The Ethereum blockchain is currently setting historic records in terms of transactions and the number of active addresses, alongside a significant drop in fees. This is a favorable equation, with the Fusaka update due to take place in early December.
Ethereum: increased activity and lower fees
Since its launch in 2015, the Ethereum blockchain has established itself as the Money Lego platform on which anything can be built and tested in real time. It has maintained this position despite fierce competition in the sector, particularly at a time when its exorbitant fees prompted the creation of a horde of Ethereum killers determined to take market share.
Despite everything, the second most valuable project in the crypto ecosystem continues to attract the attention of developers and investors, particularly since stablecoins—more than 60% of which are available on its blockchain—have become the new monetary trend in traditional finance.
At the same time, decentralized finance (DeFi) is emerging as the new champion of on-chain revenue, with an estimated 63% share of the new all-time high of $9.7 billion recorded in the field in the first half of this year. This is a sector where Ethereum still captures more than 56% of the total value locked (TVL).
This favorable context is also meeting with growing adoption. Indeed, the number of active addresses on the Ethereum blockchain is currently hitting record highs, while its transactions are exceeding the historic levels of 2021. And for good reason: its fees are currently at their lowest.
Ether (ETH) still far from Ultra Sound Money
Some would say that Ethereum’s strength is not necessarily reflected in the price of ETH, which just reached an all-time high last August at less than 3% of its previous ATH in 2021, while Bitcoin is up more than 80% in the same scenario.
It must be said that the promise of a deflationary Ether since The Merge—the transition to Proof of Stake in September 2022—is currently at odds with the reality of the figures published on the Ultra Sound Money website. In fact, its available quantity has increased by more than 650,000 ETH since that symbolic date, despite the annual burn of 640,000 units.
Ethereum’s roadmap is now heading towards the Fusaka upgrade, recently scheduled for early December. This new stage’s main objective is to improve the scalability of its blockchain, in particular by increasing the capacity of its blobs and optimizing data storage and validation management.
