Friday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

19 April 2024

Ethereum’s first profitable year was in 2023, and its strong performance in Q1 2024 positions the blockchain network to potentially achieve $1 billion in annual income by the end of the year.

Ethereum reported a $365 million profit in the first quarter of 2024, a 155% increase compared to the same period in 2023. Its transaction fees hit $1.17 billion, driven by a surge in DeFi activity.

Ethereum’s average daily transactions in 2024 have already surpassed last year’s figures, closing in on the peak levels recorded in 2021. Although Ethereum launched in 2015, it achieved profitability last year due to the transition to proof-of-stake consensus in 2022, which reduced token incentives for validators by about 80%.

Analyst Michael Nadeau predicts that crypto markets will outperform other assets in the coming years, citing improved liquidity conditions and upcoming events such as Bitcoin ETFs, the Bitcoin halving, and the innovation cycle.

Bitcoin and Ethereum are closely correlated, with Bitcoin excelling early in bull markets, while Ethereum and altcoins tend to outperform in the later stages of a cycle.

Nadeau notes that altcoins have rallied significantly in the last two cycles and expects this trend to continue for those with a clear product-market fit.