According to analysts at VanEck, Ethereum’s share of decentralized exchange trading volume has dropped from 42% in 2022 to 29% in 2024.
Asset manager VanEck outlined multiple factors contributing to Ether’s (ETH) poor price performance in its Crypto Monthly Recap for August 2024.
The report divided the issues plaguing Ethereum into three main categories: a general decline in network revenue, “deliberate policy choices,” and value extraction from layer-2 solutions and service providers.
According to VanEck, a consumer shift to higher-throughput layer-1 blockchains like Solana (SOL) is partially to blame for the general revenue decline on Ethereum. Analysts for VanEck asserted that the “best use case for public blockchains at this early stage is speculation.”
