The transaction volume in Ethereum has significantly increased, however, rising competition from other blockchains affects market share.
Current Transaction and Active Address Data
Ethereum's current average daily transaction activity reaches record levels exceeding 1.7 million transactions. In comparison, layer-2 networks like Arbitrum and Base recorded over 3.4 million and 8.6 million transactions, respectively. Additionally, Aptos, a competing layer-1 blockchain, hosted 3.8 million transactions on Monday. Active addresses in Ethereum remain relatively stable, fluctuating between 400,000 and 600,000, with occasional spikes above 1 million.
Competition Within and Beyond Ethereum Ecosystem
As the first smart contract network, Ethereum faces growing competition from both within its own layers and from external players. Network fees on the Ethereum base layer have declined since 2022, largely due to the Dencun upgrade which took place in March 2024. This upgrade has provided users with cheaper layer-2 solutions, leading to a transition due to high transaction costs that could reach $50 during congestion. New high-throughput layer-1 networks like Solana and Sui are also vying for user attention and crypto market share.
Future of Ethereum Amidst Changing Competition
According to Polygon Labs CEO Marc Boiron, attempting to compete directly with new layer-1 networks on performance metrics may be 'dangerous' for Ethereum. Given the current situation, the Ethereum Foundation is forced to reconsider its scaling and execution strategy to adapt to market changes.
The growth in transaction numbers in Ethereum underscores the active usage of the network; however, competition from other blockchains presents new challenges that require rethinking development approaches.
