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

Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonight The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Author Suzie

Sep 22, Tue

The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changed Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Author Irene Q.

Sep 23, Wed

Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Memory chips surge, Nasdaq notches a second straight record close — why the Dow fell 185 points anyway Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.

Author Irene Q.

Sep 23, Wed

Micron gained 5%, SanDisk 6.8%, Seagate 4% and Western Digital 3% as the memory complex led the Nasdaq Composite to a second consecutive record close of 27,244.28. But the Dow fell 185 points as JPMorgan, Wells Fargo and Schwab slid more than 3% each — a split tape that says more about positioning than about the economy.

US input costs rose at the fastest pace in four years — the September flash PMI beat is an inflation story, not a growth story US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.

Author Suzie

Sep 24, Thu

US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.

Gold Price Forecast: Gold Drops Below $4,300, Will It Continue to Fall? As of the European session on September 24, gold prices (XAUUSD) extended their correction, dipping below $4,300 intraday to hit a low of $4,262.45. After previously rebounding close to $

Author TradingKey

Sep 24, Thu

As of the European session on September 24, gold prices (XAUUSD) extended their correction, dipping below $4,300 intraday to hit a low of $4,262.45. After previously rebounding close to $

Popular Symbols