Is Ethereum's on-chain activity going to die? !
It is said that the on-chain activity has increased greatly this year, whether it is the number of on-chain wallets or the number of transfers, they are all rising:
But behind this number, Ethereum, once regarded as the on-chain overlord, has gradually withdrawn from the stage:
In 2021, the scale of Ethereum's on-chain transfers is larger than BTC, and can even compete with the scale of stablecoins.
But by 2024, the scale of Ethereum's on-chain transfers is only a little bit, even negligible.
BTC has maintained a stable share of on-chain transfers, and the big brother is indeed stable.
Behind the demise of Ethereum is the rise of stablecoins; almost all of Ethereum's lost share has been eaten up by stablecoins.
In places where traditional credit card payments are not very popular, such as North Africa/Middle East/Southeast Asia, the transfer share of stablecoins is higher.
In developed regions such as Western Europe/North America, on-chain transfers are relatively more preferred to Bitcoin.
And stablecoins are growing rapidly around the world, especially in regions such as South America that are plagued by inflation.
Most stablecoins are priced in US dollars. In the long run, most countries will lose their coinage rights.
Why is Ethereum's on-chain transfer dying out? The reason is that Ethereum's on-chain is expensive and slow, and it has a nickname called "noble chain".
If you want to reduce gas fees, you can only turn to Layer2.
I have to say that the experience of Layer2 is really bad.
There was a saying in the chip industry earlier that Intel provides computing power and Microsoft is responsible for eating it.
In the era of smartphones, although the performance of ARM chips is not as good as Intel, it has won the favor of smartphones because of power saving.
And Nvidia, as a performance freak, has won the market in the mining and AI industries.
But by chance, more and more people are using stablecoins to transfer money this year, which is more or less a stable application scenario.
Ethereum has exposed its flaws like this, and it will be gradually eliminated by application scenarios, right?
