Key Takeaways
Ethereum’s August revenue fell 44% to $14.1M, down from July’s $25.6M.
Network fees slid 20% to $39.7M, continuing a post-Dencun downtrend.
ETH price hit an all-time high of $4,957 on Aug. 24, up 240% since April.
Debate grows over Ethereum’s fundamentals as Wall Street interest rises.
Ethereum Revenue Falls Despite Price Surge
Ethereum’s network revenue fell sharply in August, even as Ether (ETH) notched a new all-time high. According to Token Terminal, ETH revenue — derived from burned network fees — totaled $14.1 million, a 44% decline from July’s $25.6 million.
Network fees also dropped by 20% month-over-month, sliding from $49.6 million to $39.7 million.
The decline comes despite ETH’s 240% rally since April and its record price of $4,957 on Aug. 24.
Impact of the Dencun Upgrade
Ethereum fees and revenue have been in structural decline since the March 2024 Dencun upgrade, which slashed transaction costs for layer-2 networks that settle on Ethereum.
While the upgrade boosted adoption and scalability, it also reduced fee income for the base layer, sparking debate over Ethereum’s long-term revenue model.
Critics argue that dwindling fees undermine Ethereum’s sustainability as a layer-1 platform. Proponents counter that Ethereum remains the backbone of Web3 infrastructure, with scaling ecosystems driving broader adoption.
Institutional Spotlight on Ethereum
Despite fee pressure, Ethereum continues to attract institutional interest in 2025.
Etherealize, a PR and advocacy firm promoting Ethereum to public companies, closed a $40 million raise in September.
Matt Hougan, CIO of Bitwise, highlighted Ethereum’s yield appeal:
“If you take $1 billion of ETH and stake it, you’re generating earnings. Investors are used to companies that generate earnings.”
Staking has become a key pitch to Wall Street firms, allowing corporations to earn yield while supporting Ethereum’s security.
Ethereum revenue is shrinking even as ETH price surges, raising questions about sustainability. Yet growing institutional adoption and staking demand suggest Ethereum’s evolving fundamentals could support its next growth phase.
