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Ethereum's Q1 2025 DApp Dominance: $1 Billion in Fees and DeFi Leadership

Ethereum led Q1 2025's decentralized application (DApp) space with $1.021 billion in fee incomes, far surpassing others. The amount factors in active user engagement from top DApps like Uniswap, Aave, and OpenSea that span a wide range from DeFi and NFTs to games and social programs. Ethereum gains from its first-mover advantage from smart contract introduction, higher security, and massive ecosystems established from almost 5,000 live DApps.

The other chains lagged far behind Ethereum, with Coinbase's Layer-2 Base chain collecting $193 million, BNB Chain $170 million, Arbitrum $73.8 million, and Avalanche C-Chain $27.68 million in DApp fees during the same time frame. Despite competition and concerns about transaction costs, Ethereum's DeFi market remains strong, with $46 billion in Total Value Locked (TVL), over half of the total DeFi market. This robust economic activity highlights Ethereum's continued dominance of decentralized finance and Web3 usage.

The Ethereum Dencun upgrade, launched in March 2024, has significantly enhanced the network's scalability and efficiency. By incorporating proto-danksharding through EIP-4844, the upgrade enables L2 rollups to submit transaction data at significantly reduced prices, reducing L2 gas fees by over 90% without losing security or speed. The improvement encourages more engagement with Ethereum's ecosystem, boosting total throughput and user experience

 

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