Ethereum Revenue Drops 44% in August Amid Institutional Staking Surge

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Why did Ethereum's revenue drop despite high ETH prices?

How does institutional staking affect Ethereum's future sustainability?

What does the revenue decline mean for ETH holders and investors?

Ethereum Revenue Drops 44% in August Amid Institutional Staking Surge — Image source: Unblock Media

Ethereum’s revenue and network fees dropped sharply in August 2025.
Institutional interest in Ethereum staking continues to rise, with a $40M capital raise by advocates.

Ethereum's revenue and network fees saw a dramatic decline in August 2025, according to a report by Cointelegraph on September 7, 2025. Despite hitting an all-time high price during the same month, the network’s revenue fell by approximately 44%, decreasing from $25.6 million in July to $14.1 million in August. This decline has raised questions about the platform’s long-term economic sustainability.

The drop in network fees for Ethereum was also significant, declining by 20% month-over-month. In August, network fees totaled approximately $39.7 million, down from $49.6 million in July. Cointelegraph attributed the year-long reduction in fees to the Dencun upgrade implemented in March 2024. The upgrade had lowered transaction costs for Ethereum’s layer-2 scaling networks, which may have contributed to the reduced fee revenue.

Meanwhile, institutional interest in Ethereum is gaining momentum in 2025, despite concerns over its current economic metrics. Etherealize, an advocacy and public relations firm, announced the completion of a $40 million capital raise in September 2025 to promote Ethereum to publicly traded companies. This development underscores the appeal of Ethereum as a staking-based yield-generating platform for institutional investors.

According to Matt Hougan, Chief Investment Officer at Bitwise, institutional investors are drawn to Ethereum’s staking system, which enables companies to stake their ETH to help secure the network while earning rewards. This emerging trend highlights the growing interest in Ethereum as a yield-bearing asset, potentially offsetting concerns about declining revenue and fee structures.

As of September 7, 2025, 21:08 UTC, Ethereum (ETH) is trading at $4,295.02, with a 0.43% increase in 24-hour trading volume, according to CoinMarketCap.