**Ethereum Faces Challenges Amid Market Downturn**
Ethereum (ETH) has been stuck in a tight $230 range since August 9, holding steady at $2,550. This marks a 20% drop from its late July high of $3,300. The broader crypto market slump is partly to blame, but Ethereum has its own hurdles.
- **DApp Activity Drops**: Ethereum's decentralized applications (DApps) have seen a significant decline in activity over the past week, impacting overall network performance.
- **ETF Outflows**: Spot Ether ETFs have experienced $30 million in net outflows since August 9, dampening bullish momentum. Investors hope inflows from major players like BlackRock and Fidelity will offset these losses.
- **High Fees**: Ethereum leads in total value locked (TVL) and transaction volumes but charges higher fees than competitors. This has driven users to alternative networks like Solana, BNB Chain, and TON.
- **Layer-2 Solutions**: Despite challenges, Ethereumâs layer-2 solutions like Base, Optimism, and Arbitrum hit a peak of 348 transactions per second on August 17.
- **TVL Growth**: Ethereumâs TVL grew by 9% in 30 days, reaching 18.6 million ETH on August 18, reflecting medium-term investor confidence.
While Ethereum faces a tough road to reclaim $3,300, the network's ongoing development and layer-2 activity offer some optimism.