Ethereum’s decentralized application (DApp) activity is on the rise, with a 37.7% increase in onchain volumes over the past month, reaching a staggering $149.9 billion, according to data from DefiLlama. Despite this, Ether (ETH) price has struggled to maintain levels above $3,200, leaving traders questioning when Ethereum might resume its bullish trajectory.

Ethereum Maintains Network Dominance

Ethereum (ETH)  remains a leader across several key metrics:

  • Total Onchain Volume: Far ahead of its closest competitor, BNB Chain, whose volumes reached $26.6 billion, Ethereum boasts over 5x the activity.

  • Transaction Fees: Ethereum generated $163.7 million in fees over the last 30 days, crucial for maintaining network security.

  • Total Value Locked (TVL): Ethereum commands $59.4 billion, dwarfing Solana’s $8.3 billion, despite Solana’s impressive 83% growth in on-chain activity.

Layer-2 solutions like Arbitrum, Base, and Optimism are driving Ethereum’s scaling efforts, with users benefiting from lower transaction costs while still relying on Ethereum for security.

Solana Presents a Growing Challenge

Solana’s rapid growth is Ethereum’s most significant competition:

  • DEX Volumes: Solana surpasses Ethereum (ETH) with leading DApps like Raydium, Jito, and Photon generating $338.5 million in fees within 30 days.

  • Fee Revenues: Solana earned $133.4 million in network fees, showing its strength in DApp activity.

However, Solana’s staking economics lag behind Ethereum (ETH) . While Solana offers a 6.2% staking reward, its 5.2% inflation rate significantly reduces net returns. In contrast, Ethereum’s 3.3% staking rewards, combined with a much lower inflation rate of 0.7%, make it a more attractive option for institutional investors.

Scalability Challenges and the Road Ahead

Ethereum’s biggest hurdle remains achieving scalability without disrupting its layer-2 ecosystem. The roadmap for Ethereum 3.0, which aims to reintroduce sharding and leverage zero-knowledge Ethereum Virtual Machine (zkEVM) technology, promises substantial improvements. However, this vision may take years to materialize.

From an on-chain perspective, Ethereum’s fundamentals position it for long-term growth. However, short-term price performance may hinge on delivering its scalability solutions while retaining its competitive edge over rivals like Solana, according to Cointelegraph.
Read More: 
Why Is XRP Price Down Today? Profit-Taking and Controversies Weigh on Sentiment
Ethereum (ETH) Price Targets $3.7K Amid Growing Smart Money Confidence and On-chain Strength
BlackRock Supports U.S. Strategic Bitcoin Reserve, Says Satoshi Action Fund CEO

#ETH