Ethereum Aims for $1 Billion Daily Revenue from Data Availability Fees
The cryptocurrency industry is currently facing challenges related to an oversupply of chains and a lack of applications. This situation mirrors the early days of the internet, where excessive investments in infrastructure were criticized.
Key points include:
- Ethereum's approach involves sacrificing execution fees to Layer 2 (L2) solutions, aiming for future profits from data availability fees.
- Ethereum researcher Justin Drake predicts a potential revenue of ~$1 billion per day if transaction speeds reach 10 million transactions per second (TPS).
- Current revenue from Ethereum’s blob gas fees is approximately $272,000, indicating a significant gap between current performance and projections.
- Investment trends show declining valuations for Layer 1 (L1) blockchains, with recent funding rounds ranging from $14 million to $225 million.
- Layer 2 projects are less costly to launch, estimated at $5-$15 million, prompting some L1s to transition to L2 structures.
The long-term viability of numerous blockchain chains remains uncertain, as competition and application development continue to evolve.