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- 1 Ethereum (ETH) network stands ahead of many tech giant companies in terms of accumulating revenue in minimum time.
- 2 The network hoarded $10 Billion in revenue in just seven years, less than Microsoft and Zoom-like companies.
Blockchain technology is taking a strong position across the tech sector worldwide. The strengthening is also visible in terms of revenue. One of the leading cryptocurrency blockchain networks with smart contract capabilities, the Ethereum (ETH) network, reportedly accumulated $10 Billion in revenue faster than many known tech giants.
The financial data aggregator platform, Token Terminal, compiled data on Ethereum which boils down that the blockchain network managed to generate $10 Billion in revenue in a record time of seven years. The amount of time the smart contract blockchain network took to hit the revenue numbers is more than top tech giants, except for Google’s parent company Alphabet Inc.
Ethereum’s rapid adoption and acceptance of its solutions stand out when compared to other technology firms like Microsoft, which took nearly 19 years, and Adobe, which took around 20 years, to reach the same feat. This highlights Ethereum’s relatively swift trajectory in the technology industry.
The chart further demonstrates that emerging platforms such as Zoom achieved this milestone in a comparatively short time frame. Zoom, a communication platform known for online audio and video meetings, reached $10 Billion in revenue in approximately 11 years. This suggests a faster growth trajectory for Zoom as compared to Ethereum, Microsoft, or Adobe.
Zoom indeed experienced a rapid rise to prominence during the COVID-19 lockdown period, becoming a widely used platform for online meetings and collaboration. Its continued popularity has resulted in a valuation of over $20 Billion as of September 2023, highlighting its sustained success in the digital communication space.
Factors to Push Ethereum Revenue
Ethereum’s surge in popularity can be attributed in part to its versatile capabilities. While Bitcoin pioneered the concept of a trustless and functional transactional network, Ethereum distinguishes itself by enabling the deployment of more complex protocols across various industries. This flexibility has made Ethereum a popular choice for applications in finance, gaming, art, and beyond.
As of September 25, Ethereum’s native currency, ETH, was trading at approximately $1,588, and the Ethereum network boasted of a market capitalization exceeding $191 Billion.
Ethereum generates its revenue primarily through transaction fees, which are measured in gas. The cost of these fees varies depending on the complexity of the transaction.
Simple transfers with no involvement of smart contracts tend to have lower fees, while transactions that rely on smart contracts for trustless execution tend to be more expensive. The fees are directly tied to the intricacy of the transactions being processed on the network.
The revenue generated by Ethereum through transaction fees is distributed to validators. Validators play a crucial role in securing the network and confirming transactions. They receive compensation in the form of block rewards and transaction fees associated with each block they validate. This incentivizes validators to maintain the network’s integrity and ensure its smooth operation.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
