Ethereum’s decentralized application (dApp) ecosystem witnessed a remarkable financial milestone in October, as daily revenues on the Ethereum mainnet peaked at $48 million — a new all-time high. This surge, driven predominantly by stablecoin activity, surpassed the previous record of $41 million set in 2022. Despite this impressive performance, questions remain about whether Ethereum’s economic momentum will translate into a sustained rally for its native token, ETH.
An in-depth analysis reveals that nearly 50% of Ethereum’s revenue in October stemmed from stablecoin swaps. Transactions involving major assets like Tether’s USDT and Circle’s USDC accounted for approximately $46 billion in volume during the month. This upswing in stablecoin usage has positioned Ethereum as a core financial infrastructure layer, strengthening its role as a foundational settlement network.
However, the situation is nuanced. While the Layer 1 (L1) mainnet captured the lion’s share of revenue, Layer 2 (L2) networks only accounted for 14% of total revenue. This is a stark rebuttal to the narrative that L2 solutions are siphoning off significant value from Ethereum. Instead, it suggests that the mainnet continues to dominate in terms of economic throughput, even as scalability solutions gain traction.
Analyst Joseph Young weighed in on the implications of Ethereum’s revenue dynamics, describing the current trajectory as a “positive flywheel.” According to him, Ethereum’s high throughput leads to lower transaction fees, which encourages greater usage and ultimately drives higher value capture. In his words, “Ethereum isn’t just scaling. It’s accelerating as an economic machine.”
Despite this optimism, Ethereum’s revenue has since cooled to around $35 million per day amid a broader downturn in the crypto market. This decline reflects the volatile nature of blockchain activity and illustrates how macroeconomic conditions and investor sentiment can significantly impact network performance.
In comparison with other blockchains, Ethereum remains a top-tier performer, although it’s not necessarily leading in all respects. Data from Blockworks shows that Hyperliquid (HYPE) accounted for 30% of total network revenue over the past 30 days, surpassing Ethereum’s 21.5% share. Binance Smart Chain (BNB) followed with 16%, while Solana (SOL) and Tron (TRX) each captured 11%.
On the protocol level, Ethereum’s primary revenue contributors continue to be dominated by stablecoin issuers and DeFi protocols. Tether, Circle, and Sky (formerly known as Maker) are among the top sources of transactional activity, reinforcing Ethereum’s position as a critical hub for digital finance.
Tom Lee, Chief Investment Officer at Fundstrat, remains bullish on ETH’s long-term prospects. His treasury firm, BitMine, currently holds 3.4 million ETH, betting on the expansion of stablecoins and tokenization as key growth vectors. Lee views Ethereum’s increasing utility and financial integration as strong indicators of price appreciation potential.
However, not all analysts share this view. Coinbase’s research team has expressed skepticism about Ethereum’s short- to mid-term market performance. In their latest monthly outlook, they suggest that Bitcoin (BTC) may reassert dominance in the coming months, potentially overshadowing ETH and other altcoins. “We anticipate a gradual increase in Bitcoin dominance over the next 2–3 months,” they stated, “which may exert downward pressure on ETH/BTC and other altcoin pairs.”
This divergence in opinion underscores the complex interplay between network fundamentals and market psychology. Even as Ethereum’s on-chain metrics improve, external factors such as investor rotation, macroeconomic uncertainty, and Bitcoin’s gravitational pull can influence asset valuations.
An important factor to consider is Ethereum’s upcoming upgrades. With the continued rollout of Ethereum 2.0 features, including Danksharding and Proto-Danksharding, the network is expected to achieve even greater scalability and cost efficiency. These technical improvements could further boost application usage and economic activity, setting the stage for the next phase of Ethereum’s growth.
Moreover, the rise of Real World Asset (RWA) tokenization on Ethereum could open new revenue streams. Traditional institutions are increasingly exploring blockchain-based solutions for issuing and trading tokenized assets such as bonds, real estate, and equities. Ethereum, with its mature infrastructure and developer ecosystem, is well-positioned to capture a significant portion of this market.
The growing integration of Ethereum into financial products and services is also notable. From decentralized finance (DeFi) platforms to centralized exchanges and custody solutions, Ethereum is becoming embedded across the entire digital asset value chain. This strengthens its long-term value proposition as more capital flows through the network.
Additionally, regulatory clarity in key jurisdictions could serve as a catalyst for increased institutional adoption. Should Ethereum be formally recognized as a commodity or utility asset — rather than a security — it may pave the way for broader inclusion in investment portfolios and financial products like ETFs.
Despite short-term headwinds such as market volatility and Bitcoin dominance, Ethereum’s structural strengths remain intact. Its diverse revenue base, growing use cases, and continuous innovation position it well for future growth. Investors and developers alike will be watching closely to see if the network’s financial engine can sustain momentum and eventually translate into upward price action for ETH.
In conclusion, Ethereum’s record-breaking app revenue signals a maturing ecosystem with real economic activity. Whether this will catalyze the next major ETH rally depends on multiple variables — from macro trends and technological rollouts to investor sentiment and competitive dynamics. Yet, one thing is clear: Ethereum’s role as a digital economic machine is stronger than ever.