How Much Are People Paying to Use Crypto
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How Much Are People Paying to Use Crypto

2m
8 months ago

A look at how much fees people are paying to use different blockchains and decentralized applications like DEXes.

How Much Are People Paying to Use Crypto
When looking at the total transaction fee revenue for the top blockchain platforms and decentralized applications (DApp), we found that some of today’s most popular apps — including Uniswap and SushiSwap — generate more transaction fees than several entire blockchain networks. This points to how much Ethereum users are paying for gas as they transact on the network, as compared to low-cost chains dubbed "Ethereum killers".
Ethereum still tops the list by total transaction fee revenue, generating an average of $13.7 million in transaction fees per day over the last week. This is more than the next 10 largest platforms/applications combined. The average number of transactions over 7 days on the Ethereum network is 1.15M, according to etherscan.io.
Despite seeing a gradual downtick in trading volume over the last 3 months, Uniswap comes in second place, generating an average of $2.5 million in trading fees each day. This is almost twice that of the entire BNB Chain, which is well-known for its low fees. However, the average number of transactions for the past 7 days on BNB Smart Chain (BSC) network is 4.8M, over 3M more than the Ethereum network.
Five of the top ten highest fee-yielding platforms are decentralized exchanges (DEXes), including SushiSwap (multi-chain), SpookySwap (Fantom), Trader Joe (Avalanche) and Osmosis (Cosmos IBC).
SpookySwap alone generates more revenue in fees than the entire Fantom blockchain — with a daily average of $770k paid by traders on the DEX, compared to Fantom’s $361k average in network fees. Fantom is a DAG-based blockchain with a strong focus on decentralized finance (DeFi) in its ecosystem of applications.
Network and protocol fees are used to value blockchains and protocols using metrics such as price-to-earnings (P/E) ratio and price-to-sales (P/S) ratio. According to tokenterminal, Ethereum is valued at a P/S ratio of 42.36X and P/E ratio of 50.25X. Similar to traditional equities, price is the market capitalization of the asset. For cryptoassets, the fully diluted valuation (FDV) is used.

Total annualized revenue (based on the last 30D average) is used to calculate P/S ratio, while annualized protocol revenue is used to calculate P/E ratio. Put simply, protocol revenues are the share of transaction fees (in ETH) burned — as this value are given back to ETH holders. Meanwhile, total revenues include the protocol revenue and the share of transaction fees that goes to miners.

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