Ethereum DeFi Fee Analysis

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 fees from DeFi ecosystems. Base, ZKsync Era, and Arbitrum One follow in the rankings, with $39.53 million, $37.69 million, and $34.60 million in DeFi fees respectively.

Weekly DeFi Fees

The data indicates that Ethereum Layer 1 remains the leader in weekly DeFi fees, accumulating slightly over $1 million. Base and Arbitrum One are in second and third place, with weekly fees of over $179,000 and $22,000 respectively. The platform highlighted the significant gap between Ethereum and other chains regarding fees.

DeFi Fee Trends

Ethereum’s current weekly DeFi fees are lower than the daily highs recorded in may 2023 and March 2024, reaching just over $170,000 on February 15, compared to peaks of over $11 million in May 2023. Other chains have also seen a significant drop, with many posting zero daily fees.

CeFi vs DeFi Fees

Ethereum’s CeFi transaction fees are considerably lower than its DeFi fees, totaling just over $635 million all-time. As of February 15, weekly CeFi transaction fees were higher, at a little over $1.9 million.

Transaction Counts

DeFi transaction counts on Ethereum Layer 1 lag behind Base, ZKsync Era, and Arbitrum One, with over 149 million all-time transactions on Ethereum. In comparison, Base has over 352 million, ZKsync Era has around 150 million, and Arbitrum One has 155 million transactions.

Vitalik Buterin’s Proposal

Vitalik Buterin recently proposed scaling Ethereum Layer 1 tenfold amid decreased activity, emphasizing the need for more gas limits to accommodate over 120 million Ethereum users weekly. This scaling aims to decrease gas fees, enhance network security, and improve rollups support. Buterin expressed concerns about potential censorship on Layer 2 due to centralized sequencers.

Scaling Challenges in L2s

Amid these developments, Ethereum Layer 2 struggles with declining gas fees and user engagement, with gas fees dropping below 1 Gwei, the lowest in five years. Qiao Wang from Alliance DAO has voiced skepticism towards the capabilities of Ethereum’s Layer 2s, suggesting that building on Solana might be more advantageous due to perceived scalability issues on Ethereum despite its robust ecosystem.