AJC, a researcher at data analytics firm Messari, argues that the Ethereum network is actually dying despite the recent price rally.
The researcher’s conclusion is based on the fact that Ethereum revenue is seemingly collapsing.
In August, the network generated a total of $39.2 million worth of revenue, which is down 75% from August 2023 and down 30% from August 2024. In fact, this is the lowest revenue that the network has recorded since January 2021.
Misleading metrics?
After some ETH supporters accused Messari of being biased against the flagship altcoin, AJC noted that some members of the team actually disagree with him.
There are multiple people from Messari disagreeing with me in the replies, so not sure what your point is.
Another Messari analyst has noted that active addresses have started showing small positive trends, and other trends, such as transaction count as throughput, are also showing positive developments.
However, AJC argues that such as metrics as active addresses and throughput are actually “meaningless statistics.”
Furthermore, he has noted that stablecoin supply does not impact Ethereum unless it also increases velocity. Meanwhile, continued L2 scaling doesn’t mean all that much “if there’s no marginal user demand for another L2”, AJC argues.
Ethereum’s strongest Q3 to date
As reported by U.Today, the second-largest cryptocurrency is now on track to score its best-performing Q3 since its launch.
ETH is currently up by a whopping 73% during the current quarter.
That said, the fact that this impressive rally does not translate into meaningful network revenue certainly seems to be concerning.
