Ethereum, the leading smart contract platform, has seen a significant decrease in fee revenue, with a 41.2% plunge, as reported by the on-chain analytics firm IntoTheBlock. This reduction, amounting to a collection of only $116 million in fees over a week, hints at a fall in both network traffic and active user engagements on the Ethereum blockchain.
Interest in Meme Cryptocurrencies Dips
The downturn in revenue is closely tied to the diminishing transaction volumes of meme-centric tokens, such as Pepe, Shiba Inu, and Floki Inu. These cryptocurrencies, typically transacted heavily on Ethereum, have seen less activity, correlating with the observed revenue drop. Analytical data from Santiment shows this decline followed a period of intense interest earlier in the month. In parallel, Ethereum’s decentralized exchanges noted a 25% decrease in their trading volumes, totaling around $15 billion for the week, according to DeFiLlama’s findings.
Shift in Meme Token Transactions to Solana
As a possible reaction to the waning interest in Ethereum’s meme tokens, Solana‘s decentralized exchanges experienced a 3% uptick in their transaction volumes. The increase in activity on the Solana blockchain is credited to the launch of new meme tokens, which drew in a larger user base and revenue stream, offering a more cost-effective and rapid transaction environment. When compared to Ethereum, which currently charges an average fee of $1.19 per transaction, Solana’s average fee is a mere $0.027. This competitive pricing, along with lower on-chain traffic on Ethereum, has led to a 5% drop in Ethereum’s value over the same period.