Ethereum (ETH) News: Dencun Upgrade Triggers 99% Revenue Decline
Ethereum's Revenue Crisis Post-Dencun Upgrade
Ethereum (ETH) news has been dominated by a staggering revenue decrease of 99% since the Dencun upgrade on March 13, as reported by Token Terminal. This crucial upgrade aimed to lower transaction fees, allowing Layer-2 (L2) solutions to thrive. Unfortunately, the move inadvertently intensified competition, leading to a significant drop in Ethereum's revenue.
Layer-2 Solutions Surge
With over 70 active L2 solutions and 21 Layer-3 (L3) projects now in the market, Ethereum has seen its network revenue tumble from $35.5 million on March 5 to $566,000 by late August.
Future Outlook for Ethereum's Ecosystem
Rob Viglione, CEO of Horizen Labs, suggests that Ethereum is evolving from a primary transaction platform to a vital settlement and security layer for Layer 2 networks. While this transition might invite short-term disruptions, it holds potential for strengthening Ethereum's overall position in the industry.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.