Key Points
- Base protocol has surpassed Ethereum in Uniswap’s DEX volumes.
- Ethereum’s ecosystem is stagnating with a decline in active addresses on the network.
Base Outperforms Ethereum
Base has become the protocol with the highest Uniswap DEX volumes, surpassing Ethereum. This indicates a shift in the dominance of Ethereum, which has been one of the most influential networks in the crypto realm. However, new entrants have begun to challenge its position.
Base managed to outperform Ethereum in terms of DEX usage. According to a tweet by Token Terminal, Uniswap’s daily active users on the Base network accounted for 36.30%, while Ethereum accounted for 23.74%.
Ethereum’s Declining Popularity
The decreasing popularity of Ethereum across different sectors could have negative implications for the network. Ethereum has also been struggling to gain traction in the NFT sector. Data from CryptoSlam revealed that Bitcoin was the most dominant network in the NFT space, with Ethereum trailing behind in terms of sales volume and number of buyers and sellers. Polygon and Solana were also gaining on Ethereum.
Popular NFT collections such as Bored Ape Yacht Club and Mutant Ape Yacht Club saw a significant decline in interest. Both collections’ floor prices and sales volumes have dropped in recent months. These factors have contributed to a decrease in activity on the Ethereum network.
Token Terminal’s data shows a 5.8% drop in daily active addresses on the Ethereum network over the past month. This decline has led to a decrease in revenue generated by the Ethereum network.
ETH’s Performance Amidst Challenges
Despite these challenges, Ethereum’s price remained relatively stable. At the time of writing, ETH was trading at $3,688.41, with a minor correction of 0.13% in the last 24 hours. The network’s growth also decreased significantly during this period, indicating that new addresses were reluctant to purchase new ETH tokens at the current price.
The trading velocity of ETH also declined, indicating a significant decrease in the frequency of ETH trading. However, with more clarity around the approval of Ethereum ETFs and the potential influx of institutional money from Wall Street, things could improve for ETH.
