The head of digital asset research at $101.9 billion U.S. hedge fund VanEck, Matthew Siegel, has discovered and revealed what could be key information for those bullish on Ethereum (ETH).
According to Siegel, Ethereum has regained a significant market share of fees among the fee-based layer-1 blockchains, rebounding from a low 9% share in late August to the current 40%.
Counter to Common Sentiment, #Ethereum has Regained Substantial Market Share of Fees Among Fee-Earning L1 Blockchains, Rebounding from a Low of 9% Share in Late August to Reach 40% Today. pic.twitter.com/IF9ZIdq3nP
— matthew sigel, recovering CFA (@matthew_sigel) September 23, 2024
For context, the expert continues, the 20% of layer-1 fees that Ethereum generated in August was the lowest since late 2019. The latter was a “pretty good” time to buy ETH, according to Siegel. Interestingly, the analyst presented his micro-research as a departure from the general sentiment toward the major altcoin at the moment.
Is “blood in the streets” mode on for Ethereum?
Indeed, when exhausted by Ethereum’s never-ending decline against not only Bitcoin, but also its main competitor right now, enthusiasts of the largest cryptocurrency have already gotten Vitalik Buterin to start making bullish posts. It is not just about the price of ETH but also about the market share among blockchains that the same Solana managed to take for itself this year.
Currently, even individual applications like pump.fun on Solana earn more in a week than the entire Ethereum network.
Importantly, Siegel also noted how similar conditions in 2019 marked the bottom of the ETH price. Since the beginning of 2024, unlike Bitcoin and Solana, which have grown their native token prices by more than 50% and 40%, respectively, the main altcoin has only grown by 16.86%, and that was earned in the first three months of the year.
Who knows, maybe this time history will repeat itself and Ethereum will finally see its renaissance?
