Blockchain network Ethereum is poised to achieve an annual revenue of $1 billion, according to a recent report. The report reveals that in the first quarter of 2024, Ethereum generated an impressive income of $365 million, resulting in a 155% increase in quarterly revenue compared to the same period last year. This substantial growth is a significant leap from the $123 million it earned in the fourth quarter of 2023.
Throughout this year, Ethereum has recorded an average daily transaction volume of 1.15 million, slightly higher than last year’s figure of 1.05 million but slightly lower than the 1.25 million average daily transactions in 2021.
Since its launch in 2015, Ethereum achieved its first profitable year in 2023, generating revenue of approximately $623 million. However, this amount was lower than its highest-ever revenue of $9.9 billion in 2021.
Analyst Michael Nadeau attributes this recent success to Ethereum’s transition to a proof-of-stake consensus in September 2022, which resulted in an 80% decrease in token incentives paid to network validators. He also highlights a 58% fee surge experienced by Ethereum since 2017.
Looking ahead, Nadeau predicts that digital assets will outperform other assets in the market. He expects liquidity to significantly increase in the coming years as the United States needs to refinance some of its debt this year. Nadeau notes that the market has already factored in three rate cuts from the Federal Reserve, which should benefit tech stocks and high-quality digital assets.
Nadeau identifies three catalysts that could potentially trigger a bullish trend in the crypto market. These catalysts include the introduction of Bitcoin exchange-traded funds (ETFs) in the United States, the Bitcoin halving event, and the “innovative cycle.” He explains that Bitcoin ETFs will open the door to increased interest in cryptocurrencies due to their widespread accessibility, while the halving event has historically led to a surge in Bitcoin’s performance.
Regarding the innovation cycle, Nadeau suggests that it will drive venture investment and spark a new wave of retail interest in the market. He also mentions the relationship between Bitcoin and Ethereum, noting that Bitcoin experiences its bullish trend at the beginning of the market cycle, while Ethereum and other altcoins typically experience it towards the end. Altcoins have outperformed Bitcoin during their respective bullish phases in the last two cycles.
