Ethereum dominates the blockchain industry, earning $2.48 billion in fees in 2024 despite the Dencun upgrade.
Ethereum's Resilience Amid Dencun Upgrade
Ethereum maintained strong fee earnings in 2024 despite the Dencun upgrade aimed at reducing transaction costs on Layer 2 (L2) networks. According to the CoinGecko report dated January 21, Ethereum earned $2.48 billion in fees, surpassing Tron and Bitcoin. This represents a 3% increase compared to 2023. Analysts had predicted that the Dencun upgrade might negatively impact the network’s revenue and Ether’s price, but findings contradicted these assumptions.
Leadership Changes in Ethereum Foundation
The Ethereum Foundation faced scrutiny over its management and leadership policies. Recently, Ethereum co-founder Vitalik Buterin announced changes in the EF leadership to enhance communication with the ecosystem. However, there was discontent within the community regarding EF’s direction, especially after developer Eric Conner announced his departure from EF following Buterin's dismissal of leadership overhaul calls. This sparked discussions about the future of EF and its role in the ecosystem's development.
Growing Concerns Over Ethereum Foundation’s Governance
The Ethereum Foundation is under controversy due to concerns regarding its governance model and spending practices. EF holds around $800 million worth of Ether but faces criticism over the lack of transparency in fund allocation. Some community members express dissatisfaction with EF’s perceived inefficiency in decision-making and its reliance on Ether sales for operational funding. Critics urge EF to focus on user needs and future planning.
Despite the Dencun upgrade and related challenges, Ethereum continues to dominate the blockchain industry while facing internal leadership and governance challenges within the Ethereum Foundation.
