Ethereum's revenue from blob fees on L2 chains reached a new low in 2025, prompting questions about the future of the platform's scaling model.
Decline in Blob Fee Revenue
According to Etherscan, for the week ending March 30, Ethereum earned only 3.18 ETH from blob fees, approximately $6,000 US dollars as of April 1. This marks a 73% drop from the previous week and over a 95% decline from the week ending March 16.
Impact of the Dencun Upgrade
In March 2024, the Dencun upgrade moved L2 transaction data to temporary offchain 'blobs,' reducing costs for users but also decreasing fee revenue for Ethereum by as much as 95%, according to VanEck.
Challenges for Ethereum Scaling
Ethereum's ongoing struggle to earn significant income from blob fees highlights concerns about the network's scaling model, which heavily relies on L2 for transaction throughput. The future revolves around its effectiveness as a data availability engine for L2s.
Despite challenges with blob fee revenue, Ethereum's economics continue to evolve. The upcoming Pectra Upgrade aims to change blob space allocation significantly.
