Crypto analyst Jamie Coutts recently revealed that Ethereum and Tron Network have established a strong hold on the Proof of Stake (PoS) blockchain sector. These two platforms accounted for 88% of transaction fees over the past year among nearly 200 smart contract and PoS blockchains, according to Coutts' findings on Monday.
Coutts from Bloomberg identified several challenges that other PoS blockchains face in their bid to compete with Ethereum and Tron. These include an oversupply of blockspace, undisclosed supply indicators, inflationary supply schedules, and subpar tokenomics. Despite these issues, Coutts predicts a structural uptrend in blockspace demand, even amidst the ongoing bear market.
Data from BeInCrypto and Santiment showed that Ethereum's average transaction fee fell to its lowest point since December 2022, standing at $1.15 per transaction in September 2023. This reduction in transaction fees coincides with a rapid increase in the market share of Ethereum Layer 2 solutions ($ETH L2s).
Meanwhile, reports from July highlighted that trading activity on the TRON network nearly doubled that of Ethereum's in June. This surge in TRON's trading activity further emphasizes the dominant position of both Ethereum and TRON within the PoS blockchain sector.
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