The Ethereum network has seen its primary revenue stream from layer-2 (L2) scaling chains—blob fees—plummet to the lowest weekly levels in 2025, based on Etherscan data.
Blob Fee Revenue Decline
In the week ending March 30, Ethereum generated just 3.18 ETH (~$6,000) from blob fees—a 73% drop from the previous week and a 95%+ decline from the March 16 peak of 84 ETH. This downturn highlights volatility in Ethereum’s post-Dencup economic model.
Key Factors Behind the Drop:
- Dencun Upgrade Impact: The March 2024 migration of L2 data to offchain "blobs" slashed user costs but cut Ethereum’s fee revenue by up to 95% initially.
- Uneven L2 Adoption: Blob fee income peaked at ~$1 million in November 2024 before recent sharp declines, per Dune Analytics.
- Scaling Challenges: Ethereum’s reliance on L2s for throughput raises questions about sustainable revenue as blob capacity remains underutilized.
👉 Explore how Ethereum’s upgrades are reshaping blockchain economics
Post-Dencun Economic Adjustments
Experts note Ethereum’s economics are in flux. The upcoming Pectra Upgrade aims to optimize blob space allocation, potentially stabilizing fee dynamics.
"ETH fees were weak due to lack of blob revenues as L2s haven’t filled available capacity."
— Matthew Sigel, VanEck (2024)
Long-Term Projections
- 22,000x Growth Needed: L2 volumes must surge to offset pre-Dencun fee revenues, per The DeFi Report.
- Strategic Shift: Ethereum prioritizes scaling over immediate fee revenue, per The Daily Gwei’s Sassal.
FAQ
Q: Why did Ethereum’s blob fees drop so sharply?
A: Reduced L2 demand and Dencun’s cost-cutting design temporarily suppressed fees.
Q: Will blob fees rebound?
A: Yes—growth depends on L2 adoption and upgrades like Pectra optimizing blob utilization.
Q: How does this affect Ethereum’s scalability?
A: It underscores the need for balanced L2 expansion and sustainable fee models.
👉 Stay updated on Ethereum’s evolving ecosystem
Data sources: Etherscan, Dune Analytics, VanEck
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