Ethereum is well-positioned to hit $1 billion in Q1 2024, with net income of $365 million and 155% year-over-year quarterly revenue growth. According to a report by DeFi Reports analyst Michael Nadeau, the network's Q1 2024 revenue increased by almost 200% from the $123 million profit recorded in Q4 2023.
Ethereum fees charged on user transactions at the time of payment have increased by 155% compared to Q1 2023 since that number jumped to $1.17 billion. This is higher than last quarter's revenue and an 80% increase over the $900 million figure.
Ethereum was introduced to the market in 2015, but it became profitable in 2023, bringing in $623 million in profits. Nadeau said the network has become more decentralized and flipping fees have come down as a result of the switch to proof-of-stake validators in September 2022, with incentive payments of 20% of the original value per block. I believe this is due to the significant reduction.
Nadeau noted that Bitcoin and Ether tend to be “highly correlated,” with Bitcoin outperforming as the most well-known cryptocurrency early in the bull market. In contrast, Ether and altcoins tend to outperform in the later stages of the cycle.
The analyst highlighted the introduction of the US Spot Bitcoin ETF, the upcoming Bitcoin halving, and a period of innovation as key drivers of the positive outlook in the coming years. Additionally, Ethereum's solid financial results and boost from industry developments suggest that Ethereum will continue its profitable trend in the future.
Also read: Dormant Ethereum wallet earns $7 million in profit.
