Ethereum remains the dominant DEX chain despite the fall of the domain: CoinGecko

Ethereum’s position in DEX trading is changing, according to the CoinGecko Q3 crypto industry report published on October 14.

The network remains the dominant chain for decentralized exchange, but its market share steadily fell below 40% during the quarter.

Trading volume in Ethereum trended downward between July and September, with its cumulative volume down 19.6% from the previous quarter, he noted.

Meme Coins Driving DEX Competition

Ethereum faces increased competition from other chains in the DEX space, especially Solana and Base. However, its popularity is mainly due to degens minting meme coins.

Solana gained significant traction in DEX trading, ending September with 22% market share and $21.5 billion in volume.

Base, the Coinbase Ethereum L2, grew its DEX market share by 31.4% in the third quarter, surpassing Arbitrum with 13% dominance and $12.3 billion in volume in September.

Source: CoinGecko

Tron was a newcomer to the top ten after displacing Blast, which saw its volumes plummet after its token generation event.

However, this was also boosted by meme coins after the release of this SunPump generator on Tron. The network managed to capture 2% of the market share with $1.7 billion in volume in September, according to CoinGecko.

ETH’s market dominance also took a beating in the third quarter. Its share of the total crypto market capitalization fell 3.6% and ended the quarter at 13.4%. This was the biggest drop among the top 7 cryptocurrencies, despite the launch of Ethereum ETFs in July.

However, the Ethereum ecosystem saw substantial growth in Layer 2 scaling solutions, with total transactions for the top 10 L2s increasing by 17.2% in Q3.

Daily transactions on L2 nearly reached 10 million by the end of September, far surpassing the one million daily transactions on Ethereum’s mainnet, the report noted. This growth indicates a shift in Ethereum mainchain user activity to more scalable L2 solutions.

ETH FUD continues

Developers in the Ethereum ecosystem have taken to crypto social media this week to dispute the waves of FUD that have hit the network recently.

On October 14, Cyber ​​Capital founder Justin Bon added to the FUD by stating that Uniswap moving off-chain “is just the final nail in the coffin, all applications are moving to competing L1 and L2 “.

“Now ETH is falling behind, irrelevant and broken; Ethereum is cooked.

However, BlackRock CEO Larry Fink begged to differ, highlighting the growth potential of the Ethereum network during the company’s third-quarter earnings call this month.

And are you still bearish on ETH? https://t.co/nb1E8tQMsO

— sassal.eth/acc (@sassal0x) October 14, 2024

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