Ethereum’s Q1 2024 Earnings Triple Thanks To $1.2B Surge in Transaction Fees
Ethereum is fee-ling the earnings boost. Unlike bitcoin, which serves as digital gold, Ethereum’s network collects and burns transaction fees with each transaction, operating similarly to payment giants like Visa or Mastercard, but decentralized. If it were a business, it would rank among the most profitable software companies — boasting a 45% profit margin, according to venture capitalist Tomasz Tungus.
- Closing out Q1 2024, Ethereum raked in an impressive $1.17B in fees — leading to a surge in net profits of ~$370M.
- With a current market cap of nearly $350B, Ethereum stands as large as Salesforce and seven times larger than Snowflake.
The Robin to Batman: Over the past year, bitcoin has risen nearly 115% while Ethereum trails at a 66% increase. Bitcoin’s growth is attributed to its halving and the introduction of spot bitcoin ETFs, which have witnessed $13.6B in inflows as of April. But Robin may soon be getting its own spin-off — that is, if US regulators will allow it. The Securities Exchange Commission has until May 23 to approve a batch of spot Ether ETFs — but few in the industry are expecting the green light. CoinFund’s President, Christopher Perkins, told Blockworks — “I’m 100% sure that it gets approved; I’m not 100% sure when.”
