The Ethereum network's primary revenue stream from layer-2 (L2) scaling solutions—"blob fees"—has reached its lowest weekly levels in 2025, according to Etherscan data.
Key Metrics Show Sharp Decline
- Weekly Earnings: Just 3.18 ETH (~$6,000) from blob fees for the week ending March 30.
- Drop from Previous Week: 73% decrease.
- Peak Comparison: Over 95% decline from the week ending March 16, which saw 84 ETH in blob fee revenue.
This downturn follows Ethereum’s Dencun upgrade in March 2024, which shifted L2 transaction data to temporary offchain storage ("blobs"). While the upgrade reduced user costs significantly, it also slashed Ethereum’s fee revenue—initially by up to 95%.
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Challenges in Post-Dencun Adaptation
Matthew Sigel of VanEck noted:
"ETH fees were weak due to lack of blob revenues as L2s have not filled available capacity."
Growth in blob fees has been inconsistent:
- November 2024 Peak: Nearly $1 million weekly.
- Recent Weeks: Sharp decline, with income now at fractional levels.
Scaling Model Under Scrutiny
Ethereum’s reliance on L2s for transaction throughput raises questions about long-term revenue sustainability. Analysts highlight:
- Data Availability Focus: "Ethereum’s future hinges on its efficiency as a data engine for L2s," says arndxt, Threading on the Edge author.
- Volume Requirements: Michael Nadeau estimates L2 transactions would need a 22,000x increase to match pre-Dencun fee revenues.
Future Upgrades: Pectra on the Horizon
Ethereum’s Pectra Upgrade, slated for 2025, aims to redefine blob space allocation. Sassal of The Daily Gwei summarizes the strategy:
"Scale Ethereum aggressively—fee revenue can follow later."
FAQs
Q: Why did blob fees drop so sharply?
A: The Dencun upgrade shifted fee structures, prioritizing L2 cost reduction over immediate network revenue.
Q: Will blob fees rebound?
A: Growth depends on L2 adoption—current usage remains below capacity.
Q: How does Pectra address this?
A: It optimizes blob storage allocation to balance scalability and revenue.