Ethereum remains supreme
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Ethereum still rules.
Why it matters: There's an ever-present narrative that a smart-contract-enabled blockchain is going to take Ethereum's spot as the No. 2 blockchain, but — despite buzzy moments on other layer-1s — the data doesn't support it.
- Not only is Ethereum still the place where the most value is secured, it's typically larger by an order of magnitude, according to a new report on the first half of the year in crypto markets from CoinMarketCap.
Context: Smart contract blockchains are those capable of running sophisticated programs in a decentralized way.
By the numbers: Ethereum's proportion of the total market cap of all smart-contract blockchains is the strongest it has been all year, at 62%.
- Ethereum sits at nearly $400 billion, with its nearest competitor, BNB chain, at $86 billion.
- Similarly, Ethereum dominates in the total amount committed to its decentralized finance applications, at 84% of all such deposits.
Yes, but: Solana — which is generally viewed as Ethereum's strongest competitor — still has more people making transactions on a day-to-day basis.
- The main thing people are doing on Solana these days is meme coins, and new reports show that its meme coin maker, Pump.fun, is earning more money than all of Ethereum.
- Of course, that's not entirely bad news. The Ethereum world has been working hard to lower the cost of using it, and it's going well.
What we're watching: NFTs. Ethereum has fallen behind in the creation and trade of digital art.
- So far this year, Bitcoin is winning on volume.
- Solana is winning on transactions and user activity.
What's next: Ether ETFs actually trading.
