Crypto: Ethereum reigns supreme over layer 1 blockchains

Overall, the 3e Quarter 2023 was particularly profitable for layer 1 crypto platforms like Ethereum. The latter alone recorded most of the income generated by these platforms at the end of this period.

91% of layer 1 crypto platform revenue, provided by Ethereum

Crypto data provider Messari recently published a study regarding the revenue generated by layer 1 blockchains at the end of 3e quarter 2023. It shows a very clear domination of Ethereum.

According to Messari, Ethereum accounted for almost 91% of the $491.5 million in revenue generated by layer 1 blockchains, during this period. A result which contrasts with the performance of the platform year-on-year.

Indeed, Ethereum is experiencing a 47.3% drop in its crypto revenues compared to the 3rd quarter of 2022. But the situation does not prevent it from maintaining its leading position within layer 1 blockchains.

Overall, Messari notes that only two networks are seeing a year-over-year decline greater than Ethereum. These include Avalanche which has a decline rate of 58.1% and Polygon which is experiencing a 55.6% decline in revenue.

Ethereum maintains its leading position on layer 1 blockchains

Data on overall revenue of layer 1 crypto platforms

Analyzing the overall crypto landscape, Messari reveals that the total revenues of the 17 Layer 1 (L1) networks she examined have fallen. A drop that it estimates at 46.7%, representing a significant loss of $491.5 million. At the same time, the collective market capitalization of these L1 networks fell 9.8%, ending the quarter at $272.6 billion. Ethereum’s unwavering dominance throughout this period highlights its resilience in the face of challenges.

According to Messari alone, the Aptos and NEAR networks experienced positive results, thus being notable exceptions to the general trend. As a result, Aptos experienced exceptional revenue growth of 160% compared to the previous quarter. The NEAR network recorded the second highest growth rate at 56%.

Surprisingly, despite its substantial revenue share, Ethereum is outperformed in terms of average daily transactions (ADT). Its throughput of one million crypto transactions per day places it in fifth place. Largely behind the 3.5 million ADT of BNB Chain, 17 million of WAX and 24.7 million of Solana which leads the dance.

However, Ethereum has retained its dominance when it comes to decentralized finance (DeFi). Indeed, the total value blocked (TVL) of the crypto platform constitutes 82.4% of the 31.9 billion dollars mobilized by this sector. This reaffirms Ethereum’s central role in the evolving decentralized finance landscape.

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