San Francisco, CA – Ethereum, a dominating presence in the crypto world, is facing challenges as newer networks encroach on its territory. Base, a protocol, has surpassed Ethereum in DEX volumes, showcasing the shifting landscape within the crypto space.
According to Token Terminal, daily active users of Uniswap on the Base network surpassed those on Ethereum, highlighting a trend of declining activity on the Ethereum network. This shift is evident in the NFT sector, where Bitcoin has taken the lead over Ethereum in terms of dominance, sales volume, and number of buyers and sellers. Other networks, such as Polygon and Solana, are also gaining ground on Ethereum in the NFT space.
Notably, prominent NFT collections like Bored Ape Yacht Club and Mutant Ape Yacht Club have experienced a decline in interest, leading to lower floor prices and sales volumes. As a result, Ethereum’s network activity has decreased, with daily active addresses falling by 5.8% in the last month, translating to a collapse in revenue generated by the network.
Despite these challenges, Ethereum remains resilient, with its current price at $3,688.41 and a minor correction of 0.13% in the past 24 hours. However, the network growth for ETH has significantly slowed down, indicating a reluctance among new addresses to purchase tokens at the current price. Additionally, the frequency of ETH trading has decreased, reflecting a change in trading patterns for the cryptocurrency.
Looking ahead, as clarity emerges around Ethereum ETFs and institutional money flows in from Wall Street, there is potential for a positive shift in ETH’s fortunes. The approval of more Ethereum ETFs could lead to renewed interest and investment in the network, signaling a possible uptick in the future.