Crypto: Ethereum Remains the Undisputed Leader Despite Its Limitations
Despite not reaching the hoped-for $4,000 mark, Ethereum remains a key player in the Web3 space. While its native cryptocurrency price is not moving much, onchain data shows a positive trend. Transaction volumes for Ethereum DApps have risen by almost 38% in the last month, outpacing its rivals. This situation raises questions: will ETH’s price increase along with this growth, or will it fall behind?
Ethereum continues to hold a strong position in the blockchain world, with a 30-day onchain volume of $149.9 billion, far surpassing BNB Chain's $26.6 billion. This dominance reflects a notable 37.7% growth over the past month, while BNB Chain saw a 6% drop.
Critics often point to Ethereum's high transaction fees, averaging around $7.50. However, Layer 2 solutions like Arbitrum, Base, and Optimism are improving the user experience and enhancing security for the main network.
The primary challenge for Ethereum is to improve its scalability without disrupting its valuable Layer 2 ecosystem. This is a complicated but vital task for its future.
To tackle these scalability issues, Ethereum's future plans include important technologies like Ethereum 3.0. The return of sharding, along with a zkEVM engine, could significantly boost the number of transactions per second. Joe Lubin describes this as a chance to bring together computing power.
However, these improvements are not immediate. For now, Ethereum remains a favored choice for institutional investors. Its adjusted staking yield of 2.6% is higher than Solana’s 1%, drawing in essential investments.
Meanwhile, Solana performs well with DApps, generating $338.5 million in fees, but faces challenges due to higher inflation, which may affect its long-term success.
Overall, Ethereum still stands out as the clear leader in the market. With ETF volume hitting a record $1.63 billion last week, it remains a strong reference point. Although issues with scalability continue, its solid fundamentals and potential for innovation bring hope for a brighter future.