TechFlow news, January 1st, according to CryptoSlate, Ethereum set a historical record for transaction volume in 2025, but simultaneously lost over $100 million in transaction fee revenue. Previously, Layer-2 networks contributed $113 million (41% of its total revenue) to Ethereum in 2024, but this figure plummeted to just $10 million (less than 10%) in 2025. This change primarily stems from the "Dencun" upgrade reducing transaction costs, leading Layer-2 networks to retain more profits.
The Base network developed by Coinbase became the biggest beneficiary, with annual revenue reaching $75 million, accounting for nearly 60% of the entire Layer-2 industry's revenue. Meanwhile, despite ETH prices falling by 10% throughout the year, Ethereum's dominance in the DeFi market rose to 64%, indicating that institutional investors place greater emphasis on its security and legal clarity.
