Ethereum remains the largest smart contracts platform by market capitalization, supporting a diverse range of decentralized applications (dapps) across various sectors.

The introduction of Uniswap in late 2018 and the automated market maker (AMM) model played a crucial role in shaping the decentralized finance (DeFi) ecosystem on Ethereum.

Despite a decline in interest in the Metaverse, gaming, and NFTs, the DeFi sector is witnessing a steady recovery in total value locked (TVL).

Following the 2018 crypto winter, gas fees surged again, driven by the resurgence of ERC-20 tokens and the increasing adoption of DeFi protocols.

Gas fees from decentralized exchanges (DEXs) have seen a significant drop, plummeting from $2.4 billion in 2021 to $512 million in 2024, while ERC-20 transfers have contributed more to fee generation.

Between 2018 and 2020, Ethereum's gas fees were primarily derived from ERC-20 token transfers, but this shifted towards DEXs during the 2021 bull market.

In 2023, Ethereum generated $247 million in gas fees from layer-2 solutions like Arbitrum and Optimism, indicating a trend towards more efficient transaction methods.

As of September 2024, ERC-20 transfers have generated $223 million for validators, influenced by the activity surrounding meme coins and stablecoins.

Gas fees on the Ethereum network have experienced notable fluctuations, dropping from $143 million in 2018 to $46 million in 2019 following the ICO mania.