• Ethereum revenues grew significantly in Q1 despite price volatility
• ETH’s price started to see green again as network growth fell

Ethereum [ETH] took a massive hit in terms of price over the last few days. However, it’s worth looking at the bigger picture too, with the same revealing that Ethereum’s network has been doing really well, despite the recent price fluctuations.

Ethereum had a very positive Q1. In fact, Ethereum achieved a profit of $370 million from $825 million in revenue, equating to a net income margin of approximately 45%.

Ethereum revenue on the rise

If Ethereum was listed on the New York Stock Exchange or the NASDAQ, it would lead the net income margin (%) rankings, with Microsoft, Adobe, and Veeva following closely. In terms of total profits across all publicly traded software companies, Ethereum would rank sixth.

At the time of writing, Ethereum’s market capitalization stood at approximately $350 billion, placing it on par with tech giants such as Salesforce.

However, there are significant caveats to consider here.

Ethereum’s historical performance may not be as stellar, and its structure deviates from traditional corporations. Unlike a typical company, Ethereum’s token functions as both a utility and a form of “equity.” Additionally, Ethereum’s valuation is considerably higher than traditional software companies, when compared by revenue multiples.

How is ETH doing?

The growth of Ethereum in Q1 and its potential for growth in the next quarter can help aid the bullish narrative around the network. Moreover, the revenue generated through L2s after the Dencun upgrade can also help the Ethereum network in terms of profitability.

Despite all these favorable things happening for Ethereum, the price of ETH fell materially over the past week. It depreciated by over 11% and slipped past the $3,000-mark, before recovering again. However, the interest in ETH grew after this drastic decline.

Is your portfolio green? Check the Ethereum Profit Calculator

Here, it’s worth noting that AMBCrypto’s evaluation of Santiment’s data revealed that even though the price of ETH recovered, its network growth flatlined.

This indicated that the number of new addresses interacting with ETH fell. A lack of interest from new addresses in ETH could affect the price movement of the altcoin significantly going forward.