Ethereum Onchain Activity Surges, Outpacing Competitors

Ethereum continues to assert its dominance, recording substantial onchain growth and fee generation, reinforcing its position as the leading blockchain network despite criticisms of high transaction costs. On the other hand, the XRP Ledger is setting the stage for a transformative leap with the imminent deployment of its Ethereum Virtual Machine (EVM) sidechain. 

The XRPL EVM sidechain’s recent v4.0.0 upgrade introduces critical features, including minting and burning capabilities for XRP and enhanced cross-chain operability through the Axelar bridge. Meanwhile, Ethereum’s ecosystem benefits from its robust layer-2 solutions, such as Arbitrum and Optimism, as well as its ambitious roadmap aimed at achieving long-term scalability. 

Ethereum Struggles at $3,200 but Shows Promising Onchain Growth Compared to Rivals

Ethereum (ETH) has faced challenges in maintaining its price above the $3,200 mark between Sept. 13 and Sept. 19. Despite these short-term struggles, the blockchain network has exhibited remarkable improvements in its onchain metrics, positioning it as a leader in the cryptocurrency space. As traders ponder when Ethereum will reignite its bullish momentum, its dominance in fees, total value locked (TVL), and network activity continues to demonstrate its competitive edge.

When it comes to decentralized application (DApp) usage, Ethereum outpaces its competitors by a wide margin. Data from DappRadar shows Ethereum recorded an impressive $149.9 billion in onchain volume over the past 30 days. For perspective, the second-largest player, BNB Chain, managed just $26.6 billion—an 82% gap. Ethereum’s 37.7% growth in volume over the past month dwarfs BNB Chain’s 6% decline.

Ethereum has often faced criticism for its relatively high average transaction fee of $7.50. Critics argue this fee structure hinders retail adoption, but Ethereum’s expanding ecosystem of layer-2 solutions such as Arbitrum, Optimism, and Base mitigates these concerns. These networks offload transaction processing while relying on Ethereum’s base layer for security and finality, strengthening Ethereum’s position as a foundational blockchain.

These advancements encourage the growth of independent validators and staking deposits, further solidifying Ethereum’s network security and decentralization.

Ethereum’s closest competitor in recent months appears to be Solana, a blockchain network that has seen explosive growth. Solana’s onchain volume has grown by an eye-popping 83% over the past month, with a TVL of $8.3 billion—albeit still far behind Ethereum’s $59.4 billion. Solana’s decentralized exchanges (DEXs) have also outpaced Ethereum’s in terms of activity, marking a noteworthy shift in user engagement.

While Solana is making inroads, Ethereum’s ability to generate substantial fees demonstrates its staying power. Over the past 30 days, Ethereum generated $163.7 million in fees, compared to Solana’s $133.4 million and Tron’s $51 million, according to DefiLlama.

Ethereum’s staking rewards and inflation rates provide another key competitive advantage. Ethereum offers a 3.3% annualized staking reward rate, with an adjusted return of 2.6% when factoring in its low inflation rate of 0.7%. By comparison, Solana’s staking reward rate of 6.2% is overshadowed by its 5.2% inflation rate, leaving stakers with an adjusted return of just 1%.

This disparity positions Ethereum as a more attractive option for institutional investors, who are key players in maintaining Ethereum’s leadership in TVL.

Scaling Challenges and the Path to Ethereum 3.0

Ethereum’s biggest hurdle remains achieving scalability without disrupting its existing layer-2 ecosystem. Current solutions, such as blob space and state bridging, offer relatively low-cost scalability, but Ethereum’s long-term roadmap—dubbed Ethereum 3.0—promises transformative changes.

The Ethereum 3.0 upgrade aims to reintroduce sharding and leverage a zero-knowledge Ethereum Virtual Machine (zkEVM) at the base layer. These innovations could enable multiple execution shards and dramatically increase transactions per second. While promising, these developments are still years away from full implementation.

Ethereum’s ability to sustain its dominance hinges on delivering its ambitious roadmap and addressing scalability challenges. With its superior staking metrics, robust fee generation, and increasing onchain activity, Ethereum has the potential to outperform its rivals and the broader altcoin market capitalization.

However, the competition is intensifying, with networks like Solana and BNB Chain pushing the boundaries of user engagement and transaction speed. Ethereum’s leadership will depend not only on maintaining its technological edge but also on ensuring that its ecosystem remains vibrant and attractive to both retail and institutional players.

For now, Ethereum’s metrics paint a picture of resilience and growth, setting the stage for its next bull run as traders and investors watch closely for its next move.

XRPL EVM Sidechain Hits Milestone with v4.0.0 Chain Upgrade

The XRP Ledger (XRPL) ecosystem has taken a significant step forward with the release of the v4.0.0 Chain Upgrade for its Ethereum Virtual Machine (EVM) sidechain. This major update introduces critical features and enhancements designed to expand the XRPL network's programmability and functionality, setting the stage for its next evolutionary phase.

The v4.0.0 Chain Upgrade brings transformative changes to the XRPL EVM network. One of the most notable features is the introduction of minting and burning capabilities for the native XRP token, facilitated by the Axelar bridge. These capabilities, enabled through x/erc20 precompiles, offer developers and users enhanced flexibility in managing XRP-based assets.

In addition to these token-management advancements, the upgrade enhances the sidechain's underlying framework with updated dependencies. The Cosmos SDK, a foundational component of the XRPL EVM network, has been upgraded to v0.50.9, ensuring improved performance and stability. Similarly, the integration of Evmos v20 brings the latest innovations from the Evmos ecosystem, boosting compatibility and functionality across the network.

The XRPL EVM sidechain is the result of a collaborative effort between the XRP Ledger and Peersyst, a blockchain development firm. The sidechain is currently nearing live deployment on the development network (devnet), with its full launch expected in the coming months.

This sidechain is a pivotal development for the XRP ecosystem, as it brings Ethereum Virtual Machine (EVM) compatibility to XRPL. By enabling developers to use familiar tools and programming languages, such as Solidity, the XRPL EVM sidechain aims to attract a broader range of blockchain developers and projects.

A standout feature of the XRPL EVM sidechain is its integration with the Axelar bridge. This bridge allows seamless transactions between the XRPL EVM Sidechain, the XRP Ledger, and more than 55 additional blockchains. By enabling interoperability on this scale, the XRPL EVM network is poised to become a hub for decentralized applications (dApps) that require both XRP Ledger’s high-speed, low-cost capabilities and EVM-compatible smart contracts.

Wrapped XRP (eXRP) will serve as the native asset and gas token for these cross-chain transactions, further integrating the XRPL ecosystem with the broader blockchain landscape.

The momentum generated by the XRPL EVM sidechain is expected to accelerate as the XRP Ledger ecosystem evolves. Plans are underway to enhance XRPL’s native smart contract capabilities, which are currently in the research phase. The XRPL EVM sidechain serves as a critical step in this journey, offering a testing ground for developers and showcasing the potential of combining EVM programmability with XRPL’s robust infrastructure.

These advancements are expected to culminate in a transformative shift for XRPL by early 2025, significantly broadening its appeal to developers, enterprises, and institutional players.

What’s Next for the XRPL EVM Sidechain?

The v4.0.0 upgrade is a foundational milestone, but it’s just the beginning. The focus now shifts to the live deployment of the XRPL EVM sidechain on the devnet, followed by its anticipated launch on the mainnet. This progression will unlock new possibilities for developers, allowing them to build cross-chain dApps that leverage the unique strengths of both the XRP Ledger and Ethereum’s EVM ecosystem.

As the XRPL EVM sidechain moves closer to full deployment, the XRP community can expect a surge in activity and innovation. With its interoperability, enhanced token management features, and commitment to scalability, the XRPL EVM sidechain is set to redefine what’s possible within the XRP Ledger ecosystem.

The release of the v4.0.0 Chain Upgrade for the XRPL EVM sidechain marks a significant milestone in the XRP Ledger’s evolution. By integrating EVM compatibility, enhanced token management, and cross-chain capabilities, this upgrade paves the way for a more interoperable and developer-friendly blockchain environment.

As the XRP Ledger ecosystem continues to evolve, the XRPL EVM sidechain stands out as a cornerstone of its future programmability, offering the tools and infrastructure needed to compete in the rapidly expanding world of decentralized applications.