Ethereum March 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 48% decrease MoM to $37M ($78M in February). This marked the third month in a row of declining REV growth and is the lowest REV since July 2020. Ethereum’s share of REV also fell from ~20% in February to ~18% in March. Below we show Ethereum’s monthly REV over time. 

A breakdown of Ethereum’s REV shows that the relative importance of base fees has been declining since the middle of January and took a noticeable drop at the beginning of February. This is likely because of the increased gas limit combined with a decrease in activity. MEV boost accounted for 40% of Ethereum’s REV for the second month in a row and the largest share ever recorded. Base fees were 20.5% (another low), Blob fees stood at only 0.7% of REV, and priority fees were ~39% (an all-time high post EIP1559). Below we show the daily breakdown of REV on Ethereum since December 2024. 

Ethereum also lost more ground in the data availability market, with its market share declining from 8.7% to 7.5%. This is primarily due to Eclipse posting its data to Celestia as it ramps up for mainnet launch; however, even post-Pectra, when the blob target is raised to six (and a max of nine), Ethereum’s data capacity still won’t suffice to match the demand from all L2s. In fact, it wouldn’t be enough to match the demand from Eclipse (even with blob aggregation). Below we show the DA providers’ market share since December 2023.