Messari Researcher Warns Ethereum May Be Weakening as Network Revenue Falls Despite Strong Q3 Rally

• Ethereum revenue fell to $39.2M in August — the lowest since January 2021.

• ETH price is up strongly in Q3, but on‑chain revenue and fee income have not followed.

• Analysts debate metrics: active addresses and throughput trend up, but revenue decline points to weaker user monetization.

Ethereum revenue collapse: August $39.2M shows on-chain activity lagging price gains. Read COINOTAG analysis for clear insight and next-step guidance.

What is causing Ethereum’s revenue collapse?

Ethereum revenue collapse refers to the sustained drop in network fee and protocol revenue, driven by lower fee extraction per transaction and shifting user activity. August revenue hit $39.2M, a 75% decline from August 2023 and 30% below August 2024, signaling reduced on‑chain monetization despite higher ETH prices.

How does the ETH price rally coexist with falling network revenue?

Price gains in ETH do not automatically translate to higher network revenue. The recent Q3 rally (ETH up ~73% this quarter) reflects market sentiment and capital flows, while revenue depends on fees, transaction composition, and user behavior.

Key factors reducing revenue include lower median gas fees, scaling to Layer‑2s that shift fees off mainnet, and a rise in transactions that are low-fee or batched. AJC, a researcher at Messari, flagged the revenue collapse as a sign of declining network monetization, while other Messari analysts noted small positive trends in active addresses and throughput.

Why do some analysts call metrics misleading?

AJC has argued that common on‑chain indicators like active addresses and throughput can be “meaningless statistics” if they do not correlate with fee generation or marginal user demand. Other analysts counter that improved throughput and rising active addresses indicate organic network use that may precede revenue normalization.

Stablecoin supply growth alone does not drive Ethereum revenue unless velocity (frequency of transfers and value exchanged) rises. Continued Layer‑2 scaling can reduce mainnet fee revenue even as it increases overall ecosystem capacity.

Frequently Asked Questions

What does the $39.2M August revenue mean for ETH holders?

The $39.2M figure indicates weaker fee capture on mainnet even as ETH price rises. Holders should distinguish between market price appreciation and on‑chain revenue dynamics when assessing network health.

How should investors read debates from data firms and researchers?

Listen to multiple expert views. AJC at Messari highlights monetization risks; other Messari analysts point to improving active addresses. Combine quantitative revenue data with qualitative assessments of demand and Layer‑2 adoption.

Key Takeaways

• Revenue drop is real: August $39.2M is the lowest recorded since Jan 2021 and represents a major year‑over‑year decline.
• Price ≠ fee income: ETH’s Q3 price rally has not restored protocol fee revenue; different drivers influence price and on‑chain monetization.
• Metrics matter contextually: Active addresses, throughput, stablecoin supply, and Layer‑2 flows must be interpreted together to assess network demand.

Conclusion

This COINOTAG analysis shows an Ethereum revenue collapse that contrasts with a strong Q3 price rally. The divergence underlines the difference between market value and on‑chain monetization. Monitoring fee trends, Layer‑2 migration and transaction composition will be essential to judge whether revenue can recover. For continuing coverage and updates, follow COINOTAG reporting.