Ethereum's on-chain transaction volume and DeFi market share reached record highs in 2025, yet mainnet fee revenue saw a significant decline. Layer-2 networks generated approximately $129 million in total revenue, with only $10 million paid to the Ethereum mainnet for settlement and security. The remaining $119 million was retained by Layer-2 operators, indicating Ethereum missed out on over $100 million in potential fee income. Coinbase's Base network contributed over $75 million, accounting for nearly 60% of Layer-2 revenue.
The Dencun upgrade, which reduced fees, led to a 10% drop in ETH's price over the year, weakening its deflationary effect. Despite this, Ethereum's share of total value locked (TVL) in DeFi increased to about 64%.
Ethereum's On-Chain Volume Hits Record High, Mainnet Fee Revenue Declines
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