Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Messari Researcher Warns Ethereum May Be Weakening as Network Revenue Falls Despite Strong Q3 Rally

Messari Researcher Warns Ethereum May Be Weakening as Network Revenue Falls Despite Strong Q3 Rally

CoinotagCoinotag2025/09/07 17:05
By:Marisol Navaro

  • Ethereum revenue fell to $39.2M in August — the lowest since January 2021.

  • ETH price is up strongly in Q3, but on‑chain revenue and fee income have not followed.

  • Analysts debate metrics: active addresses and throughput trend up, but revenue decline points to weaker user monetization.

Ethereum revenue collapse: August $39.2M shows on-chain activity lagging price gains. Read COINOTAG analysis for clear insight and next-step guidance.

What is causing Ethereum’s revenue collapse?

Ethereum revenue collapse refers to the sustained drop in network fee and protocol revenue, driven by lower fee extraction per transaction and shifting user activity. August revenue hit $39.2M, a 75% decline from August 2023 and 30% below August 2024, signaling reduced on‑chain monetization despite higher ETH prices.

How does the ETH price rally coexist with falling network revenue?

Price gains in ETH do not automatically translate to higher network revenue. The recent Q3 rally (ETH up ~73% this quarter) reflects market sentiment and capital flows, while revenue depends on fees, transaction composition, and user behavior.

Key factors reducing revenue include lower median gas fees, scaling to Layer‑2s that shift fees off mainnet, and a rise in transactions that are low-fee or batched. AJC, a researcher at Messari, flagged the revenue collapse as a sign of declining network monetization, while other Messari analysts noted small positive trends in active addresses and throughput.

Ethereum reported revenue — comparative overview Period Reported Revenue Change vs August (current)
August (current) $39.2M
August 2024 ≈ $56.0M ~30% higher
August 2023 ≈ $156.8M ~300% higher (75% decline to current)
January 2021 Higher than $39.2M (exact value not stated) Reference floor — current is lowest since Jan 2021

Why do some analysts call metrics misleading?

AJC has argued that common on‑chain indicators like active addresses and throughput can be “meaningless statistics” if they do not correlate with fee generation or marginal user demand. Other analysts counter that improved throughput and rising active addresses indicate organic network use that may precede revenue normalization.

Stablecoin supply growth alone does not drive Ethereum revenue unless velocity (frequency of transfers and value exchanged) rises. Continued Layer‑2 scaling can reduce mainnet fee revenue even as it increases overall ecosystem capacity.


Frequently Asked Questions

What does the $39.2M August revenue mean for ETH holders?

The $39.2M figure indicates weaker fee capture on mainnet even as ETH price rises. Holders should distinguish between market price appreciation and on‑chain revenue dynamics when assessing network health.

How should investors read debates from data firms and researchers?

Listen to multiple expert views. AJC at Messari highlights monetization risks; other Messari analysts point to improving active addresses. Combine quantitative revenue data with qualitative assessments of demand and Layer‑2 adoption.

Key Takeaways

  • Revenue drop is real: August $39.2M is the lowest recorded since Jan 2021 and represents a major year‑over‑year decline.
  • Price ≠ fee income: ETH’s Q3 price rally has not restored protocol fee revenue; different drivers influence price and on‑chain monetization.
  • Metrics matter contextually: Active addresses, throughput, stablecoin supply, and Layer‑2 flows must be interpreted together to assess network demand.

Conclusion

This COINOTAG analysis shows an Ethereum revenue collapse that contrasts with a strong Q3 price rally. The divergence underlines the difference between market value and on‑chain monetization. Monitoring fee trends, Layer‑2 migration and transaction composition will be essential to judge whether revenue can recover. For continuing coverage and updates, follow COINOTAG reporting.

In Case You Missed It: XRP Could Rally Toward $4.80 as $2.47 Support Holds and ETF Hopes Boost Institutional Interest
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Interviews for 11 Federal Reserve Chair candidates begin today—how will Trump choose?

The list of candidates for the Federal Reserve Chair has been announced, featuring 11 elites from various political and business sectors. The market is paying close attention to the independence of monetary policy and the candidates' stances on crypto assets. Summary generated by Mars AI Model. The accuracy and completeness of this generated content are still being iteratively improved.

MarsBit2025/09/07 18:19
Interviews for 11 Federal Reserve Chair candidates begin today—how will Trump choose?