AJC, a researcher at Data Analytics Firm Messari, claims that despite recent price rallies, the Ethereum Network is indeed dying.
The researchers’ conclusions are based on the fact that Ethereum’s revenue appears to be falling apart.
In August, the network generated revenue totaling $39.2 million worth. This is a 75% decrease from August 2023 and a 30% decrease from August 2024. In fact, this is the lowest revenue the network has recorded since January 2021.
A misleading indicator?
After some ETH supporters accused Messari of biasing its flagship altcoin, the AJC noted that some members of the team actually disagree with him.
I don’t know what your point is as multiple people in Messari are against me in replying.
Another Messalianalist notes that active addresses are beginning to show small positive trends, and other trends such as transaction counting as throughput also show positive development.
However, AJC claims that metrics such as active addresses and throughput are actually “meaningless statistics.”
Furthermore, he notes that Stablecoin’s supply will not affect Ethereum unless the speed increases either. Meanwhile, AJC argues that the continuation of L2 scaling is not necessarily “in the absence of marginal user demand for another L2.”
Ethereum’s most powerful Q3 ever
As Reported by U.Todaythe second largest cryptocurrency is on track to win the best performance Q3 since its launch.
ETH is currently up a whopping 73% this quarter.
That said, the fact that this impressive gathering will not be converted into meaningful network revenue certainly seems to be of concern.