Ethereum's blob fees plummet to 2025 lows

Ethereum's (CRYPTO:ETH) income from layer-2 (L2) blob fees has reached its lowest weekly level in 2025, sparking concerns about the network's post-Dencun revenue model.

In the week ending March 30, Ethereum earned just 3.18 Ether (ETH) from blob fees, equivalent to approximately $6,000 as of April 1.

This represents a 73% drop from the previous week and a staggering 95% decline from mid-March, when blob fee income exceeded 84 ETH.

The decline follows Ethereum's Dencun upgrade in March 2024, which shifted L2 transaction data to temporary offchain stores called "blobs."

While this upgrade reduced costs for users, it significantly decreased Ethereum's overall fee revenue, initially by as much as 95%.

"ETH Fees Were Weak Due to Lack of Blob Revenues as L2s Have Not Filled Available Capacity," Matthew Sigel of VanEck noted.

Ethereum's blob fee income peaked at nearly $1 million in November but has since declined sharply.

Analysts suggest that L2 transaction volumes would need to increase dramatically—more than 22,000-fold—to offset Ethereum's peak transaction fee revenues.

The network's future is seen as heavily reliant on its role as a data availability engine for L2s.

The upcoming Pectra Upgrade aims to change how Ethereum allocates blob space, potentially impacting its revenue model.

Despite these challenges, Ethereum's focus remains on scaling to capture market share, with fee revenue considerations secondary.

At the time of reporting, the Ethereum (ETH) price was $1,879.62.