Ethereum can now rub its hands. The first quarter was a success. The number of non-empty ETH wallet addresses increased by 22% compared to Q4 2023, to over 118 million. If 9.7 million new addresses were created this first quarter of 2024, the number of ETH available on exchanges reached its historic low since 2016. At the same time, the number of ETH stored in smart contracts reached its historic peak. Even more interesting, the network achieved financial performance that exceeded all expectations. We talk about it in this article.
155% growth in Ethereum revenue
In addition to having crossed the milestone of 1 million validators since March 28, 2024, Ethereum impresses with its financial performance in Q1 2024. Despite the difficult context in which it found itself, the second blockchain in the world after Bitcoin shows signs of strong growth.
During the first quarter of 2024, transaction costs on Ethereum increased by 80% compared to the previous quarter. The network has also faced stiff competition from some blockchains like Cardano. However, the first quarter 2024 report on Ethereum shows very good performance.
Indeed, according to the Q1 network performance report, Ethereum revenues reached $365 million. This represents a 200% increase from its Q4 2023 revenue of $123 million. In other words, Ethereum tripled its revenue quarter over quarter! This is also an increase of 155% year-on-year (compared to Q1 2023). To what do we owe this performance?
What is the main driver of Ethereum growth in Q1 2024?
Ethereum's impressive performance in Q1 2024 is linked to several factors, including DeFi. Indeed, the rise of DeFi applications in 2024 has boosted the activity of the DeFi ecosystem. On-chain data also reveals a total of 107 million transactions in Q1 2024 for an average of 1.15 million daily transactions.
Furthermore, the total value locked in Ethereum DeFi reached $55.9 billion in Q1 2024, an increase of 86% compared to Q4 2023. User engagement with Proof of Ethereum staking has also remained very strong, because there is around 32 million ETH in stake currently, or almost 26% of the total ETH supply.
With these indicators, Ethereum seems capable of offering the crypto market the catalyst it needs in 2024, if the BTC halving does not produce the expected effects.
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