Ethereum Revenues Fall 44% in August Despite All-Time High, Raising Questions about Network Fundamentals

Despite Ethereum (ETH) hitting new all-time highs, network revenues have plummeted, highlighting the financial sustainability of Ethereum as a Layer 1 blockchain.
This has sparked discussions about the blockchain data platform Token Terminal.
According to the Ethereum Terminal, August Ethereum revenue totaled $14.1 million, down from 25% in July.
This represents a roughly 44% decrease from $600,000. This revenue represents the distribution of network fees attributed to Ethereum holders through token burns. During this same period, ETH prices have surged 240% since April.
The price rose sharply, hitting an all-time high of $4,957 on August 24. Network fees also showed a downward trend, falling by about 20% from about $49.6 million in July to $39.7 million in August.
This is interpreted as the result of a significant drop in transaction costs since the Dencun upgrade in March 2024.
The Amlayer 2 expansion network has significantly reduced the cost of recording transactions on the mainnet. According to reports, this trend has led to conflicting assessments of Ethereum's economic structure.
Some critics question its sustainability, citing weak profitability and fundamentals, while supporters argue that Ethereum remains the backbone of the future financial system.
This year, Ethereum has attracted the attention of Wall Street and institutional investors, marking a new turning point. In particular, Etherealize is an Ethereum platform for listed companies.
In September, the company announced it had raised $40 million for promotion and consulting.
"Institutional investors are used to assets that generate income," said Ethereum's staking revenue model, highlighting the potential for billion-dollar ETH to be used in corporate finance.
"This is a big attraction for traditional investors," he explained.
In fact, listed companies and institutional investors are using Ethereum staking to
We are actively exploring ways to participate in work validation and convert the associated rewards into revenue. This is a step aside from price appreciation, and is a key factor in determining the role Ethereum will play within the financial system.
This has led to new discussions on the issue.