The Ethereum network’s primary revenue stream from layer-2 (L2) scaling solutions—blob fees—has plummeted to its lowest weekly levels in 2025, as reported by Etherscan.
Key Data Highlights
- Weekly Blob Fees: Just 3.18 ETH (~$6,000 USD) for the week ending March 30.
- Decline: A 73% drop from the prior week and over 95% from March 16’s peak of 84 ETH.
Post-Dencun Upgrade Challenges
Ethereum’s Dencun upgrade in March 2024 shifted L2 transaction data to temporary offchain storage ("blobs"), slashing user costs but also reducing network fee revenue by up to 95% initially.
👉 Explore how Ethereum’s upgrades impact L2 economics
"ETH fees were weak due to lack of blob revenues as L2s have not filled available capacity."
— Matthew Sigel, VanEck (2024)
Uneven Recovery and Scaling Concerns
Blob fee growth remains volatile:
- Peak Revenue: ~$1 million weekly in November 2024.
- Current Struggles: Recent weeks show sharp declines, per Dune Analytics.
Ethereum’s reliance on L2s for scalability raises questions about sustainable revenue models. Michael Nadeau of The DeFi Report estimates L2 volumes would need to surge 22,000x for blob fees to match historic transaction fee income.
Ethereum’s Roadmap: Pectra Upgrade
Scheduled for 2025, the Pectra Upgrade aims to overhaul blob space allocation, prioritizing scalability over immediate fee revenue.
"Scale Ethereum as much as possible—worry about fee revenue later."
— Sassal, The Daily Gwei
FAQs
Q: Why did blob fees drop so sharply?
A: Reduced demand for blob space post-Dencun, coupled with L2s not utilizing full capacity.
Q: Will Ethereum’s fee revenue recover?
A: Long-term recovery depends on L2 adoption and upgrades like Pectra.
Q: How do blob fees impact ETH’s value?
A: Lower fees may attract users but could pressure ETH’s scarcity narrative if revenue stagnates.
👉 Stay updated on Ethereum’s latest developments
Sources: Etherscan, Dune Analytics, VanEck.