Ethereum lost over $100 million in fees this year, and one corporate giant kept the profit
Ethereum's utility soared in 2025, but fee revenue dropped over $100 million due to Dencun upgrades, benefiting Layer-2 operator Coinbase's Base.Summary
In 2025, the Ethereum blockchain experienced record operational success, yet the price of ETH declined 10% year-to-date, highlighting a shift in network economics. The Dencun upgrade successfully lowered transaction costs for users by drastically reducing the fees Layer-2 networks pay to the mainnet for security. While Layer-2 networks generated $129.17 million in revenue, they only paid about $10 million to Ethereum, meaning Ethereum sacrificed over $100 million in potential fee revenue, weakening the token's deflationary pressure.
This revenue shift has consolidated profit among Layer-2 operators, with Coinbase's Base network capturing nearly 60% of the sector's total revenue, earning over $75 million. This concentration means significant value generated by the ecosystem is now accruing to a corporate entity rather than broader network participants. Despite the token's lagging price performance, institutional adoption remains strong, with Ethereum securing about 64% of the Total Value Locked (TVL) in DeFi, suggesting a "flight to quality."
Investors face uncertainty as the direct link between high network usage and token price is disrupted in this low-fee environment. Supporters argue this transition secures Ethereum's role as the global settlement layer, which will eventually drive long-term value to the token.
(Source：CryptoSlate)