- Ethereum DApp volumes gained 38% in a month, reaching $1.49 billion and dominating other blockchains like BNB Chain.
- Ethereum leads in fees, total value locked (TVL), and staking rewards, making it attractive for institutional deposits.
- Ethereum’s roadmap for scalability improvements, including sharding and zkEVM, could enable it to outperform the broader altcoin market capitalization if delivered successfully.
Ethereum’s onchain activity has seen impressive growth recently, dominating competitors. However, ETH price has struggled to keep up.
Ethereum’s Onchain Volume Surges
Ethereum’s onchain volume over the past 30 days reached $149.9 billion, far exceeding any competitor. This represents a 37.7% increase over the previous month. Meanwhile, BNB Chain, the second largest blockchain by volume, reached just $26.6 billion, down 6% from its previous month.
Ethereum Leads in Fees, TVL and Staking Rewards
Ethereum generated $1.637 billion in fees over 30 days, demonstrating its importance for network security. Solana earned $1.334 million in fees over the same period. Meanwhile, Ethereum boasts total value locked (TVL) of $594 billion, compared to Solana’s $8.3 billion.
Additionally, Ethereum offers more attractive staking rewards. Its annualized reward rate is 33% with inflation of 0.7% or lower, for an adjusted return of 26%. Solana’s adjusted staking return is just 1%.
Ethereum Faces Scalability Challenges
Ethereum’s biggest hurdle is achieving scalability without disrupting its layer-2 ecosystem. Ethereum 3.0 aims to improve scalability through sharding and leveraging zkEVM technology. However, this could take years to implement successfully.
Ether Price Yet to Catch Up
Despite Ethereum’s onchain dominance, Ether price has lagged the broader altcoin market recently. However, if Ethereum can deliver on its technical roadmap, Ether may soon reflect the network’s competitive advantages in onchain activity.
