A venture capital company notes that Ethereum’s growth and demand are “unmatched” despite the high transaction fees associated with using the Ethereum network. According to the company, decentralization is more essential than scalability. This means that Ethereum’s “popularity is also a double-edged sword,” as rival blockchains “promise higher performance and lower pricing” to capture market share from Ethereum.
A data scientist and other team members worked together to produce some major conclusions from the study. The head starts that Ether had and the robustness of its community is primarily responsible for its competitive advantage. The analysis indicates that Ethereum has 4,000 active monthly developers, while Solana, which is in the second position, has just 1,000 monthly developers. Bitcoin and Cardano are the next in line, with their prices hovering around $500 apiece. Despite the high cost of transactions, several industry professionals have emphasized how vital it is that Ether’s network continues to have healthy growth in development.
The phrase “Ethereum’s overwhelming mind share” helps explain why its customers have been willing to pay more than $15 million in fees per day solely to use the blockchain. Considering the Ethereum price, this statement is rather remarkable. As of May 12, the estimated transaction fees paid on the blockchain over a seven-day average suggest that demand for Ethereum is strong. The numbers suggest that Ethereum is responsible for a total income of $15.24 million. Compare BNB Chain to Avalanche and Fantom to Polygon and Solana, which are responsible for about $2.5 million in charges.
According to the research, examining the long-awaited improvements to Ethereum reveals that layer-2 scaling solutions are actively working on cutting costs and boosting transaction speeds. Although the “long-awaited” improvements have been delayed, the research conducted demonstrates that as of May 12, active addresses and transactions on alternative blockchains such as Solana, Polygon, and BNB Chain are already far ahead Ethereum over a 30-day average. Solana’s 15.4 million active addresses house more than 15 million active addresses and more than 15 million daily transactions. BNB Chain and Polygon, which have a combined total of 9.4 million and 5.5 million, respectively, in the rankings, hold the positions of second and third place in the rankings. They concluded that it would not be a situation where the winner takes all. Blockchains are a popular product of the next wave of computing technology. Personal computers and the internet were in the 1990s and 2000s, and mobile phones were in the previous decade. If you’re looking for something innovative, we believe you can find it here.
Other important takeaways from the report include the total value locked in the DeFi sector is approximately $113 billion, making it the 31st largest bank in the United States; estimates that Web3 adoption could reach 1 billion users by 2031; and that NFTs have generated $3.9 billion in revenue for creators so far.
Even After This, Why Is Ethereum Still a Popular Choice?
Ethereum is among the most popular cryptocurrencies currently available, and Bitcoin only exceeds its market share. In terms of the total value, Ethereum is only second to Bitcoin. In 2022, Ethereum is gaining in popularity, increasing the value of its native coin, Ether (ETH). In 2015, when Ethereum was first introduced to the public, the cost of one Ether (ETH) token was just $0.311. Although it got as close as $5,000 in the previous year, it has reached an all-time high of $2,930. Many industry professionals think that 2022 will be Ethereum’s year, with some forecasting that the value of Ethereum will increase by as much as 400 percent throughout the remainder of this year.
Ethereum is a customizable blockchain that has software networking with the capacity to construct and focus on new tools, applications, smart contracts, DeFi, and NFTs. This is one of the many ways Ethereum is distinguishable from Bitcoin. Many explanations explain why Ethereum has become so popular and why that popularity is just growing.
One is that the management of autonomous, decentralized organizations will get better over time. The second is that the decentralized finance (DeFi) ecosystem will merge with traditional finance. The third reason is that Ethereum is moving toward proof of stake, moving users from the first layer to the second layer. In the blockchain community currently, almost everything unique and novel is unfolding in the Ethereum network.