Ethereum Faces Decline, According to Expert's Prediction

Ethereum, the second-largest cryptocurrency, is experiencing its best quarter since its launch, with a 73% increase during Q3 of the year. This impressive rally in Ethereum's price, however, does not seem to translate into meaningful network revenue, according to AJC, a researcher at data analytics firm Messari.

AJC's analysis suggests that the Ethereum network is currently experiencing one of its worst months in terms of revenue since January 2021. This claim has sparked controversy within the cryptocurrency community, with some ETH supporters accusing Messari of being biased against the flagship altcoin.

In response to these accusations, AJC noted that some members of the Messari team actually disagree with his analysis. He argues that metrics such as active addresses and throughput are "meaningless statistics" for the Ethereum network. AJC further contends that continued L2 scaling does not mean much if there is no marginal user demand for another L2.

Despite these concerns, other trends on the Ethereum network are showing positive developments. For instance, the transaction count as throughput is improving, and active addresses on the network have started showing small positive trends, as another Messari analyst has noted.

It's worth noting that the stablecoin supply does not impact Ethereum unless it also increases velocity, according to AJC. The Ethereum network's revenue in August 2023 was $39.2 million, which is down 75% from August 2022 and down 30% from August 2024.

The specific company that AJC was affiliated with as a researcher at the time of reporting could not be determined from the available information. However, it's clear that AJC's analysis has stirred up debate within the cryptocurrency community, with some supporting his viewpoint and others questioning his conclusions.

As the Q3 of the year comes to a close, the cryptocurrency market will continue to watch Ethereum's performance with interest. Whether AJC's analysis proves to be prescient or not remains to be seen.