Ethereum, the world’s most valuable smart contract platform, has generated more than $10 billion in revenue in a record seven years. At this rate, Ethereum reached this milestone faster than most major technology companies except Alphabet.
Ethereum Reached $10 Billion Milestone Faster Than Microsoft and Zoom
Records showed that Ethereum took about seven years to generate $10 billion in revenue, based on ETH spot rates, and was eclipsed only by Alphabet, which took about six years, according to data compiled by Token Terminal, an analytics platform.
When comparing this performance to other technology companies, for example Microsoft, it appears that Ethereum has found rapid adoption and its solutions have been adopted faster. It took Microsoft almost 19 years to reach this milestone, while Adobe took approximately 20 years.
The rise of Ethereum is partly due to its capabilities. Unlike Bitcoin, which launched the first functional, trustless transactional network, Ethereum allows for the deployment of more complex protocols in various sectors, including finance, gaming or art.
Ethereum’s revenue comes primarily from its transaction fee, measured in gas. Depending on the complexity of the transaction, the network charges different fees or gas.
Simple transfers that do not require the execution of smart contracts are relatively cheaper. On the other hand, those that work trustlessly through smart contracts will be more expensive. Fees depend on the complexity of the transactions.
All revenue generated is distributed to validators. These entities are tasked with securing the network and validating transactions, for which role they are compensated with block rewards and transaction fees associated with each block.
However, the revenue generated depends on the network activity: the larger the transaction processed, the higher the fee applied to each block. Typically, increased network activity tends to increase gas fees due to increased demand for block space.