Ethereum January 2025 Update

Fundamentals

Furthermore, along with the decreasing price, Ethereum’s Real Economic Value (REV), which combines transaction fees and tips paid for transaction execution, saw a 29% decrease MoM to $167M ($234M in December). This broke the upward trend Ethereum has been experiencing since August and is the lowest REV since October 2024. Below we show Ethereum’s monthly REV over time. 

This downturn in REV happened in the same month that Solana recorded its highest REV of $552M, over three times more than Ethereum. Since the introduction of blobs, Ethereum has been gradually losing REV market share to Solana. Below we show the pair’s REV since January 2024. 

A breakdown of Ethereum’s REV shows that the vast majority (~70%) comes from Base fees while ~25% stems from priority fees and tips. Notably, blob fees reached as high as 10% of REV albeit for only one day in December, however, blob fees tend to average around ~2% on average. Regardless, the relative importance of blobs continues to grow as more data is demanded by L2s. Below we show the daily breakdown of REV on Ethereum since December 2024.