ETH Price Stalls as Ethereum DApp Volumes Hit 38% Monthly Growth

• Ethereum (ETH) dominates in on-chain activities as it generated $163.7 million in fees in the last 30 days against the $133.4 million recorded by Solana (SOL).
• Ethereum also recorded an on-chain volume of $149.9 billion, outshining BNB Chain, which has a lower transaction fee. 

Ethereum (ETH) is struggling to retest its crucial resistance level at $3.2k as it declined by 1.6% in the last seven days. However, its on-chain activities look positive. In the last 30 days, Ethereum’s on-chain volume surged to $149.9 billion.

According to our research, this outpaced close competitors like the BNB Chain which only managed $26.6 billion despite offering lower fees. Specifically, ETH saw its transaction activity growing by 37.7% against the 6.6% recorded by the BNB Chain.

Within the period under review, Ethereum faced tough competition from Solana (SOL), which recorded an on-chain volume growth of 83%. According to our research, this contributed to the $8.3 billion Total Value Locked (TVL) witnessed by Solana. Despite leading deposits with $59.4 billion, Ethereum was outpaced by Solana in terms of decentralized exchange (DEX) volumes.

In the aspect of fees, Ethereum dominated with a fee generation of $163.7 million over 30 days. According to DefiLlama, Solana also recorded $133.4 million in fees, taking the second position. Interestingly, Tron generated $51 million in fees, coming third in that category. Meanwhile, the three leading Decentralized Applications (dApps) on Solana – Raydium, Jito, and Photon also had a fee generation amount of $338.5 million.

Ethereum (ETH) and Solana (SOL) On-chain Performance

In our research, we discovered that Solana users barely benefitted from the success of its stakes and investors. Its annual staking reward of 6.2% and equivalent SOL inflation of 5.2% implies that the adjusted gain is very small.

Ethereum, on the other hand, offers a 3.3% annualized reward rate while its equivalent ETH inflation rate stood at 0.7% or lower.

According to analysts, Ethereum’s 2.6% adjusted return is more attractive than Solana’s 1%, unlocking institutional interest to maintain its dominance in TVL. However, its main issue is reported to be the lack of a clear strategy for achieving scalability without affecting the layer-2 ecosystem. Even that, Ethereum 3.0 is expected to reintroduce “sharding and leveraging a zero-knowledge Ethereum Virtual Machine (zkEVM) at the base layer” to improve scalability. This was disclosed by Consensys CEO Joe Lubin.

The interesting thing about that is that way of using layer 1 wasn’t possible a few years ago when we discarded the idea of execution sharding; what we needed to do was throw open this divergent exploration and a lot of stuff came back…You’re just boiling down a giant amount of computation at different layers and amortizing a lot of computation into a single transaction. If you do that every two seconds or less, then you get a lot of transactions per second.

At press time, ETH was trading at $3,100. However, its daily trading volume was 19% down with $28 billion changing hands.