Ethereum network is still the leader in the adoption of decentralized applications in terms of volumes and deposits, despite competition from blockchain networks like Solana and BNB Chain. These networks benefit from lower transaction fees, which attract more unique active addresses, but Ethereum’s growth in DApp volume remains unhindered by well-funded organizations. This recent surge in activity on the Ethereum network stands out from broader cryptocurrency market trends and even contradicts other usage metrics.
What’s Happening in the Ethereum Ecosystem?
It’s worth noting that Ethereum is the only network among the top 20 to report volume growth, with an impressive 83% increase compared to the previous week. In contrast, similar protocols like BNB Chain, Polygon, Solana, and TON saw an average volume drop of over 30%. Ethereum’s 475,980 addresses are fewer compared to BNB Chain’s 1.18 million and Solana’s 1.62 million addresses.
The increase in Ethereum’s volume did not coincide with an increase in user numbers. Despite the significant volume increase, Ethereum saw 8% fewer users compared to the previous week. This is contradictory, given that it fared better than its competitors. However, despite having fewer users due to relatively high fees, Ethereum’s growth in deposits might be compensating for the decline in activity.
Here Are the Notable Details
Ethereum’s volume growth was primarily driven by a 422% increase in Balancer over seven days, reaching a total of $40.6 billion. However, Balancer’s significant volume increase did not align with improvements in other metrics; the DApp saw a 5% drop in unique addresses and a 14% drop in transactions within the same week. Excluding Balancer’s contribution, Ethereum’s volume growth over seven days actually fell by 5% because this single DApp accounted for 59.5% of the entire network’s volume.
The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
