Compared to Bitcoin (BTC), Ethereum (ETH) has delivered a relatively flat price performance over the past month. On-chain data reveals Ethereum (ETH) has been losing traction to alternative Layer-1 (L1) networks like TRON (TRX) and BNB Chain.
While Ethereum holders have accelerated ETH staking to unprecedented levels, investors have been attentive toward alternative networks for day trading. Blockchain analytics platform has published a report illustrating how TRON and BNB Chain overtook Ethereum in June 2023.
TRON and BNB Chain Overtake Ethereum Trading Activity
TRON and BNB Chain sit ahead of Ethereum regarding trading activity over the past month. The Nansen chart below illustrates that both networks have attracted two times more trading activity than Ethereum.
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The chart below shows that TRON (TRX) Monthly Active Addresses grew 42% to reach 17.1 million in June. And despite the negative sentiment surrounding the US SEC’s lawsuit, Binance’s BNB Chain (BNB) monthly traction only fell by 4% to hit 11.9 million Active Addresses.
This was enough for both Layer-1 platforms to overtake Ethereum despite its 23% growth from the 4.7 million active addresses it recorded in May 2023.
Monthly Active Addresses tracks changes in network traction by aggregating the number of unique wallet addresses carrying out transactions. When it increases, the network’s native token will likely attract investor demand, which puts upward pressure on the price.
Evidently, TRON’s native token, TRX, is now up 11% from its recent low on June 19. Likewise, BNB has gained 4% since June 12, despite its ongoing regulatory squabbles.
The chart above illustrates that Ethereum now sits third on the list of investors’ most desired cryptocurrency network for transactions.
Notably, Ethereum staking activity rose to new all-time highs in June 2023. This can be attributed as one of the critical factors behind the trading deceleration.
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