Ethereum
Solana Beats Ethereum in Key Areas: Are Investors Turning Away from ETH?
- Solana outperformed Ethereum in terms of fees paid to validators.
- Usage on the Ethereum network declined as the price of ETH fell.
The popularity of Solana [SOL] The network helped it attract a large number of users, due to which an increase in activity on the network was observed.
Gas is paid
Due to increasing activity on the network, fees paid to validators on the Solana network have increased.
Ethereum [ETH] has long been the dominant player in the smart contract platform space. Solana’s growing popularity, especially if its fees remain competitive with those of Ethereum, could reduce Ethereum’s market share.
This weakens Ethereum’s position as the go-to blockchain for developers and users.
Source: Artemis
The state of the Ethereum network is also dire. Over the past month, the number of daily active addresses on the Ethereum network has decreased significantly.
According to Token Terminal, the number of daily active users on the network has decreased by 2.9% over the past 30 days.
Furthermore, the average revenue generated by the network also decreased significantly by 81.6% during this period.
Source: Token Terminal
NFT transactions on the Ethereum network have also declined significantly over the past month.
The popularity of NFTs from alternative chains such as Bitcoin [BTC] And Solana [SOL] could take over a large part of the Ethereum network.
Source: Santiment
ETH also failed to fare in terms of price. Since April 8, its price has declined significantly, exhibiting several lows and highs, indicating a downtrend.
Along with this, the CMF (Chaikin Money Flow) for Ethereum dropped significantly to -0.21 during this period. This means that money flowing into ETH has decreased significantly over the past few days.
Ethereum’s RSI (Relative Strength Index) has also declined during this period, implying that momentum was on the bearish side at the time of writing.
Source: Commercial View
Read Ethereum [ETH] Price prediction 2024-25
New addresses are multiplying
Along with this, ETH velocity has dropped, indicating a reduced frequency of transactions. In contrast, the overall growth of the ETH network has increased significantly.
This means that new addresses continued to show interest in the ETH token.
Source: Santiment