Ethereum's onchain activity is booming, despite its price hovering around $3250, while we all hoped for $4000 since ETFs were approved.
Layer 2 blockchains are driving this growth. They're transforming how transactions work on Ethereum. Users and investors are flocking to these solutions.
The numbers are eye-popping. Ethereum and Layer 2 chains saw onchain activity jump 127% in early 2024. More users and higher transaction volumes are behind this surge. A Coinbase and Glassnode report highlights the trend.
Daily active addresses on Ethereum and L2s hit record highs. Vitalik Buterin, Ethereum's co-founder, calls L2s the "ultimate playground for action". He's not wrong. These platforms are attracting individuals and profit-hungry institutions alike.
L2 chains like Linea, Base, and Arbitrum are killing it. They boast 1.8 million active daily addresses. These solutions offer cheap transactions before finalizing them on Ethereum. It's a win-win for efficiency and security.
The Ethereum Dencun upgrade in March 2024 was a game-changer. It slashed transaction fees by 58% in Q2. This happened even as transaction numbers went up. Lower costs made Ethereum more accessible. Users jumped at the chance to get involved.
Ethereum's versatility is another draw. Lending, staking, and trading are just a few use cases. The report authors reckon adoption will keep growing. Existing apps are maturing, and new ones are popping up left and right.
BlackRock's getting in on the action too. They've launched Ethereum spot ETFs. These products faced some hurdles, but investors are biting. The iShares Ethereum Trust ETF (ETHA) scooped up 77,000 ETH in days. That's about $277 million, folks.
This move by BlackRock is a big deal. They're already top dogs in the Bitcoin ETF market. Now they're doubling down on crypto. It shows how traditional finance and blockchain are getting cozy.
Nate Geraci from the ETF Store thinks staking in Ethereum ETFs is inevitable. He reckons it's a question of when, not if. That's good news for the Ethereum ecosystem.
But it's not all smooth sailing. Tron's nipping at Ethereum's heels with 81 billion transactions. Competition in crypto is heating up. Blockchain innovation isn't slowing down anytime soon. Buckle up, it's gonna be a wild ride.