Ethereum News: Ethereum DApp Volumes Surge 38% — Will ETH Price Follow?
Ethereum’s decentralized application (DApp) activity is on the rise, with a 37.7% increase in onchain volumes over the past month, reaching a staggering $149.9 billion, according to data from DefiLlama. Despite this, Ether (ETH) price has struggled to maintain levels above $3,200, leaving traders questioning when Ethereum might resume its bullish trajectory.Ethereum Maintains Network DominanceEthereum (ETH) remains a leader across several key metrics:Total Onchain Volume: Far ahead of its closest competitor, BNB Chain, whose volumes reached $26.6 billion, Ethereum boasts over 5x the activity.Transaction Fees: Ethereum generated $163.7 million in fees over the last 30 days, crucial for maintaining network security.Total Value Locked (TVL): Ethereum commands $59.4 billion, dwarfing Solana’s $8.3 billion, despite Solana’s impressive 83% growth in on-chain activity.Layer-2 solutions like Arbitrum, Base, and Optimism are driving Ethereum’s scaling efforts, with users benefiting from lower transaction costs while still relying on Ethereum for security.Solana Presents a Growing ChallengeSolana’s rapid growth is Ethereum’s most significant competition:DEX Volumes: Solana surpasses Ethereum (ETH) with leading DApps like Raydium, Jito, and Photon generating $338.5 million in fees within 30 days.Fee Revenues: Solana earned $133.4 million in network fees, showing its strength in DApp activity.However, Solana’s staking economics lag behind Ethereum (ETH) . While Solana offers a 6.2% staking reward, its 5.2% inflation rate significantly reduces net returns. In contrast, Ethereum’s 3.3% staking rewards, combined with a much lower inflation rate of 0.7%, make it a more attractive option for institutional investors.Scalability Challenges and the Road AheadEthereum’s biggest hurdle remains achieving scalability without disrupting its layer-2 ecosystem. The roadmap for Ethereum 3.0, which aims to reintroduce sharding and leverage zero-knowledge Ethereum Virtual Machine (zkEVM) technology, promises substantial improvements. However, this vision may take years to materialize.From an on-chain perspective, Ethereum’s fundamentals position it for long-term growth. However, short-term price performance may hinge on delivering its scalability solutions while retaining its competitive edge over rivals like Solana, according to Cointelegraph.Read More: Why Is XRP Price Down Today? Profit-Taking and Controversies Weigh on SentimentEthereum (ETH) Price Targets $3.7K Amid Growing Smart Money Confidence and On-chain StrengthBlackRock Supports U.S. Strategic Bitcoin Reserve, Says Satoshi Action Fund CEO