Ethereum network generated $370 million in profits in the first quarter, while ETH recovers $3,000

It may seem counterintuitive that a decentralized network can generate profits, but that's exactly what ethereum has done so far this year.

According to a Token Terminal report on April 18, the ethereum blockchain generated a profit of $369 million in the first quarter of 2024.

If this level of profits is maintained, the blockchain could generate around $1.5 billion a year.

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BREAKING: The ethereum blockchain generated a profit of $369.08 million in the first quarter of 24.

Hope for?!

How can you like a *blockchain*? twitter.com/ethereum?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>@ethereum To be profitable?

Let's review the ethereum business model step by step:

1. Rates. All users of the ethereum blockchain pay transaction fees in eth… pic.twitter.com/gHAoNbRf48

– Token terminal (@tokenterminal) twitter.com/tokenterminal/status/1780911733613167072?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>April 18, 2024

ethereum blockchain is profitable

Token Terminal explained that ethereum's revenue model is based on network fees, which are what gas users pay for making transactions. Gas costs spiked in early March but have now fallen back to yearly lows.

Additionally, a portion of the eth is burned and removed from circulation with each transaction. This adds to the economic benefit of existing eth holders, as issuance becomes deflationary in times of high demand.

There is also “spending,” which is the issuance of new eth to the network's validators and stakers as an additional financial reward.

“The difference between the daily dollar value of burned eth (income) and newly issued eth (expenses) represents the daily earnings of existing eth holders,” he explained.

crypto and ethereum investor Ryan Sean Adams said ethereum was not like other blockchains. Over the past 18 months, ethereum generated nearly $1 billion in profits, he added.

“This places ethereum among the top 20 entities globally in terms of repurchase yield at 0.23%. ethereum is only 9 years old. “eth should surpass $10,000 based on this alone.”

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No, ethereum is not like the other chains.

ethereum is profitable.

Over the past 18 months, ethereum generated nearly $1 billion in profits.

These profits were distributed in an ongoing token buyback program called “the burn”.

This places ethereum among the top 20 entities… pic.twitter.com/ZaGn3C6XVS

— RYAN SΞAN ADAMS – rsa.eth (@RyanSAdams) twitter.com/RyanSAdams/status/1781081511736786985?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>April 18, 2024

On April 19, venture capitalist Tomasz Tunguz told his 98,000 x followers that ethereum “was the most profitable software company in the first quarter of 2024.”

ethereum generated $370 million in profits on $825 million in revenue, representing a net income margin of approximately 45%, he added.

“If ethereum were listed on the New York Stock Exchange or NASDAQ, it would top the charts for net income margin (%), followed by Microsoft, Adobe, and Veeva thereafter.”

eth Price Slides

However, eth markets didn't get any love last night, with the asset falling below $3,000 for the first time in two months.

However, the trend began to change in the following hours, and eth, along with the rest of the market, bounced to around $3,100 as of now.

Still, the asset has retreated nearly 25% from its 2024 high and remains 38% below its 2021 all-time high.

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