The second-largest cryptocurrency network Ethereum is beginning to lose the DApp war for relevance and it’s not so hard to see why.
- Crowded platform
- Higher gas and processing fees
These are the two biggest reasons newly-built Decentralized applications are ditching the busiest blockchain network for newer and cheaper alternatives.
Ethereum is Losing The Number Game
About a year ago, and prior to the power bull run that saw BTC soar from $6k to $64K and Ethereum from $700 to $2.5k, many investors on the Ethereum network remained comfortable with shelling out an extra 3% to 15% of their total transaction on transaction fees, due to little knowledge of alternatives.
Now, the situation is different because, with many more options now available and a large cost war campaign that saw Polygon position itself as a low-cost high-performance alternative to the Ethereum network, many new users are now flocking to both BSC and Polygon as a suitable substitute. Indices from the last 30 days, reveal over 1000 new DApp entrants to BSC and Polygon in the ratio 8;2, while Ethereum admitted only one new DApp all month long.
Even with the news of the UK’s clampdown on Binance, officially citing regulatory reasons, there’s been less than a little dent in the customer activity statistics for Binance and its native smart chain, BSC, which once set a record for ten million transactions per day on its network.
One of the biggest testaments to BSC’s DApp success is its massive 3.6 million average transactions which it recorded last week through the ever-active Pancakeswap. When put in comparison with Ethereum and its popular Sushiswap, there’s a huge 2.5 million difference in total daily transactions as Ethereum barely scaled over the million mark with an extra 100,000 transactions recorded. Polygon’s Quickswap took the lead last week with approximately 8 million transactions on a single day.
Ethereum is Winning The Value Game
Ethereum may be losing the number game but it is still winning the value game. Ethereum maintained a high average user value over the one-month period under review, gaining almost four times the combined average value of BSC and Polygon within the period under review
The outcome only points to two things; Old and established users on the Ethereum platform have a lot at stake and are comfortable operating Ethereum as an exclusivity feature. They also have users who equally share this belief, after all, Ethereum has the numbers, the traffic, and the whales to go with.
In the end, It’s all just getting started.