Ethereum [ETH] Gets Overtaken by Base Network in DEX Usage, Struggles to Gain Popularity in NFT Sector

Ethereum [ETH] has been one of the most dominant networks in crypto. However, newcomers have slowly started encroaching in the king of altcoin’s territory.

Ethereum [ETH] continues to be one of the leading networks in the cryptoverse. However, other networks are slowly making inroads into the king of altcoin’s territory.

Ethereum gets overtaken

One network that has managed to give Ethereum a run for its money in terms of DEX (Decentralized Exchange) usage is Base.

According to a tweet by Token Terminal, the percentage of daily active users for Uniswap [UNI] (one of the largest DEXes in the crypto space) on the Base network was 36.30%. Ethereum came in second at 23.74%.

Source: X

Ethereum’s waning popularity across various sectors can have adverse impacts on the Ethereum network. Another area where Ethereum was struggling to gain popularity was the NFT sector.

A recent examination of CryptoSlam’s data by AMBCrypto revealed that Bitcoin [BTC] was the most dominant network in terms of NFTs.

Ethereum was far behind in second place in terms of both sales volume and number of buyers and sellers. Interestingly, Polygon [MATIC] and Solana [SOL] were quickly catching up to Ethereum as well.

Over the last few months, activity on the Ethereum network has seen a decline. This could be attributed to several factors, including the rising popularity of other networks and the overall bear market conditions.

An analysis of Token Terminal’s data by AMBCrypto showed that daily active addresses on the Ethereum network fell by 5.8% in the last month.

Due to this, revenue generated by the Ethereum network collapsed.

Source: token terminal

ETH remains unfazed

At press time, ETH was trading at $3,688.41 and its price had faced a minor correction of 0.13% in the last 24 hours.

The network growth for ETH also fell materially during this period, implying that new addresses were unwilling to buy new ETH tokens at the press time price.

Moreover, the velocity at which ETH was being traded plummeted, implying the frequency at which ETH was trading had fallen significantly.

Source: Santiment

Read Ethereum’s [ETH] Price Prediction 2024-25

However, as the dust settles around Ethereum ETFs and more clarity is gained regarding the approval of the remaining Ethereum ETFs, things could change for the better for ETH.

As institutional money from Wall Street pours in, the potential for another uptick is likely.