Ethereum and Bitcoin Network Revenues in 2025 Remain Far Below 2021 Peaks, On-Chain Data Shows

Network revenues generated by Ethereum and Bitcoin in 2025 remain significantly below their record highs from 2021, according to the latest blockchain data circulating in the crypto market.

Ethereum’s annualized network revenue has fallen from approximately $9.9 billion at its 2021 peak to about $665.6 million in 2025. Bitcoin’s revenue has also declined sharply, dropping from roughly $1.02 billion during the prior cycle high to approximately $173.4 million this year.

The figures were initially highlighted by the verified X account Cointelegraph and later independently confirmed by the HOKANEWS editorial team prior to publication, in accordance with standard newsroom practices.

The stark contrast underscores how dramatically blockchain activity has shifted since the height of the last bull market.

Source: XPost

A Look at Network Revenue

Ethereum and Bitcoin generate network revenue primarily through transaction fees paid by users.

For Ethereum, fees are paid for executing smart contracts, transferring tokens, minting NFTs, and interacting with decentralized applications. For Bitcoin, revenue comes from transaction fees attached to BTC transfers, in addition to block rewards paid to miners.

Network revenue is often viewed as a proxy for blockchain activity and demand. Higher fees generally indicate elevated usage, congestion, and speculative participation.

The 2021 bull market was characterized by explosive demand for decentralized finance, NFT minting, and speculative trading, driving transaction fees to unprecedented levels.

Ethereum’s Sharp Revenue Decline

In 2021, Ethereum’s network revenue surged to nearly $9.9 billion as decentralized finance protocols and NFT marketplaces reached peak popularity.

High gas fees became common as users competed for block space.

In contrast, 2025 revenue figures of approximately $665.6 million reflect a dramatically different environment.

Several factors may explain the decline:

Reduced speculative activity
Lower NFT trading volumes
Moderation in decentralized finance usage
Migration of activity to Layer 2 scaling networks

Layer 2 solutions process transactions off-chain before settling on Ethereum’s mainnet, significantly lowering fees for users. While this improves scalability, it also reduces direct fee revenue on the base layer.

Bitcoin’s Revenue Contraction

Bitcoin’s revenue has similarly fallen from its 2021 high of $1.02 billion to approximately $173.4 million in 2025.

Bitcoin’s fee market is generally less complex than Ethereum’s, as it does not support native smart contract ecosystems at scale.

Transaction volume, mempool congestion, and miner fee competition largely determine revenue fluctuations.

The 2021 surge was fueled by heightened trading, institutional inflows, and elevated on-chain movement.

In 2025, more moderate network activity and improved transaction batching techniques may have contributed to lower fee generation.

Comparing Market Cycles

The divergence between 2021 highs and 2025 levels reflects broader shifts in market dynamics.

The 2021 cycle was driven by:

Retail investor enthusiasm
Institutional adoption narratives
NFT speculation
Rapid DeFi expansion

In contrast, 2025 appears characterized by a more measured market environment.

While digital assets remain widely adopted, speculative mania has subsided compared to previous peaks.

Lower network revenue does not necessarily indicate network weakness. It may reflect greater efficiency and reduced congestion.

The Impact of Scaling Solutions

Ethereum’s transition to proof-of-stake and the rapid growth of Layer 2 networks have fundamentally changed its economic model.

Layer 2 solutions such as rollups reduce transaction costs and improve throughput, but they also divert fee revenue away from the base layer.

Some analysts argue that lower base-layer revenue may reflect successful scalability rather than declining relevance.

Bitcoin, meanwhile, continues to explore second-layer solutions such as the Lightning Network to facilitate smaller transactions with lower fees.

These developments may reduce base-chain congestion and fee revenue while improving usability.

Investor and Institutional Perspectives

Institutional investors often evaluate blockchain networks based on:

User growth
Developer activity
Security metrics
Economic sustainability

Lower revenue compared to peak mania does not automatically signal long-term decline.

However, sustained revenue contraction may influence narratives surrounding valuation and network demand.

Some analysts compare blockchain network revenue to corporate earnings, using it as a framework for valuation modeling.

In that context, revenue normalization following speculative excess may be viewed as part of a maturation process.

Market Sentiment and Price Dynamics

Despite lower network revenue, both Ethereum and Bitcoin remain major digital assets by market capitalization.

Price performance does not always move in direct correlation with fee revenue.

Macroeconomic factors, ETF flows, and broader risk sentiment often play significant roles in price formation.

Still, network revenue remains an important on-chain indicator for analysts assessing ecosystem health.

Confirmation and Reporting Standards

The revenue figures were first highlighted by the verified X account Cointelegraph and independently confirmed by the HOKANEWS editorial team prior to publication.

On-chain data sources may update periodically as blockchain activity evolves.

As with all blockchain metrics, revenue calculations depend on methodology and timeframe definitions.

Looking Ahead

Future network revenue trends will depend on several factors:

Adoption of decentralized applications
Institutional trading activity
Scaling solution growth
Regulatory developments

If blockchain usage expands in areas such as tokenized real-world assets or decentralized infrastructure, revenue could recover.

Alternatively, continued efficiency improvements may keep fee levels moderate.

For now, the contrast between 2021 peaks and 2025 levels highlights how dramatically market conditions have shifted.

While revenues are miles below prior highs, both Ethereum and Bitcoin continue to operate as foundational components of the digital asset ecosystem.

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Writer @Ethan
Ethan Collins is a passionate crypto journalist and blockchain enthusiast, always on the hunt for the latest trends shaking up the digital finance world. With a knack for turning complex blockchain developments into engaging, easy-to-understand stories, he keeps readers ahead of the curve in the fast-paced crypto universe. Whether it’s Bitcoin, Ethereum, or emerging altcoins, Ethan dives deep into the markets to uncover insights, rumors, and opportunities that matter to crypto fans everywhere.

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