Key Takeaways
What’s driving Ethereum’s income surge?
Principally stablecoin transactions, led by Tether’s USDT and Circle’s USDC.
Will ETH’s worth profit from the traction?
Tom Lee believes so, however Coinbase analysts nonetheless assume BTC may dominate within the mid-term.
Ethereum [ETH] is within the information immediately after it scored a file excessive in utility income.
In keeping with Growthepie’s data, the Ethereum mainnet captured $48 million per day on 14 October from apps, surpassing the earlier worth of $41 million hit in 2022.
Quite the opposite, the L2s captured 14% of the income share, starkly contrasting the view that the sidechains are massively consuming into Ethereum’s market share.
Reacting to the replace, analyst Joseph Younger linked the income progress to Ethereum’s “optimistic flywheel” of scaling. He added,
“It’s a optimistic flywheel working: excessive throughput → low charges → extra utilization → extra worth. Ethereum isn’t simply scaling. It’s accelerating as an financial machine.”
Supply: Growthepie
On the time of writing, nevertheless, Ethereum’s income had slumped to $35 million per day, amid a broader market cool-off.
Ethereum income vs different chains
A deeper look into the important thing progress drivers revealed that half of the income got here from stablecoin swaps, translating to roughly $46 billion in quantity in October alone.
Supply: Blockworks
When zoomed out on the broader blockchain ecosystem, Hyperliquid [HYPE] seemed to be nonetheless punching above its weight on the app income entrance. Within the final 30 days, Hyperliquid netted 30% of the full community income, whereas Ethereum took in 21.5%, based on Blockworks information.
Binance [BNB] got here in third place at 16% whereas Solana [SOL] and Tron [TRX] have been tied at fourth with 11%.
Supply: Blockworks
On the protocol degree, Ethereum’s revenue has been dominated by Tether, Circle, and Sky (previously Maker).
Will ETH’s value profit?
Properly, the traction and dominance of stablecoins additional validates Fundstrat CIO Tom Lee’s guess on Ethereum’s value upside potential by way of treasury agency BitMine. The agency at the moment holds 3.4 million ETH to seize the anticipated progress in stablecoins and tokenization.
Nevertheless, Coinbase analysts have poured chilly water on bullish bets for ETH within the mid to long-term. Of their month-to-month outlook, the analysts noted that the post-October crash may give attention to BTC earlier than one other rotation happens.
“We thus anticipate a gradual improve in Bitcoin dominance over the subsequent 2-3 months, which can exert downward strain on ETH/BTC and alt/BTC pairs earlier than an eventual market rotation.”
