Ethereum has noted a significant decrease in blob fees revenues, raising concerns about the network's future.
Staggering Revenue Drop
For the week ending March 30, 2025, Ethereum generated only 3.18 ETH (approximately $6,000), marking a 73% decrease from the previous week. This also represents a drop of over 95% compared to blob revenues from the week of March 16, 2024, when fees exceeded 84 ETH. This drop illustrates the economic hardships faced by the network after the Dencun upgrade.
Impact of Dencun Upgrade
Launched in March 2024, the Dencun Upgrade relocated transaction data from layer 2 (L2) to temporary “blobs” stored off-chain, aimed at reducing costs for users. However, this migration has also led to a drastic reduction in revenues generated by blob fees, on the order of 95%, according to asset manager VanEck.
Possible Solutions for the Future
The drop in revenues raises concerns about Ethereum's dependence on L2 scaling solutions for transaction processing capacity. The network's profitability model appears increasingly fragile. However, the network is preparing its Pectra upgrade, which could radically change how blob space is allocated, aiming to boost scalability and capture a larger market share.
The fall in blob fees revenue highlights challenging strategic choices, particularly its reliance on L2 solutions. Whether Ethereum remains a viable long-term investment is yet to be determined.
