Ethereum continues to lead the blockchain space in fee earnings despite the Dencun upgrade and challenges within the Ethereum Foundation.
Ethereum's Resilience Amid Dencun Upgrade
In 2024, Ethereum earned $2.48 billion in fees, remaining the highest-earning blockchain, surpassing Tron and Bitcoin. The Dencun upgrade, aimed at reducing transaction costs on Layer 2 networks, did not negatively impact Ethereum’s revenue. CoinGecko analyst Lim Yu Qian commented: "This was also Ethereum’s highest earning quarter in the last two years, driven by increased onchain activity amid widespread airdrop programs."
Ethereum Foundation Faces Scrutiny
Despite network successes, the Ethereum Foundation is under scrutiny for its management. Vitalik Buterin recently announced leadership changes within the foundation, raising concerns among some community members. Ethereum core developer Eric Conner announced his departure after Buterin dismissed calls for a leadership overhaul, sparking further debate about the foundation's future.
Growing Concerns Over Ethereum Foundation’s Governance
The controversies surrounding the Ethereum Foundation are fueled by concerns over its governance model and financial practices. The foundation, holding about $800 million in Ether, is criticized for a lack of transparency in budget decisions. Early Ethereum supporter Bob Summerwill stated: "There is no real clarity on how the EF works, what its governance model is, or how decisions are made."
Despite internal challenges, Ethereum continues to show strength and stability in the blockchain market, maintaining significant fee revenue and innovations in the L2 protocol space.
