As Ethereum (ETH) approaches the $5,000 mark, the transaction volume on the Ethereum network continues to rise. However, increasing competition is eroding network revenue and user attention.
According to Nansen data, Ethereum's daily average transaction volume is nearing historical highs, with 1.7 million transactions recorded on Tuesday.
In comparison, data from The Tie shows that Ethereum Layer-2 networks Arbitrum and Base recorded 3.4 million and 8.6 million transactions, respectively, while the competitive Layer-1 blockchain Aptos processed 3.8 million transactions on Monday.
The number of active addresses on Ethereum has remained relatively stable, fluctuating between 400,000 and 600,000 since 2018, occasionally breaching 1 million briefly.
Data indicates that a significant amount of Ethereum's traffic is being diverted to other blockchain networks, which are encroaching on its market share, eroding protocol revenue, and forcing network stakeholders to reconsider different strategies for the smart contract network.
The world's first blockchain smart contract network, once the undisputed champion in the general-purpose smart contract platform space, is now facing fierce competition from both its own ecosystem and external participants.
Since 2022, the network fees on the Ethereum mainnet have significantly decreased, partly due to the Dencun upgrade set to launch in March 2024, which will significantly lower fees on Ethereum Layer-2 networks.
This upgrade incentivizes users to switch to these cheaper Layer-2 solutions to save on high network transaction costs, which can reach up to $50 per transaction during congested periods.
High-throughput Layer-1 networks like Solana and Sui are also competing for user mindshare and a portion of the crypto market, forcing the Ethereum Foundation to adapt to the changing environment and reconsider the network's scaling and execution roadmap.
Marc Boiron, CEO of Polygon Labs, recently stated in an interview with Cointelegraph that trying to compete directly with emerging Layer-1 networks on performance metrics like throughput could be "very dangerous" for Ethereum.
Related: Fundstrat: Ethereum (ETH) will become the "best macro trading target" in the next 10-15 years.
Original article: “Ethereum (ETH) transaction volume continues to rise during the push to $5,000, but market share is eroded by competitors”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
