Demystifying blockchain profitability: Which L1 and L2 earn the most?

Highest L1 blockchains: Bitcoin, Ethereum, Binance Smart Chain, Solana. The highest L2 blockchain: Optimistic Rollup, ZK Rollup, sidechain, whose revenue sources include transaction fees, block rewards, staking rewards and slippage fees.

Blockchain Profitability Revealed: Which L1 and L2 earn the most?

Introduction

With the continuous development of the blockchain industry, profitability has become the focus of attention. This article will take a closer look at which L1 (Layer 1) and L2 (Layer 2) blockchain platforms generate the highest revenue.

L1 Blockchain

L1 Blockchain is the basic layer in the blockchain ecosystem, responsible for processing transactions and maintaining network security. Revenue sources include:

• Transaction Fees: Fees paid by users when they conduct transactions on the network.
• Block Reward: The reward a miner or validator receives when creating or validating a block.
• Staking Rewards: Holders stake their tokens to secure the network and earn rewards.

Highest Revenue L1 Blockchain:

• Bitcoin (BTC): The largest L1 blockchain, generating revenue primarily through transaction fees.
• Ethereum (ETH): The second largest L1 blockchain, with transaction fees, block rewards and staking rewards as revenue sources.
• Binance Smart Chain (BNB): High-performance L1 blockchain offering low transaction fees and high transaction speeds.
• Solana (SOL): High-throughput L1 blockchain, known for high transaction speeds and low transaction fees.

L2 Blockchain

L2 Blockchain is built on L1 Blockchain, providing scalability and speed optimization. Its revenue streams are similar to L1, but also include:

• Slippage Fees: Fees paid by users when trading on less liquid exchanges.
• Block Rewards: Rewards obtained when creating or verifying blocks on L2 blocks.

Highest Revenue L2 Blockchains:

• Optimistic Rollup (like Optimism and Arbitrum): Achieve scalability by packaging transactions into L2 blocks and publishing them to L1.
• ZK Rollup (like zkSync and Starknet): Use zero-knowledge proof technology to quickly verify transactions while remaining secure.
• Sidechains (such as Polygon and Avalanche): Independent blockchains that run parallel to L1, offering customized transaction rules and fee structures.

Conclusion

The profitability of L1 and L2 blockchains depends on factors such as transaction volume, network fees, and token value. Currently, L1 blockchains like Bitcoin, Ethereum, Binance Smart Chain, and Solana, and L2 blockchains like Optimistic Rollup, ZK Rollup, and sidechains are the top earners. As blockchain technology continues to develop, the profitability of these platforms is expected to continue to grow.

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