Linea batches users' transactions and submits them to Ethereum, paying a share of the transaction fees to Ethereum validators (expense).

Linea is an L2 smart contract platform for decentralized applications on Ethereum. Linea was founded by the ConsenSys team and launched in 2023.

ConsenSys team owns and governs the protocol. ConsenSys's investors include ParaFi Capital, Microsoft, Coinbase Ventures, etc.

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Blockchains (L2)

Linea

# Linea Average revenue per user (ARPU) Methodology

## 1. Overview

Average Revenue Per User (ARPU) measures the average amount of revenue generated per daily active user on the Linea network. This metric answers the business question: "How much revenue does each active user generate on average per day?" The calculation divides total daily revenue (derived from transaction gas fees) by the number of daily active users (transaction senders), providing insights into user monetization and network economic efficiency.

## 2. Data sources

- **Linea blockchain transaction records**: Complete transaction data from the Linea L2 network including transaction hashes, sender addresses, recipient addresses, gas usage, gas prices, block timestamps, and transaction metadata
- **End-of-day ETH price feeds**: Daily closing prices for ETH in USD to convert gas fees from native token amounts to dollar values
- **Token metadata**: ETH token information including the contract address `0xe5d7c2a44ffddf6b295a15c148167daaaf5cf34f` and symbol `ETH` used for gas payments on Linea

## 3. Step-by-step calculation

### Component A: Transaction data preparation
- **Purpose**: Extract and standardize transaction data from Linea blockchain
- **Logic**: Raw transaction data is retrieved from Linea blockchain records and standardized with proper data type casting. Each transaction includes the sender address (`from_address`), recipient address (`to_address`), gas consumption (`receipt_gas_used`), gas price (`receipt_effective_gas_price`), block timestamp, and transaction hash. The native ETH token is identified with address `0xe5d7c2a44ffddf6b295a15c148167daaaf5cf34f` and symbol `ETH`. All transactions are tagged with chain identifier `linea` for proper attribution.
- **Key fields**: `block_timestamp` for temporal grouping, `from_address` for user identification, `gas_used` and `gas_price` for fee calculations, `transaction_hash` for unique transaction identification

### Component B: Gas fee calculation
- **Purpose**: Calculate transaction fees in ETH from gas usage and pricing data
- **Logic**: For each transaction, the gas fee is calculated by multiplying `gas_used` by `gas_price` and dividing by 1e18 to convert from wei (smallest ETH unit) to standard ETH units. Gas fees are aggregated daily by summing all transaction fees within each calendar day. The aggregation groups by day-truncated timestamp, token address, and chain to ensure proper daily totals.
- **Key fields**: `l2_gas_fees` representing daily total gas fees in ETH, `timestamp` truncated to day boundaries for daily aggregation

### Component C: Revenue calculation with USD conversion
- **Purpose**: Convert gas fees to USD revenue using market prices
- **Logic**: Daily gas fees in ETH are converted to USD using end-of-day price feeds. The conversion uses historical ETH prices matched to the corresponding date of each gas fee record. Since gas fees are already in proper ETH units (not requiring decimal correction), only USD conversion is applied. The result represents daily revenue generated from user transaction fees on the Linea network.
- **Key fields**: `fees` representing daily revenue in USD, with proper business line categorization as `blockchain` and market sector as `blockchains_l2`

### Component D: Daily active user counting
- **Purpose**: Count distinct users active each day on Linea
- **Logic**: Daily active users are identified from transaction sender addresses (`from_address`) in Linea transaction records. Each unique address that sends at least one transaction in a day is counted as an active user. User addresses are deduplicated using HyperLogLog sketches for efficient storage and aggregation. Users are classified with type `Transaction sender` and tagged with market sector `blockchains_l2` and business segment `blockchain`. The counting is performed across different dimensional breakdowns including project level, chain level, user type, and product level aggregations.
- **Key fields**: `user_dau` representing the count of distinct daily active users, `user_address` for user identification, `user_type` for classification

### Component E: User aggregation across dimensions
- **Purpose**: Aggregate user counts across different analytical dimensions
- **Logic**: Daily active user counts are aggregated using HyperLogLog merge operations to create different dimensional views. Aggregations include project-level totals (`project_dbt_tag`), chain-level breakdowns, user type breakdowns, and product-level breakdowns. The HyperLogLog approach allows for efficient combining of user sets while avoiding double-counting users across dimensions. Each aggregation level maintains timestamp, dimension type, and relevant identifier fields.
- **Key fields**: `user_dau` extracted from merged HyperLogLog sketches, `dimensions` indicating the aggregation level, dimension-specific identifier fields

### Final aggregation
- **Combining components**: Revenue and user data are combined through the ARPU calculation macro which matches records by timestamp and relevant dimensional keys (chain, product, etc.). Both components must have the same temporal grain (daily) for proper alignment.
- **Currency conversion**: Revenue is already converted to USD in the gas fee processing step using end-of-day ETH prices matched to transaction dates
- **Time aggregation**: Daily boundaries are established by truncating timestamps to day precision, ensuring all transactions and user activities within a 24-hour period are grouped together
- **Final calculation**: ARPU is calculated by dividing daily revenue (in USD) by daily active user count for each day and dimensional combination. The formula is: ARPU = Daily Revenue ÷ Daily Active Users. Missing days are filled with zero values to maintain complete time series continuity. Data quality filters ensure only valid chain data is included in the final results.

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

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Average revenue per user (ARPU)

Average revenue per user (ARPU)

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