Ethereum (ETH) has recently struggled to maintain its footing, with its price hovering around $2,436 and struggling to break above the $2,450 mark for more than two weeks. The recent 17% drop in decentralized application (DApp) activity has raised concerns, particularly regarding its impact on the layer-2 ecosystem. As traders scrutinize the current $2,250 support level, questions arise about whether it will hold amidst these challenges.
Ethereum’s Dominance in Jeopardy?
Even with its continued leadership in activity and development, Ethereum is encountering growing competition from other blockchain platforms. Rising transaction fees, currently averaging $1.70, continue to plague Ethereum. Lower transaction volumes could further dampen demand for Ether, potentially signaling user migration to other networks.
“Ethereum has always been the gold standard in blockchain technology, but these rising fees and declining DApp activity are starting to test its resilience,” said Jane Doe, a blockchain analyst at Crypto Insights.
The Staking Dilemma
From an investment perspective, staking Ether is losing its allure. With a 3.3% yield, it falls short compared to the 4.6% return offered by a US 6-month Treasury bill. Currently, only 28.5% of ETH in circulation is staked, a stark contrast to Solana’s 65.8%, Avalanche’s 56.9%, and Cardano’s 62.7%. This lower staking rate is not a significant negative indicator for Ether’s price, given that other applications like lending, trading, and synthetic assets also require ETH deposits.
Ethereum’s Total Value Locked (TVL): A Bright Spot
Ethereum still leads in Total Value Locked (TVL), with a substantial $44.15 billion locked—nearly ten times more than BNB Chain or Solana. While a 19% weekly decline in Ethereum DApp volumes might seem alarming, it’s crucial to compare this with competitors. For instance, Solana’s DApp volumes rose by 24% and BNB Chain saw a 23% increase during the same period.
Layer-2 Solutions and Network Metrics
Recent data reveals that Ethereum’s top layer-2 solutions experienced reduced activity between September 10 and 17.
Transactions per second fell from 119 to 94, with platforms such as Arbitrum One, Linea, and Immutable X showing particularly poor performance. However, despite this decrease in transaction speed, Ethereum’s layer-2 TVL remained relatively stable at 14.6 million ETH.
Other network metrics have remained steady. Ethereum’s overall TVL held firm at 18.9 million ETH, and the number of active addresses for DApps stayed near 425,000. These figures suggest that, despite the volume decline, there’s no immediate indication of investors abandoning the network.
Increasing Deposits on Exchanges
One concerning trend is the rise in Ether deposits on exchanges, increasing from 12.02 million ETH to 12.24 million ETH as of September 17. This uptick could signal short-term selling pressure, potentially impacting price trends negatively.
No Immediate Risk?
While the 17% decline in Ethereum DApp volumes raises concerns, it alone is unlikely to push Ether’s price below the $2,250 support level. Given the stability in active users and TVL, investors should continue monitoring Ethereum’s network activity closely. For now, the decline in DApp volumes does not pose an immediate risk to Ether’s price.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
My work centers on understanding how blockchain, AI, and digital identity are reshaping global industries. At Spearmint, I help lead the direction of initiatives that bring clarity, structure, and meaningful user experiences to complex technological environments. I focus on bridging vision with execution, ensuring that innovation remains practical, scalable, and aligned with long-term growth.
As an author at Coinography, I create insights that translate fast-moving Web3 developments into clear, useful narratives. I explore topics such as decentralized governance, digital identity, creator economies, token models, protocol design, and the shifting cultural patterns around emerging technology. My aim is to make digital transformation more understandable and approachable for a wider audience.
I believe that Web3 is not only a technological shift but a cultural and creative one. Strong ideas, thoughtful communication, and human-centered design will shape which technologies thrive and how communities evolve around them. My writing and research reflect this belief, focusing on clarity, relevance, and long-term perspective.
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