Ethereum might be struggling at spot rates, capped below $2,400 and down to multi-year lows versus Bitcoin. However, based on other metrics, especially compared to other smart contract platforms like Solana and the BNB Chain, Ethereum is still king.
Ethereum Is Still King: Here’s Why
Taking to X, one analyst notes that though most users are currently fixated on price and asset valuation, they continue to overlook other important, equally crucial metrics.
In his analysis, one of the most important factors to gauge whether the platform is performing and active, functioning as designed, is the number of active dapps running on the public ledger.
The number of active dapps, or by the analyst’s words, the “GDP” of the network, is key. This metric reflects the economic activity of the platform now that all public ledgers will depend on revenue paid by deploying smart contracts or moving value across to compensate validators or miners.
In Ethereum’s case, the network boasts an active developer ecosystem and an extensive toolset. Due to these features and the fact that the platform was the first of its kind, Ethereum continues to draw developers, resulting in an active and thriving ecosystem.
To gauge this, the analyst, looking at gas fees generated, observes that out of the top 20 projects, more than half are running on Ethereum. Specifically, 11 protocols are on the network, while three are on Solana and the BNB Chain. Meanwhile, two are running on Tron, while Bitcoin, a transaction layer, features in the top 20.
A level deeper on this ranking shows that Ethereum has generated over $2.5 billion in fees, while Tron is second at over $1.5 billion.
Bitcoin comes third, minting more than $1.3 billion for its community of miners, even after Halving block rewards in late April. Interestingly, Tether (USDT), Uniswap, Lido Finance, and Flashbots generate more fees than Solana.
That Tron is second ahead of Bitcoin suggests a spike in on-chain activity. The smart contracts platform dominates in USDT transfer. However, in recent weeks, the launch of SunPump, a meme launchpad, has pushed network activity higher, translating to more fees for validators.
Will ETH Maintain Its Lead Even With Regulatory Advantage?
Only time will tell whether Ethereum will remain the most valuable smart contracts platform. Presently, the network’s value proposition extends beyond the financial gains given to validators.
Analysts observe that the platform offers utility through gas fees. At the same time, it has benefited from the social value, though the “cool factor,” they add, is dissipating.
Ethereum is also the only asset approved by the United States SEC, permitting issuers to launch spot ETFs. While there is no official statement from the regulator confirming its status, spot Ethereum ETF issuers currently manage over $6.2 billion, according to Soso Value.