L2 transaction volume has multiplied many times over, yet ETH mainnet fees have fallen. This money did not just vanish. It flowed to L2 sequencers — the operators of L2s like Base and Arbitrum. Every time you pay a gas fee on an L2, most of it goes straight into that L2's wallet. Only a very small part reaches the Ethereum mainnet as a data availability fee (blob fee).
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Step 1: See the disconnect between "transaction volume" and "fees"
What to do Check the data and understand that the strange combination of rising L2 volume and falling mainnet revenue is real.
How to do it Look at the latest on-chain numbers:
Transaction volume: L2 networks now handle several times the daily transactions of the mainnet. In early 2026, Base alone broke 2 million transactions per day, while the Ethereum mainnet hovered around 2.2 million — and a big chunk of that has already been diverted to L2s.
Revenue share: In the second quarter of 2026, Ethereum's mainnet (L1) captured only 4.9% of the economic value created by its application layer. The application layer generated $1.79 billion in fees, but L1 received just $88.4 million.
L2 profits: Take Base as an example. It earned about $94 million in profit, yet paid only around $4.9 million to the Ethereum mainnet over the same period.
You'll know you're done when You can explain that although L2 transaction volume is huge, each transaction contributes very little to the mainnet — most of the money is captured by the L2 operators.
Step 2: Find the direct reason mainnet revenue fell
What to do Identify the key protocol change that stopped the mainnet from earning.
How to do it The core reason is the Dencun upgrade in March 2024, especially EIP-4844 (blob transactions):
This upgrade introduced a cheaper way to store data (blobs) specifically for L2s to post transaction data back to the mainnet.
It slashed L2 operating costs. The data they send to the mainnet became much cheaper, so the mainnet's "toll fees" naturally shrank.
As a result, mainnet fee revenue and ETH burn plunged. ETH even slipped back into slight inflation.
Common mistake Many people assume that if L2 volume grows, mainnet revenue must grow too. In reality, EIP-4844 changed the fee structure, so the logic of mainnet income changed — volume and revenue are no longer positively linked.
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Step 3: Trace where the value went
What to do Pinpoint whose pocket the money ends up in.
How to do it Most of the value is captured by the L2 networks themselves:
L2 operators: L2s like Base, Arbitrum, and Optimism use sequencers to process transactions and collect gas fees. After deducting the tiny cost paid to the mainnet, their profits are huge.
Data proof: Numbers show that for every $1 Optimism pays to the Ethereum mainnet as a settlement fee, it earns about $321 from L2 fees.
You'll know you're done when You understand that the vast majority of L2 gas fees paid by users become revenue for L2 projects (such as Coinbase through Base) or related foundations, rather than returning value to ETH holders.
How to verify this yourself: Head to data platforms like DeFiLlama or Dune Analytics, search for keywords like "Ethereum L2 revenue" or "Base profit," and compare L1 and L2 income yourself. When you see L2 revenue is dozens or even over a hundred times higher than L1 revenue, the picture of value transfer becomes very clear.
