Validators process transactions and receive fees from users (supply-side fees).

Ethereum is a smart contract platform for decentralized applications (a blockchain). Ethereum was founded by Vitalik Buterin, Anthony Di Iorio, Mihai Alisie, etc. and launched in 2015.

ETH holders own and govern the protocol. They currently take a cut of the total transaction fees (base fee) paid by users (revenue). Ethereum’s investors include KR1, Block Ventures, 8 Decimal Capital, etc.

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Ethereum

# Ethereum Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) for Ethereum measures the daily revenue generated per active user on the Ethereum network. This metric answers the business question: "How much revenue does Ethereum generate per user each day?" The calculation divides total daily revenue by the number of daily active users, providing insight into the economic efficiency and monetization of the Ethereum blockchain.

## 2. Data sources

The ARPU calculation relies on the following raw data sources:

- **Ethereum blockchain data**: Raw Ethereum transaction records containing transaction details, gas usage, fees, and sender addresses
- **Ethereum block data**: Block-level information including base fee rates and gas usage statistics
- **End-of-day price feeds**: Token price data used to convert ETH-denominated fees to USD values, accessed via WETH token pricing as a proxy for ETH
- **Token metadata**: Information about the WETH token contract used as a proxy for ETH pricing in USD conversions

## 3. Step-by-step calculation

### Component A: Revenue calculation

**Purpose**: Calculate total daily revenue generated by Ethereum through transaction fees

**Logic**: Revenue comes from two fee components introduced by Ethereum protocol upgrades. First, base fees (from EIP-1559) are calculated by joining transaction data with block data to multiply each transaction's `gas_used` by the block's `base_fee_per_gas` rate. These base fees represent the portion of transaction fees that are burned and removed from circulation. Second, blob fees (from EIP-4844) are calculated by multiplying `blob_gas_used` by `blob_gas_price` for transactions that include blob data. Both fee types are extracted from raw transaction records, aggregated by day, and converted from wei to ETH by dividing by 10^18. The final step converts ETH amounts to USD using end-of-day price feeds, with WETH token serving as a proxy for ETH pricing.

**Key fields**: `gas_used`, `base_fee_per_gas`, `blob_gas_used`, `blob_gas_price`, `block_timestamp`

### Component B: Daily active users calculation

**Purpose**: Count unique users interacting with Ethereum each day

**Logic**: Daily active users are identified by extracting the `from_address` field from all Ethereum transactions, which represents the address that initiated and paid for each transaction. These addresses are grouped by day using timestamp truncation to daily boundaries. To efficiently handle large volumes of data and enable dimensional analysis, the calculation uses HyperLogLog (HLL) probabilistic counting algorithms. The system creates multiple dimensional breakdowns including project-level, chain-level, user-type, and product-level aggregations. All users are classified with `user_type` as "Transaction sender" since they represent addresses that actively submitted transactions to the network.

**Key fields**: `from_address`, `block_timestamp`, `transaction_hash`, `user_type`

### Final aggregation

**Combining components**: The daily revenue (in USD) and daily active user count are joined by date to create matched pairs for each day

**Currency conversion**: ETH-denominated fees are converted to USD using end-of-day price feeds, with WETH token address serving as the pricing proxy for ETH since ETH itself doesn't have a standard token contract

**Time aggregation**: Both revenue and user metrics use daily UTC boundaries created by truncating timestamps to day level, ensuring consistent time alignment

**Final calculation**: ARPU is computed by dividing total daily revenue in USD by the count of daily active users for each corresponding day, using the calculate_arpu macro. Missing days in the time series are filled with zero values to maintain consistent reporting periods.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

EthereumETH

Average revenue per user (ARPU)

Average revenue per user (ARPU)

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