Ever Since cryptocurrencies came into existence Ethereum has maintained its position as the second-largest digital asset. In fact, it has been dominating the smart contract markets when analyzed with diverse metrics.
Although there have been challenges of network congestions that caused fees to rise above expectations, Ethereum is unshaken. With its large base of developers and users, It’s still the second-largest crypto-asset by Market Cap.
Experts Claim High Fees on Ethereum Network will Affect Its Price but On-Chain Data Suggests Otherwise
The on-chain data points toward a change in Ethereum market. So the community is now wondering if the legendary Ethereum killer will dethrone it from the second position.
The first metric that alarmed the community about Ethereum is the active addresses on decentralized applications. Ethereum has always dominated the dApps (decentralized applications), but due to high gas fees, it seems that its competitors are ahead with more active addresses.
Last Week, Both SushiSwap and Ethereum’s Rarible NFT were not doing well. The two were far behind FLOW blockchain’s NBA Top Shot that had almost 80,000 active addresses. Also, another crypto that won over Ethereum was TRON Network.
It has more daily active addresses, but this shouldn’t matter too much. Sometimes, some projects manipulate the data. Also, TRON gas fees are almost zero.
So, when you remove useful addresses from the ones that are not making any transactions, no one will notice TRON data. The crypto is still far behind Ethereum, although it ties with Cardano’ADA because of the latter recorded price growth recently. Notably, the Tron Network is in the custody of more than 14.5 billion of all Tether USDT circulating in the market.
This should be enough to increase its network usage. Meanwhile, Cardano active addresses are 90% lower than Ethereum, but they both complete an equal amount of transactions and transfers.
This position is not favorable to Ethereum. It handles 20 billion Tether tokens. It is also managing every transaction that occurs on Chainlink (LINK), USD Coin (USDC), Wrapped ETH (WETH), etc.
Even though the data seem alarming, it is not anywhere near market capitalization. This means that Ethereum is not at risk of losing its position. All the other competitors are not anywhere near Ethereum’s decentralized applications.
Also, in the value of transfers & transactions which Ethereum makes, it is 50 times higher than others. This is in the absence of Cardano’s data. So, as of now, it’s safe to say that Ethereum is still strong in its second position.