Ethereum has reached a new milestone in application revenue, largely driven by stablecoin transactions such as USDT and USDC, despite revenue cooling to $35 million per day as the broader market softened. This surge raises the question: can Ethereum’s economic engine propel another market upswing?
Record Application Revenue on Ethereum
On October 14, data from Growthepie revealed that the Ethereum mainnet generated $48 million per day in application revenue, surpassing the 2022 peak of $41 million. The primary driver of this growth was stablecoin trading, highlighting the crucial role of USDT and USDC in fueling network fees. Half of the daily revenue stemmed directly from stablecoin swaps, and in October alone, the stablecoin trading volume reached approximately $46 billion, reinforcing the importance of these assets in Ethereum’s fee economy.
Stablecoins at the Core of Revenue Growth
USDT and USDC dominate transaction demand and liquidity, creating the bulk of fees for Ethereum. In a dense DeFi ecosystem, stablecoins are used for payments, collateral, and swap fees, turning them into a highly effective revenue engine for the network. Their influence extends beyond simple valuation—they directly drive transaction volume and fee accumulation on Ethereum’s mainnet.
Ethereum’s Flywheel Effect: Scale and Lower Fees
Ethereum benefits from a flywheel effect: higher throughput enables lower fees, which attract more users and activity, further increasing network value. Analysts, including Joseph Young, note that as transaction experiences improve and fees decrease, stablecoin swaps increase, sustaining application revenue and reinforcing Ethereum’s mainnet dominance even amidst Layer 2 expansion.
Revenue Cooldown and Market Adjustment
Following the October 14 peak, Ethereum’s application revenue declined to $35 million per day, reflecting market-wide cooling and cautious investor sentiment. Nevertheless, underlying drivers—stablecoin liquidity and DeFi activity—remain key pillars supporting revenue during market stability.
Comparative Network Revenue: Ethereum Retains Significant Share
Over the past 30 days, Hyperliquid led overall network revenue with 30%, while Ethereum accounted for 21.5%, BNB 16%, and Solana and Tron 11% each (Blockworks). Despite Hyperliquid’s high-performance trading, Ethereum continues to hold a core position in revenue generation and application ecosystem breadth. The share held by BNB, Solana, and Tron reflects diversified multi-chain trading demand.
Ethereum Revenue Breakdown (30-Day Market Share)
| Platform | Revenue Share (30 Days) |
|---|---|
| Hyperliquid (HYPE) | 30% |
| Ethereum (ETH) | 21.5% |
| BNB | 16% |
| Solana (SOL) | 11% |
| Tron (TRX) | 11% |
At the protocol level, Ethereum revenue is largely driven by Tether, Circle, and Sky (formerly Maker), emphasizing stablecoins and lending-borrowing activity as core fee structures in the Ethereum ecosystem.
ETH Price Outlook: Stablecoin Optimism vs BTC Rotation
Short-term ETH price projections remain mixed. Tom Lee of Fundstrat remains optimistic, citing stablecoin growth and tokenization, with his treasury firm BitMine holding 3.4 million ETH to capitalize on these trends. Conversely, Coinbase forecasts a near-term rotation toward Bitcoin, potentially pressuring ETH/BTC and other altcoin pairs. According to Coinbase Institutional’s October 2025 Monthly Outlook:
“We expect a gradual increase in Bitcoin dominance over the next 2–3 months, which may exert downward pressure on ETH/BTC and alt/BTC pairs before a subsequent market rotation.”
The likely scenario suggests short-term focus on BTC, followed by capital returning to ETH and altcoins. Investors should monitor dominance metrics, on-chain fees, and stablecoin volumes to gauge rotation timing.
Frequently Asked Questions
-
Why did Ethereum app revenue peak on October 14?
Due to surging demand for stablecoin transactions, particularly USDT and USDC, which drove fee accumulation on the network. -
Are Layer 2 solutions taking market share from Ethereum?
During the record period, L2 solutions accounted for only 14% of revenue, indicating the mainnet remains central. -
What was the stablecoin trading volume in October?
Approximately $46 billion, driving a significant portion of revenue. -
How does Ethereum compare to other chains in 30-day revenue?
Hyperliquid leads with 30%, Ethereum 21.5%, BNB 16%, Solana and Tron 11% each. -
What is Coinbase’s short-term ETH outlook?
BTC dominance is expected to rise over 2–3 months, applying pressure on ETH/BTC before market rotation occurs.
Conclusion
Ethereum’s record-breaking app revenue highlights the powerful role of stablecoins and DeFi in sustaining network fees. While short-term price action may favor Bitcoin, Ethereum’s economic engine—driven by stablecoin liquidity and transaction activity—remains robust, positioning it for potential growth as market conditions stabilize.
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