Report: Bitcoin and L2 Networks Lead Fee Generation Surge in Blockchain Landscape

The PWN DAO Foundation, linked to the peer-to-peer lending protocol PWN, has released a broad study analyzing user-incurred onchain fees wrong large blockchain networks and decentralized applications (dapps) for the past year. The 2023 investigation examines Ethereum, BNB Chain, Bitcoin, and furniture 2 (L2) solutions, on with widely-used dapps specified arsenic Aave and Uniswap. The study sheds airy connected the superior trends successful interest procreation and discusses the changing patterns of blockchain utilization and revenue.

2023’s L1 and L2 Fee Generation Stats Revealed

The report published by PWN, illustrates a divers scenery of onchain interest generation, underscoring a 33% wide simplification successful fees crossed the selected projects compared to the erstwhile year. This inclination was peculiarly pronounced successful non-fungible token (NFT) marketplaces, which experienced an 87% driblet successful interest generation. In contrast, L2 solutions exhibited important maturation of astir 411%, indicating a displacement successful idiosyncratic preferences and level utilization.

The survey shows furniture 1 (L1) blockchains, contempt a flimsy decrease, continued to predominate the interest market, accounting for 59% of each fees, up from 48% successful 2022. Ethereum, maintaining its presumption arsenic a marketplace leader, showed a notable 44% diminution successful fees, partially owed to the migration of activities to L2 networks.

“The rising fees generated by [L2s] awesome wide adoption and a important interaction connected idiosyncratic experience,” the study’s researchers detail.

The study besides highlights important changes successful idiosyncratic blockchain platforms. Bitcoin, Tron, and Polkadot saw the astir important maturation successful interest generation, with Bitcoin’s fees surging by 461%. The summation successful Bitcoin web fees was attributed to the popularity of Ordinal inscriptions, a caller embedding exertion wrong the Bitcoin network, marking a notable displacement successful its usage dynamics. As of Jan. 29, 2024, the number of Ordinal inscriptions connected the Bitcoin blockchain has impressively surpassed the 58 cardinal mark.

Decentralized exchanges (dexs) witnessed a 51% alteration successful interest generation, with Uniswap emerging arsenic a ascendant player, securing 64% of dex-generated fees. The study suggests that contempt the diminution successful fees, the trading measurement connected dex platforms remained comparatively stable, pointing to an evolving narration betwixt trading enactment and interest structures successful the decentralized concern (defi) sector.

The study concludes by discussing liquid staking derivatives (LSDs) which showed a important 93% summation successful interest generation, highlighting the increasing involvement successful staking solutions wrong the crypto-native economy. The study notes that Lido Finance, the LSD leader, collected a important information of these fees, reflecting the platform’s beardown presumption successful the market.

As the scenery evolves, with idiosyncratic preferences gravitating towards much businesslike and innovative platforms, it’s wide that the blockchain ecosystem is continuously undergoing a transformative phase. This improvement paves the mode for emerging technologies and strategies, perchance redefining the aboriginal of blockchain inferior and economical models successful the crypto space.

What bash you deliberation astir PWN’s study surrounding L1s and L2s, dapps and interest generation? Let america cognize what you deliberation astir this taxable successful the comments conception below.