The Ethereum network has reported a substantial net profit of $369.11 million for the first quarter of 2024, marking an impressive surge of 209.5% compared to the corresponding period last year.

In-depth analysis by Coin98 reveals that Ethereum's commission income skyrocketed to $1.17 billion, representing a remarkable 155% increase from the first quarter of 2023. Total revenue surged past the $1 billion milestone, while expenses surged to nearly $666 million.

The Ethereum ecosystem witnessed a surge in daily active users, surpassing 404,000, alongside a daily transaction volume of 1.18 million. Over the course of the first quarter of 2024, the network facilitated over 107 million transactions, accompanied by the addition of 263.8 million unique addresses. Notably, the daily commission reached 508.77 Ethereum (ETH).

Coin98 Analytics further highlights that Ethereum experienced a surge in NFT creation, with over 4.8 million NFTs minted during the initial three months of 2024. Additionally, the USDT stablecoin maintained its dominance as the largest Ethereum-based stablecoin by market capitalization.

Meanwhile, DefiLlama data indicates that the total value locked (TVL) on the Ethereum network surged to $55.89 billion, albeit experiencing a slight decline to $50 billion at the time of reporting.

The surge in Ethereum's profitability correlates with the escalating fees on the network. Transaction costs on Ethereum have witnessed a significant uptick, particularly fueled by the proliferation of ERC-20 tokens, notably meme coins.

The escalating transaction costs underscore the urgent necessity for scalable solutions to accommodate the surging demand while ensuring user accessibility. The recent Dencun update in March addressed several commission-related issues, including a reduction in fees for Ethereum layer 2 solutions, thereby alleviating some of the strain on users.