Ethereum's income from layer-2 (L2) blob fees has plummeted over 95% since mid-March, leading to concerns regarding the network's revenue model post-Dencun upgrade. For the week ending March 30, Ethereum earned just 3.18 Ether from blob fees, equivalent to around $6,000, reflecting a 73% decline from the previous week and a more than 95% drop from mid-March when earnings were above 84 ETH. The Dencun upgrade, implemented in March 2024, migrated L2 transaction data to offchain blobs, decreasing user costs but also fee revenue. Overshadowing the potential for growth, experts highlight that L2 transaction volumes would need to increase substantially—over 22,000-fold—to restore previous peak revenues. Moreover, Ethereum's future effectiveness as a data availability engine for L2s will be crucial, particularly as it prepares for the upcoming Pectra Upgrade aimed at optimizing blob space allocation. Overall, these developments underline the network's ongoing struggle to create a sustainable income model from blob fees.

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