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Ethereum’s DeFi Driven Success: $1B Annual Profit Forecast, Bullish Momentum Aims for $4,000 Post-Halving

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  • Ethereum is expected to turn a $1 billion profit in 2024, thanks to significant increases in transaction volume and fee income.
  • Despite the recent price decrease, Ethereum’s long-term prospects remain bright due to developments in the network and attention from institutions.

In the first quarter of 2024, Analyst Michael Nadeau reported in “The DeFi Report ” that Ethereum showed very impressive numbers. The network looks set to pull in $1 billion in annually reported profit, after registering a net income of $365 million-an extraordinary 200% increase from the quarter before this to only $123 million.

The network saw an 80% increase from the previous quarter and a 155% increase from the same period last year in fee revenue, which reached $1.17 billion.

The primary cause of this income growth is a surge in decentralized finance (DeFi) activities, which in turn drove average daily transactions to reach 2021 peak levels and soar over those of the previous year in 2024.

Ethereum’s First Year of Profit and Cost Reduction 

Ethereum turned a profit for the first time in 2023, making $623 million, even though revenues were far less than the peak of $9.9 billion in 2021.

The switch to a proof-of-stake consensus in September 2022, which decreased the token incentives given to miners (now validators) by almost 80%, was a major contributor to its profitability.

Source: The DeFi Report

Ethereum’s fees have increased steadily at a pace of 58% since 2017. Cryptocurrency analyst Michael Nadeau is still upbeat about cryptocurrencies’ future, expecting that they will beat other asset classes in the upcoming years.

He lists a number of important variables, such as the introduction of U.S. spot Bitcoin exchange-traded funds, the impending Bitcoin halving, and a continuous innovation cycle, as well as favorable liquidity circumstances and anticipated rate reductions by the Federal Reserve, as catalysts for a positive crypto market.

Conditions of the Market Right Now

Ethereum’s price is currently high at $3,303.81, up 1.92% over the previous 24 hours, according to CoinGecko, despite a recent 12.12% decline over the past week.

Also, renowned analyst Alex Krüger thinks that because of Ethereum’s usefulness and the advantages of staking, the cryptocurrency is about to hit unprecedented heights.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628