Introduction

As blockchain technology continues to evolve rapidly, the sustainability of revenue streams for public blockchains has become a crucial factor in evaluating their long-term growth potential. This report focuses on the current market’s three leading public blockchains—Ethereum, Solana, and Tron. By analyzing their gas fee revenues, on-chain economic activities, and the sustainability of user income and expenditure, it provides a deep dive into the revenue models and sustainability of these blockchains.

According to the latest data from Defilama, over the past 30 days, Ethereum has led with $99.89 million in gas fees, followed by Solana with $46.21 million and Tron with $38.97 million. However, this revenue advantage does not necessarily correlate with market popularity and user activity. Interestingly, in the past six months, Solana has generated more discussion than Ethereum, while Tron has gained widespread recognition in the payments sector, especially due to its low transaction fees.

What’s even more striking is the contrast between gas fee revenue and daily active addresses: Tron leads with 2.1 million daily active addresses, followed by Solana with 1.1 million, while Ethereum lags behind with just 316,000. This discrepancy underscores the complex relationship between gas fee revenue, on-chain economic activities, and the sustainability of user income and expenditure. It also provides a unique angle for analyzing the revenue sustainability of these three major public blockchains.

This report will thoroughly examine the revenue structures of Ethereum, Solana, and Tron, exploring their long-term growth potential and the sustainability of their revenue streams.

Ethereum

Gas Fee Revenue Composition

Ethereum has undergone significant upgrades, including transitioning from Proof of Work (PoW) to Proof of Stake (PoS) and implementing EIP-1559, which have greatly influenced its gas fee structure. The new structure comprises two parts: the base fee, which is automatically burned, and tips, which go directly to validators. The burning mechanism of the base fee is expected to drive ETH into a deflationary state, potentially increasing its value. Additionally, the dynamic adjustment of the base fee helps optimize network resource allocation, while tips provide extra incentives to validators, ensuring network security. This dual structure not only diversifies validator revenue sources, reducing dependence on new coin issuance, but also creates long-term deflationary potential for ETH through the base fee burning mechanism. These changes aim to enhance Ethereum’s economic sustainability and long-term value.

In the past 30 days, Ethereum has burned approximately $47 million worth of ETH through the base fee mechanism. This figure reflects network activity levels and provides insights into the contribution of various on-chain activities to total gas consumption, offering a clearer understanding of the economic impact of different applications and transaction types within the Ethereum ecosystem. The main contributors to the burn volume are shown in the chart below.

Figure 1-1: Ethereum Ecosystem Burn Data

The distribution of gas fees on the Ethereum network reflects both the vibrancy of its ecosystem and the direction of economic value. As shown in the chart, the gas fee burn percentages allow us to identify the key applications on the Ethereum main chain and their relative significance. Decentralized Finance (DeFi) is the dominant force, accounting for 60% of the total, underscoring its pivotal role within the Ethereum ecosystem. Following DeFi are ETH transfers (12%), MEV (Maximum Extractable Value, 8%), and NFTs (Non-Fungible Tokens, 8%), together making up 88% of the network’s gas consumption and representing the primary economic activities on Ethereum. Layer 2 solutions (6%) and smart contract creation (2%) hold smaller portions, which suggests that the current phase of Ethereum’s ecosystem development is in a bit of a “lull.”

Although the Ethereum network is in a relatively quieter phase, the diverse distribution of its gas fee consumption—led by DeFi, along with ETH transfers, MEV, and NFTs—demonstrates the network’s enduring vitality and broad application scope. This diversity provides a strong foundation for the continued growth of Ethereum’s value.

On-Chain Economic Activities

Defi

Decentralized Finance (DeFi) is at the heart of the Ethereum ecosystem, encompassing a wide range of sub-sectors such as decentralized exchanges (DEX), lending platforms, DEX trading bots, stablecoins, derivatives, crypto wallets, and liquid staking derivatives (LSD), among others.

A detailed analysis of Ethereum’s gas burn data reveals that sectors like DEX, stablecoins, DEX trading bots, and crypto wallets are the top consumers of gas, indicating their leading roles and high user activity levels within the current DeFi landscape.

Uniswap（DEX）

Uniswap, the largest decentralized exchange (DEX) in the Ethereum ecosystem, not only offers users efficient on-chain spot trading services but also serves as foundational infrastructure for the DeFi ecosystem, addressing essential needs within the blockchain network.

Over the last 30 days, Uniswap generated $54.23 million in revenue, contributing $8.15 million in gas fees, which accounts for about 17.3% of the Ethereum ecosystem’s total. As shown in Figure 1-2, the most traded pairs on Uniswap are primarily ETH and stablecoins, with speculative meme token trading constituting a very small portion of the total trades. This indicates a healthy ecosystem dominated by standard trading activities.

Figure 1-2: Top Trading Pairs on Uniswap

(Data source:https://app.uniswap.org/explore/pools）

1inch（DEX）

1inch, a leading DEX aggregator in the Ethereum ecosystem, aggregates liquidity from multiple DEXs to offer users the best trading routes and prices, particularly excelling in niche token trading.

1inch has contributed approximately $1.21 million in gas fees within the Ethereum ecosystem, making up 3% of the total.

The DEX sector as a whole constitutes over 40% of the DeFi field and more than 25% of the Ethereum ecosystem, highlighting DEX’s status as the most active sector on Ethereum. Mainstream DEX projects primarily focus on standard trading and have minimal involvement in meme tokens, reflecting a healthy ecosystem composition. Although DEX holds the largest share, it only accounts for 25% of the Ethereum ecosystem, indicating a well-balanced distribution of gas fees.

Stablecoin Transfers

Stablecoin transfers, a key indicator of on-chain activity, rank second only to DEXs in the Ethereum ecosystem. Acting as a quasi-fiat currency in on-chain transactions, stablecoins not only provide a pricing benchmark for other tokens but also become the preferred intermediary for on-chain token transactions due to their ease of use and low slippage. The stablecoin market is mainly dominated by USDT and USDC, which effectively reflects the demand for funds and activity levels within the Ethereum ecosystem.

In the past month, gas fees related to stablecoin transfers on Ethereum totaled $4.01 million, accounting for about 8.5% of the total gas fees burned during this period. This data reflects the strong demand for funds on-chain and underscores the importance of stable coin transfers in assessing the long-term growth potential of public blockchains. Stablecoin transfers are directly tied to whether a blockchain has a strong financial and user base. Ethereum’s robust performance in this area further solidifies its leading position and provides ongoing momentum for its development in the broader cryptocurrency ecosystem.

Dex Trading Bots

The rise of the DEX trading bot sector is closely linked to the popularity of meme coins. These bots are automated trading tools specifically designed for DEX traders, primarily used to help users secure meme coins quickly. Due to the high volatility and short life cycle of meme coins—some only remain active for less than 10 minutes—trading them has become increasingly difficult. Even a few seconds’ delay in placing an order can be the difference between profit and loss. As a result, many traders use DEX trading bots to gain an edge when new meme coins launch. This process not only generates substantial gas fees but also involves significant bribe fees, intended to incentivize blockchain miners to prioritize their transactions, giving them an advantage in meme coin trading.

As shown in Figure 1-3, DEX trading bot projects (mainly Banana Gun and Maestro) rank third in terms of gas fee contribution, following Uniswap and Ethereum/stablecoin transfers.

Figure 1-3: 30-Day Ethereum Base Fees Burn Contribution Ranking

Banana Gun, a cross-chain compatible DEX trading bot, has been particularly active on the Ethereum network, contributing $1.73 million in gas fees over the past 30 days. This places Banana Gun at the top of all DEX trading bot projects, accounting for 3.68% of the total Ethereum ecosystem’s gas fees, underscoring its dominant role in the automated trading tools space.

Maestro, another multi-chain compatible DEX trading bot, primarily operates on Ethereum. In the last 30 days, Maestro generated $1.51 million in gas fees, ranking second among DEX trading bots, and accounting for 3.21% of the total gas fees within the Ethereum ecosystem, highlighting its significant influence in the automated trading market.

The notable position of the DEX trading bot sector in the Ethereum ecosystem (ranking third in gas fee contribution, with about a 6.9% share) reflects its importance. The clear dominance of leading projects (Banana Gun and Maestro capturing over 90% of the market) not only indicates a high level of concentration in this sector but also suggests a balanced approach to meme coin trading on the Ethereum network. This balance allows for the fulfillment of trading demands while avoiding the negative impacts of excessive speculation, which could harm the overall health of the ecosystem. This, in turn, provides strong support for the sustainable development of the Ethereum ecosystem.

Cryptocurrency Wallets

Wallets are a fundamental part of the infrastructure for user activities on public blockchains. The gas fees they generate not only indicate the actual level of user engagement on-chain but also serve as a key measure of the health of the blockchain ecosystem. According to the data (Figure 1-4), MetaMask, the most widely used on-chain wallet, leads the Ethereum ecosystem, contributing $2.91 million in gas fees (with $940,000 burned) over the last 30 days. This represents about 2% of the total gas fees on the Ethereum network, highlighting the significant role that wallets play in the public blockchain ecosystem.

Figure 1-4: MetaMask Gas Fee Contribution (Source: https://defillama.com/fees/metamask)

On-Chain Transfers

On-chain transfers are the second most common activity on the Ethereum network, burning $3.83 million in gas fees over the last month, with an estimated total gas fee contribution of around $25.5 million. This accounts for approximately 12% of the total gas fees in the Ethereum ecosystem, underscoring the critical role of on-chain transfers and the strong demand they reflect within the Ethereum ecosystem.

MEV (Maximal Extractable Value)

MEV is a phenomenon unique to blockchain transaction processing, seen on the Ethereum network as the additional fees users pay to accelerate their transactions. The base fee is burned, while miner tips go directly to the miners. This mechanism became more prominent after the EIP-1559 upgrade. High demand for MEV often signals unhealthy development in the on-chain ecosystem, particularly within meme coin projects, where users increase MEV fees to secure an advantage due to time-sensitive trading. Therefore, the amount of MEV fees can also indirectly indicate the level of activity in meme coin projects. On the Ethereum network, MEV-related burn fees are approximately $3.76 million, representing 8% of total on-chain burn fees, suggesting that while meme coin participation exists, it does not dominate the Ethereum ecosystem.

Ethereum Ecosystem Summary

The Ethereum ecosystem shows diversified growth, but the concentration of activity is in a few key areas. DeFi leads with 60% of gas fees, underscoring its core position, with a balanced distribution across its sub-sectors. ETH transfers (12%), MEV (8%), and NFTs (8%) follow, together making up 88% of total gas consumption. The highest gas fee burn rates are seen in DEXs (26%), on-chain transfers and stablecoins (17%), DEX trading bots (7%), and wallets (3%), collectively accounting for 53% of the total. Layer 2 solutions (6%) and smart contract creation (2%) hold smaller shares, indicating that the ecosystem’s development might currently be in a “low period.” Despite this, the distribution of gas fees across these various sectors is fairly balanced, with no single sector dominating excessively, which suggests the overall health of the ecosystem.

Solana

Fee Structure

On the Solana network, fees and costs are divided into three categories:

• Transaction Fees - fees for validators to process transactions or instructions
• Priority Fees - optional fees that prioritize the order in which transactions are processed
• Rent - the balance required to maintain data storage on-chain

Solana’s network stipulates that a fixed percentage of each transaction fee (initially set at 50%) is burned, with the remaining 50% going to validators. Over the past 30 days, Solana stakers have earned transaction fee rewards totaling $23.1 million.

The popularity of meme coin projects on the Solana network has led to extremely time-sensitive transactions, prompting users to significantly increase priority fees to gain a competitive edge, which has substantially boosted the fee and bribe income for Solana stakers.

Figure 2-1: Interaction Volume Distribution Across Solana’s Sectors Over 30 Days

The interaction volume on the Solana network directly reflects the frequency of on-chain transactions, which closely correlates with Solana’s fee revenue. As shown in Figure 2-1, the activity distribution on the Solana network is as follows:

• DEX (Decentralized Exchange) activities dominate with an 86% share
• Launchers (possibly referring to token issuance or specific functions) account for 4%
• Other activities make up 10%

DEX activities are central to the Solana ecosystem.

On-Chain Economic Activities

DEX

Figure 2-2: Proportion of DEX Activity on Solana

According to Figure 2-2, Raydium and Orca dominate on-chain activity on Solana, accounting for 70% of all transactions, making them the primary venues for activity on the network.

Raydium, the largest decentralized exchange (DEX) in the Solana ecosystem, generated $52.37 million in transaction fees over the past 30 days. Data from Figure 2-3 shows that a significant portion of this revenue comes from meme coin trading pairs, which highlights the dominant role of speculative meme coin trading in Solana’s DeFi market and its substantial contribution to the platform’s revenue.

Figure 2-3: Top Revenue-Generating Trading Pairs on Raydium (Source: https://raydium.io/liquidity-pools/?tab=all&sort_by=fee)

Orca, the second-largest DEX on Solana, generated $12.25 million in transaction fees over the past 30 days, with more than 50% of its revenue coming from meme coin trading pairs. This indicates that speculative meme coin trading continues to be a major force in Solana’s DeFi market and plays a critical role in generating revenue for the platform.

Figure 2-4: Top Revenue-Generating Trading Pairs on Orca (Source: https://www.orca.so/pools)

Recent data from the Solana ecosystem shows that DEXs account for 86% of all on-chain interactions and are estimated to contribute over 80% of transaction fees, with Raydium and Orca capturing 70% of the DEX market share. Notably, meme coin trading makes up more than 90% of Raydium’s activity and over 60% of Orca’s activity. It is estimated that meme coin trading contributes more than 55% of the gas fees across the Solana ecosystem. Specifically, out of the $46.21 million in gas fee revenue generated on Solana over the past 30 days, approximately $30 million came from meme coin trading. While meme coin trading has temporarily boosted on-chain activity and revenue, its speculative nature continuously drains funds from participants. Therefore, despite the impressive data, we believe this growth model driven by meme coins lacks sustainability, and the Solana ecosystem urgently needs to find a more balanced and sustainable growth path.

MEV (Maximal Extractable Value)

Figure 2-5: Daily MEV Fees on Solana (Source: https://dune.com/ilemi/jitosol)

Figure 2-6: Proportion of MEV on Solana (Source: https://beta-analysis.solscan.io/public/dashboard/06d689e1-dcd7-4175-a16a-efc074ad5ce2)

The MEV (Maximal Extractable Value) mechanism on Solana has taken on a new dimension with the rise of meme coin trading, becoming one of the key features of on-chain transactions.

Over the past 30 days, transactions with priority fees (MEV) on the Solana network accounted for 82.45% of all transactions, showing that the vast majority of transactions utilized the MEV mechanism. MEV fees make up a substantial 80% of total transaction fees, highlighting its significance in the Solana ecosystem. Specifically, in the last 30 days, Solana earned $46.21 million in transaction fees, with over $30 million coming from MEV fees. These figures confirm the dominant role of meme coin trading in Solana’s current ecosystem and the extensive use of the MEV mechanism by users to gain an advantage in meme coin trading.

Dex Trading Bots

Figure 2-7: Rankings of DEX Trading Bots (Source: https://dune.com/whale_hunter/dex-trading-bot-wars)

An analysis of the transaction volumes of DEX trading bots reveals that the top three DEX trading bot projects (Photon, Bonkbot, and Trojan) account for over 90% of all transactions on Solana.

• Photon generated $18.96 million in revenue over the last 30 days.
• Bonkbot generated $3.35 million in revenue over the last 30 days.
• Trojan generated $11.36 million in revenue over the last 30 days.

In total, DEX trading bot projects on the Solana network earned approximately $33.67 million in the past 30 days.

Solana Ecosystem Summary

In Solana’s on-chain transactions, about 80% is driven by meme coin trading. The monthly cost breakdown for meme coin traders is:

• MEV Priority Fees: $30 million
• DEX Trading Bot Usage Fees: $30 million
• DEX Transaction Fees: $50 million
• Estimated Monthly Loss for Meme Coin Traders: $110 million

From this data, it’s clear that Solana’s current ecosystem, heavily reliant on meme coin-driven activity, is facing significant sustainability risks. While meme coin trading has temporarily boosted on-chain activity and revenue for Solana, this model places a heavy financial burden on participants. With fixed monthly losses exceeding $1 billion annually, the current model appears unsustainable.

Meme coin projects inherently lack long-term value, relying heavily on continuous inflows of capital and user engagement to thrive. However, as participant losses continue to mount, sustaining market enthusiasm may become increasingly difficult. The Solana ecosystem is at a crossroads, requiring a shift towards a more balanced and sustainable growth strategy that reduces reliance on a single, high-risk area while fostering the development of applications and projects with genuine long-term value, thereby ensuring the ecosystem’s overall health and long-term prosperity.

Ecosystem participants and decision-makers in Solana need to carefully assess the current growth model, devise strategies to lessen the dependence on meme coin trading, and proactively explore and support projects with real value and long-term growth potential. This approach will help build a more resilient and sustainable blockchain ecosystem.

Tron

Tron’s unique design involves transaction fees being used primarily to compensate for network energy and bandwidth consumption rather than as bribes to nodes. These fees include:

• Energy Fees: For the computational resources needed to process and verify transactions.
• Bandwidth Fees: For transmitting transaction data across the blockchain network.

When users lack sufficient bandwidth or energy, they must burn TRX to pay for transaction resources, promoting TRX deflation.

Data from Figure 3-1 shows a continuous deflation trend in TRX circulation since October 29, 2021. This phenomenon is mainly attributed to the widespread adoption of USDT on the Tron network and the significant growth in its transaction volume. The continued expansion of stablecoin transfer activities provides strong support for TRX’s deflationary mechanism, ensuring the sustainability of TRX’s economic model.

Figure 3-1: TRX Circulation Supply Statistics (Source: https://tronscan.org)

As shown in Figure 3-2, data from July 22, 2024, indicates that USDT transfers accounted for 94.51% of on-chain activity, underscoring its dominant role within the Tron ecosystem. Tron’s design advantages, including a fixed low transfer fee of 1 USD (regardless of amount), a fast 3-second block time (compared to Ethereum’s 16 seconds), and the lack of additional priority fees, give it a significant competitive edge in the on-chain payment space. These features not only meet the market’s demand for efficient and low-cost payment solutions but also validate Tron’s initial positioning as a payment blockchain. Tron’s advantages have effectively attracted a large number of users, particularly in stablecoin transfer scenarios, driving sustained growth in on-chain activity and solidifying its key position in digital payment infrastructure.

Figure 3-2: Breakdown of Energy Consumption by Various Projects on the Tron Network as of July 22, 2024 (Source: https://tronscan.org/#/data/charts/contracts/top-contracts)

The daily transaction count on the Tron network has shown strong growth, particularly since 2024. This growth likely reflects the expansion of the Tron ecosystem and increased user adoption. During July and August 2024, transaction volume reached new highs, repeatedly exceeding 8 million transactions, with a peak approaching 9 million. This increase is attributed to the meme token speculation frenzy extending to the Tron blockchain.

Figure 3-3: TRX Transfer Trend Statistics (Source: https://tronscan.org)

In August 2024, Tron founder Justin Sun strategically announced an entry into the meme coin sector, which quickly attracted numerous meme projects to the Tron ecosystem. As of August 20, 2024, data shows significant changes in the energy consumption structure on the Tron network: while USDT transfers still hold the top spot, their share has dropped to 52%, while decentralized exchange (DEX) activity has surged from 3% to 47%. This data shift strongly indicates that the influx of meme projects has brought a significant short-term increase in on-chain activity, reflecting the initial success of Justin Sun’s strategic move, and suggesting that the Tron ecosystem may be undergoing a structural transformation.

Figure 3-4: Breakdown of Energy Consumption by Various Projects on the Tron Network as of August 20, 2024 (Source: https://tronscan.org/#/data/charts/contracts/top-contracts)

Despite the significant decrease in USDT transfer’s share of the overall ecosystem, its actual energy consumption has remained stable, staying within the 80 billion to 90 billion range. This indicates that while the introduction of meme projects has significantly increased on-chain activity, it has not materially impacted Tron’s core business—USDT transfers. This not only highlights the importance of USDT transfers as a rigid demand for users but also reinforces its position as the cornerstone of the Tron ecosystem. This observation further suggests that even if the meme coin craze subsides in the future, the basic operation and stability of the Tron ecosystem are unlikely to be significantly affected. This structural resilience provides strong support for Tron’s long-term development.

Although Tron’s on-chain fee revenue is highly concentrated in USDT transfers, this concentration reflects the rigid demand for stablecoin transfers by users. Combined with the substantial revenue from stablecoin transfers, it underscores users’ reliance on the Tron network and validates the health and sustainability of Tron’s gas fee revenue structure.

Summary

This report thoroughly examines the revenue structures and sustainability of three leading public blockchains: Ethereum, Solana, and Tron, and draws the following key insights:

Ethereum: The Most Balanced and Sustainable Development Model

• Diversified Revenue Streams: Ethereum has a well-balanced development across multiple sectors, with revenue coming from DeFi (60%), ETH transfers (12%), MEV (8%), and NFTs (8%).
• Healthy Ecosystem: Core applications like DEXs and stablecoin transfers maintain a reasonable share, reflecting real and sustained user demand.
• Innovation and Upgrades: Upgrades like EIP-1559 have improved the fee structure, creating long-term value through ETH burning.
• Long-Term Potential: The diverse application scenarios and ongoing technological innovation provide Ethereum with strong long-term growth potential.

Solana: Rapid Growth but Facing Sustainability Challenges

• Revenue Concentration: DEX activities dominate with 86% of on-chain interactions, and over 55% of gas fees come from meme coin trading.
• Widespread Use of MEV: 82.45% of transactions involve MEV, indicating a highly speculative environment.
• High User Costs: Meme coin traders are estimated to lose $110 million monthly, amounting to $1.3 billion annually.
• Sustainability Risks: The current model, heavily dependent on meme coin trading, is unsustainable long-term and requires strategic adjustments.

Tron: Focused on Payments with Unique Advantages

• Stablecoin Dominance: USDT transfers account for 94.51% of on-chain activity, highlighting Tron’s strong position in the payment sector.
• Clear Technical Advantages: Low fees, fast transaction confirmations, and a fixed fee structure make Tron ideal for large-scale payment applications.
• Structural Resilience: Even during the meme coin craze, Tron’s core USDT transfer business remains stable.
• Long-Term Sustainability: The high demand for stablecoin transfers provides Tron with a reliable and sustainable long-term revenue stream.

Overall Evaluation

Ethereum shows the strongest long-term sustainability, thanks to its diversified ecosystem and continuous innovation.

Solana has grown rapidly, but its heavy reliance on meme coin trading poses significant risks, necessitating a strategic shift for long-term viability.

Tron has carved out a unique position in the payments sector, especially with stablecoin transfers, and has established a sustainable revenue model.

Disclaimer:

1.This article is reposted from X original titled “In-Depth Analysis: The Revenue Sustainability of Ethereum, Solana, and Tron,” with copyrights belonging to the original author [@FrontierLab_ZH]. If there are any objections to this repost, please contact the Gate Learn Team, and the team will address the issue promptly according to the relevant procedures.

1. The views expressed in this article are those of the author alone and do not constitute investment advice.

2. Translations of this article in other languages are provided by the Gate Learn team, and should not be copied, disseminated, or plagiarized without mentioning Gate.io.