Ethereum has a promising future, according to Grayscale Research, but it will face obstacles and depend on how it handles the competition. Solana and Tron, for example, are performing better in day-to-day transactions. However, when it comes to weekly advancements and earnings, Ethereum takes center stage. Ethereum does have several security features to improve.
Transaction fees are currently where it lags. Because of Ethereum’s impending updates, net deflationary supply, possible approval of the Spot Ether ETF, and projected $2 billion in network revenue production in 2023, Grayscale Research is bullish about the cryptocurrency. Furthermore, Grayscale Research thinks that the network’s use cases are growing with time, which strengthens the bullish outlook.
Similar to Bitcoin, Ethereum is also capitalizing on the first mover advantage. When it comes to the valuation of tokens, Bitcoin still rules the market. Ethereum, however, has an advantage thanks to its smart contract features. This particular product aids in the architecture of decentralized apps, or dApps.
Ethereum outperformed all other L1 solutions on the market in terms of revenue, bringing in over $2 billion in the preceding year. Tron, with $425 million, was the next greatest wager on the list. The fact that its entire value is locked and that dApps are hosted on the network both say a lot. For 2023, they are $45.9 billion and $4,479, respectively.
Daily addresses, which trail Solana, Tron, and Polygon in the same rank with 695k, 1,467k, and 574k, respectively, at 377k, contradict that standing. Ethereum, with its $352 billion market capitalization, is still at the top.
The estimated date of the Dencun upgrade is March 13, 2024. It is a significant advancement towards improving scalability in the cryptocurrency smart contract platforms market. Ethereum might become the centre of attention thanks to Spot Ether ETF. The token has increased 1.80% in the previous day and was last seen listed at $3,101.41. According to Ethereum predictions, Ether will trade at $5,097.21 at the end of 2024. This year, Dencun and Spot Ether ETF will undoubtedly dominate the market.
Because of the Merge update, Ethereum is currently experiencing deflation; the PoS mechanism and the burning of transaction fees are causing the amount of ETH to decrease. To put the ecosystem in a better, more advantageous position, it has been met with security, revenue, network effects, and liquidity.
Grayscale Research claims that the network’s superior performance is simply because it is still in its adolescent stage. It indicates that the network is operating as though it has launched and is awaiting significant development, even though it has been on the market for a considerable amount of time. Ethereum will only get bigger as improvements are made to narrow the difference in cost and throughput.
A straight comparison of Solana and Ethereum demonstrates the current state of the market. In terms of market capitalization, Solana is not as strong as the industry leader, but it quickly overtakes it in terms of daily transactions and average transaction costs. They are currently 24,128k and $0.001, in that order. Ethereum leads the revenue and market capitalization sectors, but its $1,162k and $2.3 stats, respectively, lag.
The next to take the floor will be ETH 2.0. It includes a division of networks, the introduction of specialized components according to their roles. This includes the anticipated specialized components, such as processing transactions, storing transaction data, and confirming the legitimacy of transactions. Furthermore, the network is about to emerge from its teenage stage thanks to the Dencun upgrade.
