Key Takeaway:
- Ethereum’s on-chain activity hit new highs this year with a drop of over 90% in mainnet transaction fees.
- ETH revenue plummeted by 99% since March, reaching historic lows.
- ETH on-chain swaps reached all-time highs, signaling optimism for Ethereum’s chain and DeFi.
- The Dencun upgrade in March reduced Ethereum’s mainnet fees, leading to increased activity.
- Ether ETFs gained attention from Wall Street investors, with over $2 billion traded.
Impact of Reduced Mainnet Fees on Ethereum Activity
Following the Dencun upgrade, Ethereum’s mainnet fees saw a significant decline, promoting higher on-chain activity. The introduction of blobs and proto-danksharding technology enhanced layer-2 capabilities while alleviating congestion on Ethereum’s main layer. Consequently, users flocked to Ethereum’s network for more cost-effective transactions, driving increased engagement and transactions volume.
Wall Street’s Interest in Ether ETFs
Wall Street’s interest in Ether ETFs surged after the approval of funds supported by ETH by the U.S. Securities and Exchange Commission. With over $2 billion in spot Ether ETF trading by the end of August, the market for these financial instruments continues to evolve. The implications of Ether ETFs on Ethereum’s ideology are still under discussion, as market dynamics shift amidst growing institutional involvement.
