Ethereum remains the dominant DEX chain despite declining dominance: CoinGecko

According to the CoinGecko Q3 Crypto Industry Report released on October 14th, Ethereum’s position in DEX trading is changing.

Although the network remains the dominant chain of decentralized exchanges, its market share has consistently fallen below 40% in the quarter.

The report noted that Ethereum trading volume has been on a downward trend from July to September, with cumulative trading volume decreasing by 19.6% from the previous quarter.

Meme coins driving DEX competition

Ethereum faces increasing competition from other chains in the DEX space, especially Solana and Base. However, their popularity is mainly driven by the minting of meme coins by degens.

Solana has gained significant traction in DEX trading, with 22% market share and $21.5 billion in trading volume by the end of September.

Base, Coinbase Ethereum L2, expanded its DEX market share by 31.4% in the third quarter, overtaking Arbitrum with a 13% advantage and $12.3 billion in trading volume by September.

Tron is a new addition to the top 10, replacing Blast, whose trading volume plummeted after the token generation event.

However, this was also propelled by meme coins after the launch of such a generator SunPump on Tron. According to CoinGecko, the network managed to capture 2% of the market share in September with a trading volume of $1.7 billion.

ETH's market power also took a hit in Q3. Its share of total crypto market capitalization fell by 3.6% to end the quarter at 13.4%. This was the biggest decline among the top seven cryptocurrencies, even though the Ethereum ETF was launched in July.

However, the Ethereum ecosystem saw significant growth in Layer 2 scaling solutions, with total transactions across the top 10 L2s increasing by 17.2% in Q3.

According to the report, the number of transactions per day on L2 reached nearly 10 million by the end of September, far exceeding the 1 million transactions per day on the Ethereum mainnet. This increase shows that user activity is moving away from the main Ethereum chain and toward more scalable L2 solutions.

ETH FUD continues

Developers of the Ethereum ecosystem this week took issue with the wave of FUD that has plagued the network in recent days on crypto social media.

On October 14, Cyber ​​Capital founder Justin Bong told FUD that Uniswap's off-chain transition is “just the final nail in the coffin, with all apps moving to competing L1 and L2 instead” “I will.”

“Now ETH is left behind, irrelevant and broken. Ethereum is cooked.”

But BlackRock CEO Larry Fink begged for a different opinion, emphasizing the growth potential of the Ethereum network during the company's third-quarter earnings call this month.

And are you still bearish on ETH? https://t.co/nb1E8tQMsO

— sassal.eth/acc (@sassal0x) October 14, 2024