PANews reported on January 1st, citing CryptoSlate, that Ethereum's network performed strongly in 2025, processing record transaction volumes and dominating thePANews reported on January 1st, citing CryptoSlate, that Ethereum's network performed strongly in 2025, processing record transaction volumes and dominating the

Analysis: Ethereum will "sacrifice" over $100 million in subsidies for ecosystem expansion in 2025.

2026/01/01 16:01

PANews reported on January 1st, citing CryptoSlate, that Ethereum's network performed strongly in 2025, processing record transaction volumes and dominating the DeFi market (mainnet TVL accounting for 64%). However, the price of ETH fell 10% throughout the year to below $3,000, decoupling from network activity. This was due to Ethereum proactively reducing transaction fees through technical upgrades to promote the growth of the L2 network and the expansion of the entire ecosystem, resulting in a significant drop in mainnet revenue. Total L2 revenue decreased by 53% to $129 million in 2025, but fees paid to the mainnet plummeted to only $10 million, allowing L2 operators to retain approximately $119 million in profit. This means that the Ethereum mainnet "sacrificed" over $100 million in potential revenue (a decrease of approximately $103 million compared to 2024) to subsidize ecosystem growth.

Market Opportunity
DeFi Logo
DeFi Price(DEFI)
$0,000547
$0,000547$0,000547
+%1,29
USD
DeFi (DEFI) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

The Channel Factories We’ve Been Waiting For

The Channel Factories We’ve Been Waiting For

The post The Channel Factories We’ve Been Waiting For appeared on BitcoinEthereumNews.com. Visions of future technology are often prescient about the broad strokes while flubbing the details. The tablets in “2001: A Space Odyssey” do indeed look like iPads, but you never see the astronauts paying for subscriptions or wasting hours on Candy Crush.  Channel factories are one vision that arose early in the history of the Lightning Network to address some challenges that Lightning has faced from the beginning. Despite having grown to become Bitcoin’s most successful layer-2 scaling solution, with instant and low-fee payments, Lightning’s scale is limited by its reliance on payment channels. Although Lightning shifts most transactions off-chain, each payment channel still requires an on-chain transaction to open and (usually) another to close. As adoption grows, pressure on the blockchain grows with it. The need for a more scalable approach to managing channels is clear. Channel factories were supposed to meet this need, but where are they? In 2025, subnetworks are emerging that revive the impetus of channel factories with some new details that vastly increase their potential. They are natively interoperable with Lightning and achieve greater scale by allowing a group of participants to open a shared multisig UTXO and create multiple bilateral channels, which reduces the number of on-chain transactions and improves capital efficiency. Achieving greater scale by reducing complexity, Ark and Spark perform the same function as traditional channel factories with new designs and additional capabilities based on shared UTXOs.  Channel Factories 101 Channel factories have been around since the inception of Lightning. A factory is a multiparty contract where multiple users (not just two, as in a Dryja-Poon channel) cooperatively lock funds in a single multisig UTXO. They can open, close and update channels off-chain without updating the blockchain for each operation. Only when participants leave or the factory dissolves is an on-chain transaction…
Share
BitcoinEthereumNews2025/09/18 00:09
Dogecoin Price Prediction For 2025, As Analysts Call Pepeto The Next 100x

Dogecoin Price Prediction For 2025, As Analysts Call Pepeto The Next 100x

Traders hunting the best crypto to buy now and the best crypto investment in 2025 keep watching doge, yet today’s […] The post Dogecoin Price Prediction For 2025, As Analysts Call Pepeto The Next 100x appeared first on Coindoo.
Share
Coindoo2025/09/18 00:39
Styling Men’s Best Denim Jackets For Everyday

Styling Men’s Best Denim Jackets For Everyday

A denim jacket belongs to more than one category. It is the one thing in men’s wardrobe that quietly transitions to every occasion and company. The secret is not
Share
Techbullion2026/01/05 01:16