Ethereum’s decentralized app (DApp) volumes have surged 38% in just one month, making it a powerhouse in the blockchain space. But here’s the catch—Ethereum’s price hasn’t followed suit. Despite Ethereum leading the charge in on-chain volumes, including an impressive $149.9 billion in the last 30 days, its price has struggled to stay above $3,200 recently, according to CoinDesk. So, what’s holding it back?
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Ethereum Outpaces Competitors in Activity and Fees
Ethereum still stands head and shoulders above the competition when it comes to activity and fees. No other blockchain comes close to its $149.9 billion in on-chain volumes—BNB Chain, its closest rival, only hit $26.6 billion. Despite a hefty $7.50 average transaction fee, Ethereum’s use of Layer-2 solutions like Arbitrum (ARB-USD) and Optimism (OP-USD) is driving growth and retaining its dominance, according to DefiLlama.
Solana’s Growth Could Pose a Threat
Solana’s (SOL-USD) 83% growth in on-chain volume is causing some ripple effects, mainly thanks to its low fees and impressive decentralized exchange volumes. But despite its growth, Ethereum still reigns supreme in fees and staking rewards, outpacing Solana by a significant margin. However, Solana’s rise shows that Ethereum can’t rest on its laurels, and competition is heating up.
What’s Next for Ethereum?
The key to Ethereum’s future lies in scaling. Ethereum 3.0 promises improvements like sharding and zkEVM, but as Joe Lubin points out, full implementation may still be years away. For now, Ethereum’s path forward hinges on maintaining its lead in fees, staking rewards, and DApp growth, while also addressing its scalability challenges. Time will tell if Ethereum can turn these growing pains into a bull run.
At the time of writing, Ethereum is sitting at $3,111.74.
