Ethereum’s Rough Start to 2023
Ethereum [ETH], despite planning for upgrades this year, has had a rocky start to 2023. Despite the altcoin’s strong rally in January, the network has experienced various irregularities and sluggishness. Ethereum’s main selling point has been its ability to host multiple decentralized applications (dApps). Currently, the Total Value Locked (TVL) on the Ethereum network stands at $28.99 billion.
Ethereum’s TVL Faces Competition
However, other players in the DeFi ecosystem seem to be outperforming Ethereum’s TVL. One notable competitor is TRON [TRX], led by Justin Sun, which has seen a 26.82% increase in its TVL in the past 30 days. Optimism [OP], another Ethereum-based project focused on scaling the Ethereum network, has also outperformed Ethereum with a 56.56% increase in its TVL, according to DeFi Llama.
Ethereum Scammers and High Gas Prices
Unfortunately, Ethereum’s users have become the victims of scammers on the network. Peckshield Alert recently tweeted that the two top gas spenders on Ethereum were actually scammers using a “transferFrom” feature to conduct zero transfers via a smart contract. This has led to an increase in Ethereum gas prices, making transactions more expensive for users and affecting the network’s revenue.
Shanghai Upgrade Approaches, but User Base Lags Behind
These events may be concerning for Ethereum as the Shanghai upgrade, scheduled for March, approaches. Despite some positive comments from stakers about the withdrawal resumption, Ethereum lags behind Binance’s BNB Chain in terms of Daily Active Users (DAU), with 344,300 users compared to BNB’s 815,500.
Network Growth Stalls, ETH Struggles for Traction
The ETH network growth has reached its lowest point in months at 26,600, according to Santiment. The active addresses trend has also been trending downward, flatlining at 5.64 million since February began. Despite a 4.76% increase in ETH’s value in the past seven days, the Ethereum development team may need to focus on reviving the network and improving security to avoid potential consequences for the blockchain.