Van Eck expressed concern that Ethereum continues to struggle with declining market share and fee income, while citing strong macroeconomic support and inflows from institutional investors. He said he remains optimistic about Bitcoin’s outlook for the quarter.
According to the company’s September summary report, Bitcoin rose 7.7% in the month, supported by Federal Reserve interest rate cuts and China’s economic stimulus. This outpaced Ethereum, which rose only 3.2% during the same period.
Bitcoin and Ethereum
VanEck said Bitcoin’s rally, which saw net inflows into U.S. Bitcoin exchange-traded products (ETPs) total $1.2 billion, is a sign of growing investor confidence. These ETPs have accumulated more Bitcoins than have been mined since their launch and play an important role in price formation.
In contrast, Ethereum continued to lose ground as its market share hit a five-year low, resulting in significantly lower fee generation. Despite the poor performance, Ethereum’s fee market share showed signs of stabilization mid-month, recovering from 31% in August to 45% in September.
The transition to a payment layer on Ethereum’s Layer 2 blockchain with the implementation of EIP-4844 will reduce demand for block space and transaction revenue will significantly increase from $7.2 billion in March to $1.2 billion in September. decreased.
VanEck suggested that while Ethereum’s long-term strategy aims to support mass adoption, short-term performance declines could threaten its market position. Meanwhile, Bitcoin continues to show resilience, with inflows from institutional investors and strong price momentum strengthening its dominant position in the digital asset space.
top metrics
Layer 1 blockchains dominated in September, with Sui leading the pack, surging 118% to a $5 billion market cap. The network also saw a massive 140% increase in Daily Active Addresses (DAA) and a 48% increase in revenue, primarily due to memecoin speculation and native stablecoin activity.
Aptos also performed well, rising 23% despite unlocking $90 million worth of tokens. This growth was primarily due to upgrades to the Raptr software, which increased transaction speeds and increased daily active addresses by 30%.
Solana surged 14% during the period, making it into the top three. This was facilitated by the long-awaited release of the “Firedancer” upgrade, which promises improved transaction throughput and network reliability. Firedancer, currently on testnet, achieved 89,000 transactions per second. This is a notable improvement for the Solana network.
Polygon, on the other hand, underperformed the broader market, dropping 4% due to a steep decline in daily active users and a 50% reduction in accrued fees. Despite these challenges, the network continued on its Polygon 2.0 roadmap and successfully migrated the MATIC token to POL for improved interoperability and scalability.
Meme coins recorded a 31% rise in September, followed by DeFi tokens with a 19% rise. Layer 1 tokens overall rose 11%, and crypto assets also rose 11%.
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