In simpler terms, there’s been a significant increase in network usage across the wider Ethereum community. As per Dune Analytics’ data, approximately 10 million wallets are interacting with the Ethereum mainnet and its layer-2 platforms such as Base, Optimism, and Arbitrum – excluding those associated with Ordinals.
Ethereum Ecosystem Vibrant: Record 10 Million Active Wallets
Reaching this achievement can be attributed to the effective rollout of the Dencun Upgrade in mid-March 2024. This upgrade, among several others planned for Ethereum, significantly tackled key issues, most notably those concerning scalability and high gas fees.
As more wallets engage with different protocols on the mainnet, sidechain, and off-chain networks, one industry expert at X is optimistic, projecting a potential increase from 10 million to 100 million active wallets during the next bull market. This growth will be fueled in part by the advancements introduced by Dencun, which have made layer-2 transactions using rollups more affordable.
Using “blobs” as a novel transaction type, Dencun stores data untouched by the Ethereum Virtual Machine (EVM). These “blobs” function as additional data storage compartments within blocks, facilitating more efficient block verification. Importantly, this method maintains data accessibility – an essential improvement for Ethereum layer-2 projects adopting Dencun.
TVL Across Layer-2 And DeFi Protocols Fast Rising
Due to decreasing gas costs and advanced layer-2 solutions like Dencun, more users have been drawn to Ethereum, reinvigorating the entire ecosystem. This is evident in the rising total value locked (TVL) not only on the mainnet but also across various layer-2 platforms.
Based on L2Beat’s report, the top layer-2 platforms such as Arbitrum and Optimism have experienced an average growth of more than 10% in the past week. Currently, these platforms collectively manage assets worth over $39 billion. This upward trend is further supported by data from DefiLlama. Over the past six months, the total value locked (TVL) in leading decentralized finance (DeFi) protocols has surged from approximately $20 billion to over $54 billion as of now.
Even with progress being made, issues persist for Ethereum. Its structure is delicate, making it difficult to handle increased usage effectively. Consequently, there’s a strong possibility that gas fees will increase significantly during the next market surge, particularly if ETH values exceed $4,000 and set new record highs.
Furthermore, many meme coin creators might opt for platforms such as Solana or Avalanche instead, potentially reducing the hustle and bustle on Ethereum.
Despite the current challenges, Ethereum backers stay optimistic. With cryptocurrency prices expected to level off and potentially follow the trends of Q1 2024, there will be increased interest in investigating some of the most successful protocols that have been introduced on the main network or through layer-2 solutions.
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2024-04-25 03:41