In just seven years, Ethereum, the world’s leading smart contract platform, has amassed a staggering $10 billion in revenue, outpacing most major tech companies in this achievement, second only to Alphabet.
Ethereum Surpassed the $10 Billion Mark Sooner Than Microsoft and Zoom
Data from Token Terminal, an analytics platform, reveals that Ethereum reached the $10 billion milestone in seven years, a feat surpassed only by Alphabet, which accomplished it in approximately six years. Comparing this growth to tech giants like Microsoft and Adobe, Ethereum’s rapid adoption and acceptance of its solutions become evident. Microsoft took nearly 19 years, while Adobe needed about 20 years to reach this financial milestone.
In contrast, newer platforms like Zoom achieved this milestone relatively quickly, taking almost 11 years. Zoom gained prominence during the COVID-19 lockdown in late 2019 through 2020 when online meetings became the norm for businesses. As of late September 2023, Zoom’s valuation has exceeded $20 billion.
Ethereum’s remarkable growth can be attributed, in part, to its versatility. Unlike Bitcoin, which introduced the first trustless and functional transaction network, Ethereum empowers the deployment of intricate protocols across various industries, including finance, gaming, and art.
As of September 25, 2023, Ethereum’s native currency, ETH, was trading at around $1,570 with a market capitalization exceeding $191 billion.
Income Generated by Gas Fees and Network Usage
Ethereum’s revenue primarily derives from transaction fees, quantified in gas. The complexity of a transaction determines the gas fee, with simple transfers being more cost-effective than those executed through smart contracts. These fees are distributed to validators, responsible for network security and transaction validation, compensating them through block rewards and transaction fees associated with each block.
Ethereum’s revenue is closely tied to network activity, with higher transaction volumes and increased fees per block resulting from heightened demand for block space during periods of increased network activity.