9-9-2025 – Ethereum network revenue dropped to $14.1 million in August, falling 44% from July’s $25.6 million despite ETH climbing to near all-time highs of $4,957, according to Token Terminal data.
The revenue decline stems from reduced network fees, which fell 20% month-over-month from $49.6 million to $39.7 million. The disconnect highlights ongoing challenges from the March 2024 Dencun upgrade, which slashed transaction costs for layer-2 networks that settle on Ethereum’s mainnet. While beneficial for users, the upgrade significantly reduced fee collection for the primary network, with monthly figures remaining depressed since implementation.
The trend has intensified debates over Ethereum’s fundamental value proposition. Critics view declining mainnet activity and revenue as sustainability concerns, questioning long-term viability if the base layer generates less economic activity. Supporters counter that Ethereum’s role as infrastructure for layer-2 solutions and decentralized finance remains intact, arguing that reduced fees demonstrate the network’s evolution toward scalability.
Meanwhile, institutional adoption continues gaining momentum in 2025. Ethereum advocacy firm Etherealize recently secured $40 million in funding to promote corporate ETH adoption. Bitwise CIO Matt Hougan noted that institutional investors are particularly attracted to ETH’s staking yields, which provide traditional earnings models that corporate treasuries understand.
