While Ethereum's focus on long-term adoption shows no sign of diminishing, the blockchain's network growth has taken a hit. Will this threaten ETH’s growth in the coming days?

  • The Ethereum protocol layer generates a significant amount of FriendTech’s revenue.

  • Why the protocol layer’s ability to mine the value of WEB3 highlights ETH’s long-term potential.

You may have heard the phrase “the cryptocurrency market is still in its early stages.” But have you ever thought about how successful Ethereum [ETH] will be when the market fully realizes its potential?

Ethereum remains focused on the long-term goal of mass adoption. Achieving this goal could lead to strong growth from a revenue perspective. The reason why expectations are so high for Ethereum is because the layer 1 network was built to ensure value in WEB3. Unlike the WEB2 approach which primarily provides value to the application layer.

To demonstrate how Ethereum’s protocol layer can benefit, WEB3 Academy conducted an analysis of how blockchains can benefit from Base and FriendTech. The latter is a WEB3 social application, one of the fastest growing projects, running on the Base network. However, the latter relies on Ethereum to process transactions.

According to WEB3 Academy’s detailed analysis of FriendTech’s revenue share, Ethereum earns significant revenue.

The same analysis suggests that Ethereum dApps are likely to grow exponentially over the next 10 years. If so, Ethereum holders and stakeholders will reap the benefits over time. In other words, ETH’s long-term prospects look quite promising, especially if it achieves mass adoption.

Assessing key Ethereum growth metrics

As expected, the supply of ETH held by top addresses has been growing steadily over the past 12 months. In fact, it's currently at its highest point so far this year. In contrast, slower growth in online primarily reflects overall short-term headwinds across the market. At the time of writing, Ethereum network growth figures are at their lowest levels in the past 12 months.

Please note that Ethereum's network growth depends on current market conditions. In situations of high market volatility, especially during bullish periods, it tends to be high, which also tends to attract more projects.

Speaking of projects, assuming all factors remain constant, more and more dApps should theoretically offer higher fees over time. However, it typically does not increase linearly, as fees are affected by high and low fluctuations in network activity.

For example, Ethereum’s fees in May were the highest in the past 12 months. The high in May generated daily fees of approximately 16,438 ETH, in stark contrast to the 2462 ETH generated in the past 24 hours.