyers did show up around $85,000, but the rebound so far looks more like stabilization than a clear trend reversal. Bitcoin dips hard, finds a bid near $85,000（h3） BTC’s latest move lower began when it couldn’t build follow-through above $90,000 and $90,500. Once that upside stalled, sellers took control and pushed price down through $88,500. The slide accelerated enough to spike below $87,000, but the market didn’t free-fall. Bulls defended the $85,000 zone, printing a low at $85,151. Since then, Bitcoin has been consolidating below the 23.6% Fibonacci retracement of the drop from the $93,560 swing high to the $85,151 low — a clue that the bounce is still shallow and that sellers haven’t fully backed off yet. Structurally, BTC is still on the back foot: It’s trading below $88,000, and It remains below the 100-hour Simple Moving Average, keeping short-term trend pressure pointed downward. Resistance is layered, and $89,000 is the problem area（h3） If bulls try to turn this into a recovery, they’ll have to climb through multiple ceilings in quick succession. First, BTC faces resistance around $87,150, followed by a more meaningful barrier near $87,500. From there, the market’s attention snaps back to $88,000 — the level BTC just lost and now needs to reclaim. A close back above $88,000 would improve the tone, but it doesn’t solve the bigger issue: there’s a bearish trend line on the hourly BTC/USD chart (Kraken feed) with resistance near $89,000, which also lines up with the next technical hurdle. If BTC can push through $89,000 and hold, the rebound could extend toward $90,000, with follow-through targets at $91,000 and $91,500. But until price clears that $88,000–$89,000 zone, rallies are at risk of being sold rather than chased. If BTC fails to reclaim resistance, the downside path is clear（h3） The near-term bear case is simple: if Bitcoin can’t climb back above the $87,000 area and keep traction, sellers may attempt another leg lower. Support levels line up like this: Immediate support: $85,500 First major support: $85,000 Next support: $83,500 Then $82,500 in the near term Below that, the major “don’t break this” level is still $80,000. If BTC slips under $80,000, the risk of acceleration to the downside increases significantly — not because it’s magic, but because it’s the kind of psychological and structural level that tends to trigger forced de-risking. Indicators: momentum still leans bearish（h3） The intraday indicators aren’t offering much comfort yet: Hourly MACD is losing pace in the bearish zone. Hourly RSI remains below 50, suggesting sellers still have the upper hand on short timeframes. So while the $85,000 defense held for now, the market hasn’t flipped bullish — it’s just stopped bleeding.

Author Mitrade

22 hours ago

Bitcoin has dropped back below $88,000 after rolling over from $90,500, with price still trading under the 100-hour Simple Moving Average. The sell-off found a floor at $85,151, and BTC is now consolidating near that base, but rebounds are facing pressure from a bearish trend line around $89,000. Bulls need to retake $88,000–$89,000 to ease downside risk; failure to do so keeps $85,500–$85,000 and then $83,500 in play, with $80,000 as the deeper “line in the sand.” Bitcoin (BTC) is back in damage-control mode after a sharp pullback wiped out recent gains. The price failed to reclaim the $90,000–$90,500 band, rolled over, and slid through $88,500 before briefly dipping under $87,000. Buyers did show up around $85,000, but the rebound so far looks more like stabilization than a clear trend reversal. Bitcoin dips hard, finds a bid near $85,000（h3） BTC’s latest move lower began when it couldn’t build follow-through above $90,000 and $90,500. Once that upside stalled, sellers took control and pushed price down through $88,500. The slide accelerated enough to spike below $87,000, but the market didn’t free-fall. Bulls defended the $85,000 zone, printing a low at $85,151. Since then, Bitcoin has been consolidating below the 23.6% Fibonacci retracement of the drop from the $93,560 swing high to the $85,151 low — a clue that the bounce is still shallow and that sellers haven’t fully backed off yet. Structurally, BTC is still on the back foot: It’s trading below $88,000, and It remains below the 100-hour Simple Moving Average, keeping short-term trend pressure pointed downward. Resistance is layered, and $89,000 is the problem area（h3） If bulls try to turn this into a recovery, they’ll have to climb through multiple ceilings in quick succession. First, BTC faces resistance around $87,150, followed by a more meaningful barrier near $87,500. From there, the market’s attention snaps back to $88,000 — the level BTC just lost and now needs to reclaim. A close back above $88,000 would improve the tone, but it doesn’t solve the bigger issue: there’s a bearish trend line on the hourly BTC/USD chart (Kraken feed) with resistance near $89,000, which also lines up with the next technical hurdle. If BTC can push through $89,000 and hold, the rebound could extend toward $90,000, with follow-through targets at $91,000 and $91,500. But until price clears that $88,000–$89,000 zone, rallies are at risk of being sold rather than chased. If BTC fails to reclaim resistance, the downside path is clear（h3） The near-term bear case is simple: if Bitcoin can’t climb back above the $87,000 area and keep traction, sellers may attempt another leg lower. Support levels line up like this: Immediate support: $85,500 First major support: $85,000 Next support: $83,500 Then $82,500 in the near term Below that, the major “don’t break this” level is still $80,000. If BTC slips under $80,000, the risk of acceleration to the downside increases significantly — not because it’s magic, but because it’s the kind of psychological and structural level that tends to trigger forced de-risking. Indicators: momentum still leans bearish（h3） The intraday indicators aren’t offering much comfort yet: Hourly MACD is losing pace in the bearish zone. Hourly RSI remains below 50, suggesting sellers still have the upper hand on short timeframes. So while the $85,000 defense held for now, the market hasn’t flipped bullish — it’s just stopped bleeding.

Senate Delays Crypto Market Structure Hearings to Early 2026 The Senate Banking Committee has postponed cryptocurrency market structure hearings until 2026, citing ongoing bipartisan negotiations.

Author Mitrade

19 hours ago

The Senate Banking Committee has postponed cryptocurrency market structure hearings until 2026, citing ongoing bipartisan negotiations.

Popular Articles

Popular Articles

Popular Articles

Popular Articles

Popular Articles

Popular Articles

Popular Articles

Popular Articles

Popular Analysis

Popular Analysis

Popular Analysis

Popular Analysis

Popular Analysis

Popular Analysis

Top Blog Posts

Top Blog Posts

Top Blog Posts

Top Blog Posts

Top Blog Posts

Top Blog Posts

Top Blog Posts

Beginners

Ethereum Layer 1 accumulates $1.67 billion in fees from DeFi

Vitalik Buterin advocates for Ethereum Layer 1 dominance in DeFi

Ethereum Layer 2 facing scalability issues

Recommended Articles