Ethereum’s Falling Fees Do Not Mean Falling Use, Bitwise Finds

Ethereum (ETH) network fee revenue fell 51% year-on-year to roughly $64 million in the second quarter, even as transaction activity rose and staking climbed to a record, according to a new Bitwise report.

The decline reflected cheaper and more abundant blockspace rather than fading interest, the asset manager said. Measured in ETH, quarterly revenue actually rose for the first time in over a year.

Ethereum Activity Rises Even as Revenue Drops 51%, Bitwise Finds

Ethereum revenue reached about $131 million in the second quarter of 2025. A year later, it stood near $64 million, a sharp drop in dollar terms.

Usage moved the other way. Ethereum processed 203.9 million transactions in the quarter, up from 121.1 million a year earlier. Throughput rose to 26 transactions per second, from 15. This came as Ethereum's block gas limit increased to 60 million.

"The divergence between revenue and activity is the theme of the quarter. While fees fell, usage climbed," the report read.

Researchers at Bitwise attributed the gap to protocol design. Networks made blockspace cheaper and more abundant, enabling users to pay less per transaction.

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