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Ethereum L2s Generate $768M in Fees as Blob Capacity Upgrades Lag Behind Transaction Growth

April 19, 2025

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Ethereum L2s Generate $768M in Fees as Blob Capacity Upgrades Lag Behind Transaction Growth

Applications on Base, a Coinbase-backed Ethereum layer-2 (L2), have generated $768 million in cumulative fees since inception and contributed approximately $4.5 million in blob and settlement fees to Ethereum's layer-1 (L1) validators. Base has onboarded 155 million addresses, bridged 1.9 million ETH (representing 1.6% of Ethereum's circulating supply), and currently secures nearly $10 billion in total value. Over the past six months, Base has averaged 93 transactions per second.

Ethereum supports L2s through 'blobs,' a low-cost data storage mechanism introduced with EIP-4844. Industry analysis indicates that Ethereum's planned increases in blob capacity, including the upcoming Pectra upgrade to six blobs per block, may not be sufficient to meet rapid L2 transaction growth. Simulations suggest that a tenfold increase in L2 transactions could push average transaction fees to $0.64, unless blob capacity is expanded to at least 33 blobs per block to keep L2 transaction costs below $0.02.

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