Ethereum’s network revenues are poised to rebound as surging activity on layer-2 (L2) scaling networks drives demand for data storage, according to cryptocurrency researchers and onchain data.

In November, Ethereum L2s have been posting upward of three times more transaction data each day to the mainnet than they did in March, according to data from Dune Analytics.

Ethereum’s revenues dropped by as much as 95% after the network’s March Dencun upgrade migrated L2 transaction data to temporary offchain stores called “blobs” in a bid to cut costs for users, according to data from asset manager VanEck.

“ETH Fees Were Weak Due to Lack of Blob Revenues as L2s Have Not Filled Available Capacity,” Matthew Sigel, VanEck’s head of digital asset research, said in a Nov. 1 post on the X platform.

“There is Some Evidence this is Changing, thanks to Base, Scroll and World Chain,” Sigel said, referring to three popular L2s.

Source: Dune Analytics

Related: Trump win could fast-track first staked Ether ETF — Nansen analyst


In September, Sigel said he expects Ethereum to generate up to $66 billion in annual free cash flow by 2030, driving spot Ether’s price as high as $22,000 per Ether ( ETH ) token.

His estimate reflects anticipated value accrual to ETH holders from transaction fees as Ethereum processes a growing portion of the world’s transactions. 

“Ethereum processed roughly $4 trillion in settlement value over the last year and another $5 trillion in stablecoin transfers annually. So this is far bigger than PayPal and is beginning to approach networks like Visa,” Sigel said.

Since launching in 2015, Ethereum has generated $3 billion in fees (denominated in ETH), Sigel said.

Other ETH value accrual mechanisms include “burning” — or permanently removing from circulation — a portion of transaction fees and emitting new ETH to reward stakers, who post ETH as collateral to secure the network.

Scenarios for ETH by 2030. Source: VanEck

On Nov. 6, ETH prices spiked 10% after crypto-friendly Republican Donald Trump prevailed in the United States presidential elections.

Meanwhile, US spot Ether exchange-traded funds (ETFs) saw net inflows of $52.3 million, the highest in six weeks.

Trump’s victory in the presidential election could pave the way for more crypto investing products to hit the US markets, including the first staked ETH ETFs , according to Edward Wilson, an analyst at Nansen.

Other protocols are competing against Ethereum in data availability. They include Celestia, EigenDA and Avail, among others.

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