Ethereum fees poised for rebound amid L2, blob uptick – Mik4mob
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Ethereum fees poised for rebound amid L2, blob uptick

In November, L2s have been posting some 3x more transaction data each day to the mainnet than they did in March.

Ethereum’s network revenues are poised to rebound as surging activity on layer-2 (L2) scaling networks drives demand for data

storage, according to cryptocurrency researchers and onchain data.

In November, Ethereum L2s have been posting upward of three times more transaction data each day to the mainnet than they did in March, according to data from Dune Analytics.

Ethereum’s revenues dropped by as much as 95% after the network’s March Dencun upgrade migrated L2 transaction data to temporary

offchain stores called “blobs” in a bid to cut costs for users, according to data from asset manager VanEck.

“ETH Fees Were Weak Due to Lack of Blob Revenues as L2s Have Not Filled Available Capacity,” Matthew Sigel, VanEck’s head of digital asset research, said in a Nov. 1 post on the X platform.

“There is Some Evidence this is Changing, thanks to Base, Scroll and World Chain,” Sigel said, referring to three popular L2s.

In September, Sigel said he expects Ethereum to generate up to $66 billion in annual free cash flow by 2030, driving spot Ether’s price as high as $22,000 per Ether
ETH
tickers down
$2,948.18
token.

His estimate reflects anticipated value accrual to ETH holders from transaction fees as Ethereum processes a growing portion of the world’s transactions.

“Ethereum processed roughly $4 trillion in settlement value over the last year and another $5 trillion in stablecoin transfers annually. So this is far bigger than PayPal and is beginning to approach networks like Visa,” Sigel said.

Since launching in 2015, Ethereum has generated $3 billion in fees (denominated in ETH), Sigel said.

Other ETH value accrual mechanisms include “burning” — or permanently removing from circulation — a portion of transaction

fees and emitting new ETH to reward stakers, who post ETH as collateral to secure the network.

On Nov. 6, ETH prices spiked 10% after crypto-friendly Republican Donald Trump prevailed in the United States presidential elections.

Meanwhile, US spot Ether exchange-traded funds (ETFs) saw net inflows of $52.3 million, the highest in six weeks.

Trump’s victory in the presidential election could pave the way for more crypto investing products to hit the US markets, including the

first staked ETH ETFs, according to Edward Wilson, an analyst at Nansen.

Other protocols are competing against Ethereum in data availability. They include Celestia, EigenDA and Avail, among others.

By Michael Emad

My name is Michael Emad from Egypt, I am 20 years old. I will try as much as possible to review the latest mobiles and iPhone required to review them before buying from the market.

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