自今年3月以来，Layer-2网络如Arbitrum和Optimism的交易量大幅上升，增长率高达430%，Source: Wall Street See
The Solana network not only has a faster processing speed, but its trade fees are also much lower than those of ethereum. The token of Solana has risen by 300% in the past year. Since March of this year, the trade fees of ethereum have plummeted by 87%.
As one of the leaders in the cryptocurrency field, Ethereum has been losing ground recently in the position of 'second place in the coin circle,' especially in the face of pressure from competitor Solana.
Since March of this year, the trading volume of Layer-2 networks such as Arbitrum and Optimism has surged by as much as 430%, while Ethereum's transaction fees have plummeted by 87%.
The Solana network not only boasts fast processing speeds, but also transaction fees far lower than Ethereum. According to Blockworks Research statistics, since October 19th, Solana's on-chain daily fees have consistently exceeded those of Ethereum for several days, with revenue even surpassing tens of millions of dollars on October 24th. The fervor in the meme sector has led various funds to continue flowing into the Solana ecosystem, making it the hottest ecosystem in the current circle.
Although Ethereum's founders and supporters remain hopeful about its future, the current situation is not optimistic based on market performance and the results of technical upgrades.
The plight of Ethereum: Declining transaction fees and decreased user activity.
Despite undergoing multiple technical upgrades, Ethereum's actual performance has been less than satisfactory. Recent changes, especially in user activity and transaction fees, have led to a decline in Ethereum's market performance.
According to Bloomberg's data, since March of this year, the trading volume of Layer-2 networks such as Arbitrum and Optimism has surged by as much as 430%, while Ethereum's transaction fees have plummeted by 87%. Layer-2 solutions, by establishing a second-layer network on the Ethereum main chain, have significantly reduced transaction costs and improved transaction efficiency.
Ether (Ethereum's token Ether) has risen by about 75% in the past year, but compared to the performance of Bitcoin, it still falls significantly short. Bitcoin has more than doubled in the same period, continuously hitting new all-time highs.
In addition, Ethereum's etfs (exchange-traded funds) have not received enthusiastic response from investors. In 2024, the capital inflow of Bitcoin etfs reached 31 billion US dollars, while the capital inflow of Ethereum etfs was only 0.242 billion US dollars.
In 2022, Ethereum underwent a significant upgrade called 'The Merge', aiming to reduce energy consumption by shifting to a Proof of Stake mechanism, while keeping Ethereum's token supply stable.
However, the post-upgrade results did not fully meet expectations. Since the 'Dencun' upgrade in March of this year, Ethereum's token supply has seen inflation, with the number of tokens continuously increasing, shaking confidence in its long-term value in the market.
Solana is seizing the market with its low cost and high efficiency.
While Ethereum faces challenges, the rise of competitive networks like Solana has brought significant pressure to Ethereum.
Solana is considered a strong competitor to Ethereum, with a network that not only processes transactions quickly but also has significantly lower transaction fees compared to Ethereum.
According to Blockworks Research statistics, after October 19th, Solana's on-chain daily fees have been consistently higher than Ethereum's for several days, even exceeding tens of millions of US dollars on October 24th. The high activity in the Meme sector has led various funds to continuously enter the Solana ecosystem, making it the most popular ecosystem in the industry at present.
DefiLlama's data shows that Solana's token has risen by 300% in the past year, far outperforming ethereum. Eliezer Ndinga, Vice President and Head of Global Strategy and Business Development at 21.co, said that networks like Solana with lower costs seem to be catching up with Ethereum.
Max Resnick from Special Mechanisms Group believes that Ethereum is entering a 'danger zone,' especially with the rise of Solana potentially threatening Ethereum's market position:
"Ethereum must focus on scalability, 'in order to protect its users and moats in the short term'".
There are also some analysts who hold opposing views, pointing out that while Solana may have surpassed Ethereum in base layer activity, considering Ethereum's Layer-2 network, Solana is still not enough to surpass Ether.
According to DefiLlama data, Solana accounted for 35.4% of decentralized exchange trading volume in November, up from 27.2% in October. In comparison, Ethereum and its Layer-2 ecosystem held 45.2% market share in November, lower than 50.1% in October.
Despite facing many challenges, one of the founders of Ethereum, Vitalik Buterin, remains confident in Ethereum's future. He stated that many Layer-2 platform teams are eager to strengthen cooperation with the Ethereum ecosystem and are actively 'looking for ways to strengthen collaboration and support the Ethereum ecosystem'.
Editor / jayden
