Only 7% of users who initially engage with Ethereum continue to use the platform after a year, according to recent data from Token Terminal. This suggests that the majority of users, approximately 93%, stop using Ethereum for token transfers and smart contract deployment within a year. The reasons behind this lack of user retention are not immediately clear, despite Ethereum’s popularity and leading position in the market. Ethereum, which launched in 2015, has made continuous improvements to enhance its performance and scalability. It is the first platform to enable the launch of decentralized applications (dapps) through smart contracts in a secure and globally distributed environment. Ethereum’s native currency, Ether (ETH), is the second most valuable coin after Bitcoin, and the platform is widely used for decentralized finance (DeFi) and non-fungible token (NFT) activities. However, Ethereum faces challenges in terms of scalability, security, and complex user interfaces, which may discourage user interaction. The blockchain can only process 15 transactions per second at its peak, leading to high transaction fees due to the high demand for block space. This demand for block space also results in a network utilization rate above 50%. The possibility of high gas fees and difficulties with user interfaces may contribute to users giving up on Ethereum or seeking alternatives. Non-custodial wallets like MetaMask are commonly used by users to directly engage with the Ethereum network, but the need to download and install third-party applications can deter some users. Additionally, hacks of protocols deployed on Ethereum and increasing competition from traditional applications may also play a role in user attrition.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 0 |
| People | None |
| Companies | Uniswap, MetaMask, Ethereum, TRON, Token Terminal, Solana |
| Currencies | Bitcoin, Ethereum |
| Securities | None |
