Cryptocurrency analyst Jamie Coutts recently revealed that Ethereum and Tron Network have established a strong hold on the proof-of-stake (PoS) blockchain space. The two platforms accounted for 88% of transaction fees on nearly 200 smart contracts and PoS blockchains over the past year, according to Coutts findings on Monday.
Coutts pointed out some of the challenges other PoS blockchains face when competing with Ethereum and Tron. These include an oversupply of block space, undisclosed supply metrics, inflationary supply schedules, and subpar token economics. Despite these issues, Gutz predicts that block space demand will continue to trend structurally upward even in an ongoing bear market.
Data from BeInCrypto and Santiment show that average transaction fees on Ethereum dropped to their lowest point since December 2022, standing at $1.15 per transaction in September 2023. The decline in transaction fees coincides with the rapid growth in market share of Ethereum Layer 2 solutions ($ETH L2).
Meanwhile, reports from July highlighted that transaction activity on the TRON network was nearly double that of Ethereum in June. The surge in TRON trading activity further highlights the dominance of Ethereum and TRON in the PoS blockchain space.
