Ethereum Remains Dominant DEX Chain Despite Fall from Dominance: CoinGecko

ethereum's position in DEX trading is changing, according to CoinGecko's Q3 crypto Industry Report published on October 14.

The network remains the dominant chain for decentralized exchange, but its market share consistently fell below 40% during the quarter.

Trading volume on ethereum trended downward between July and September, with cumulative volume 19.6% lower than the previous quarter, crypto-report” target=”_blank” rel=”noopener” data-wpel-link=”external”>noted.

Meme Coins Boost DEX Competition

ethereum faces increased competition from other chains in the DEX space, particularly Solana and Base. However, its popularity is mainly due to degens minting meme coins.

Solana gained significant traction in DEX trading and ended September with 22% market share and $21.5 billion in volume.

Base, Coinbase ethereum L2, increased its DEX market share by 31.4% in the third quarter, surpassing Arbitrum with 13% dominance and $12.3 billion in volume in September.

Tron was a newcomer to the top ten after displacing Blast, which saw its volumes drop following its token generation event.

However, this was also boosted by meme coins following the launch of said SunPump generator on Tron. The network managed to capture 2% of the market share with a volume of $1.7 billion in September, according to CoinGecko.

eth's market dominance also took a beating in the third quarter. Its share of the total crypto market capitalization fell by 3.6%, ending the quarter at 13.4%. This was the biggest drop among the top 7 cryptocurrencies, despite the launch of ethereum ETFs in July.

However, the ethereum ecosystem saw substantial growth in Layer 2 scaling solutions, with total transactions across the top 10 L2s increasing by 17.2% in the third quarter.

Daily transactions on L2 nearly reached 10 million at the end of September, far surpassing the 1 million daily transactions on the ethereum mainnet, the report notes. This growth indicates a shift in user activity from the ethereum main chain to more scalable L2 solutions.

eth FUD continues

Developers of the ethereum ecosystem have taken to crypto social media this week to dispute the waves of FUD that have plagued the network recently.

On October 14, Cyber ​​Capital founder Justin Bon x.com/Justin_Bons/status/1845864589801517116″ target=”_blank” rel=”noopener” data-wpel-link=”external”>aggregate to the FUD stating that Uniswap going off-chain “is just the final nail in the coffin, all applications are moving to competitive L1 and L2.”

“Now eth is falling behind, irrelevant and bankrupt; ethereum is cooked.”

However, BlackRock CEO Larry Fink disagreed, highlighting the growth potential of the ethereum network during the company's third-quarter earnings call this month.

<blockquote class="twitter-tweet”>

And are you still bearish on eth? https://t.co/nb1E8tQMsO

– sassal.eth/acc (@sassal0x) twitter.com/sassal0x/status/1845973331230839128?ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>October 14, 2024

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