- Solana and Sui blockchain networks outperformed Ethereum in 2024, says Matrixport.
- The drop in ETH gas fees reflects the decreased on-chain activity in 2024.
Ethereum Maxis got disappointed with Ether’s underperformance and failure to hit an all-time high this year. While Bitcoin crossed the long-awaited $100,000 milestone and reached an all-time high of $108,135 on Dec 17, Ethereum struggled to cross the $4,000 mark and stay afloat.
The latest report by Matrixport highlighted other layer1 blockchains showing strength and gaining attention in comparison to Ethereum. In particular, the report mentioned Solana and Sui blockchains growth and how their native tokens outperformed Ethereum in 2024. With memecoin launching platform Pump.fun and automated trading bots tailored to Solana, its ecosystem has grown multifold in 2024.
Ethereum Gas Fees Drops With Decreased On-Chain Activity
ETH Gas Fees (Source: Matrixport)
The drop in ETH gas fees implies decreased on-chain activity of the network. Despite the successful completion of Ethereum Dencun upgrade in March 2024, the blockchain struggled to maintain its dominance over other dApp-enabled networks. The low trading volume further raised concerns over Ethereum’s potential to regain its strength.
However, Ether market outlook for 2025 looks promising because ETH historically performed well in Q1s after Bitcoin halvings and US elections. On the other hand, Ethereum ETFs recorded substantial inflows despite not having any significant influence on ETH market price.
Solana and Sui gave tough competition to Ethereum in terms of growth, development, and adoption in 2024. They proved technological developments and user attention are not limited to top blockchain networks.
Even though several industry leaders predicted that Ethereum may surge in the anticipated larger bull run in 2025, Matrixport doesn’t strongly believe in it.
Highlighted Crypto News Today:
Bullish Comeback or Continued Struggles for Ethereum (ETH)?
