Ethereum continues to lead the decentralized application (dApp) sector by a wide margin, generating $1.021 billion in DApp fee revenue in the first quarter of 2025, according to data from Token Terminal. The figure marks Ethereum’s most profitable quarter to date, further reinforcing its position as the top blockchain for decentralized finance (DeFi), NFTs, and Web3 applications.
Ethereum’s Q1 Performance Highlights Network Utility
Total DApp Fees (Q1 2025): $1.021 billion
Ethereum remains the undisputed leader, commanding the lion’s share of revenue from on-chain applications such as Uniswap, Aave, OpenSea, and various GameFi and social platforms.
Trailing behind:
Base (Coinbase Layer-2): $193 million
Arbitrum (Layer-2 Rollup): $73.8 million
Avalanche C-Chain: $27.68 million
These figures underscore Ethereum’s dominance not just in value locked, but in real economic activity, with high user engagement and transaction volumes translating directly into network fees.
Ethereum vs. Competitors: The Revenue Gap Widens
While Base continues to gain traction, largely supported by Coinbase integrations, its Q1 fee revenue is less than 20% of Ethereum’s, despite aggressive ecosystem growth. Arbitrum, the third-largest by fee revenue, maintains a strong developer base but faces challenges in scaling usage to Ethereum’s levels.
Avalanche’s C-Chain ranks fifth, with under $30 million in dApp fees, signaling slower traction despite new partnerships in gaming and DeFi.
Why Ethereum Continues to Dominate
Ethereum’s continued lead is driven by:
A mature developer ecosystem
Dominance in DeFi protocols and NFT marketplaces
Broad institutional support and infrastructure integrations
A robust and secure Layer-1 foundation despite high gas fees
As Ethereum Layer-2 scaling solutions like Optimism, zkSync, and Base continue to mature, overall usage is increasing—but mainnet Ethereum still captures the majority of fee-based economic activity, according to Bitcoin.com
