Key Points
- Ethereum’s weekly DEX volumes and fee revenue saw a significant drop.
- Trading volumes for top Ethereum-based coins, including meme coins, declined substantially.
Ethereum [ETH] experienced a significant drop in its weekly DEX volumes by 25%.
A sharp decrease in fee revenue was also observed, indicating a reduction in network traffic and user participation.
Decreased Ethereum Trading Volumes
According to data from on-chain analytics firm IntoTheBlock, Ethereum validators amassed a total of $116 million in fees over the week, marking a 41.2% drop.
This decline coincided with a decrease in meme coin trading on the network, an area where Ethereum has traditionally been dominant.
Over the week, trading volumes for popular Ethereum-based coins such as Pepe [PEPE], Shiba Inu [SHIB], and Floki Inu [FLOKI] decreased significantly.
Shift to Solana
The decrease in meme coin frenzy was also mirrored in the drop in trading volume of Ethereum-based decentralized exchanges (DEXs), platforms often used by crypto enthusiasts to exchange tokens.
Data shows that just over $15 billion were facilitated on Ethereum DEXes in the week, indicating a 25% drop from the previous week.
This decrease occurred as investors began turning to the Solana [SOL] blockchain to satisfy their meme coin interest.
Solana’s total DEX volumes rose by 3% over the week, with an influx of new meme coins created on the network attracting more users and subsequently more revenue.
Compared to Ethereum, Solana offered a faster and cheaper alternative for users to trade coins.
The average transaction fee paid by Solana’s users in the last 24 hours was $0.027, while Ethereum charged $1.19 on average to validate a transaction.
The reduced on-chain traffic meant that fewer native ETH tokens were moved, implying lower demand.
This partly contributed to a decline of 5% in its value over the week.
