- Gaming activity on the Ethereum network declined considerably.
- Gas fees increased by a significant margin only to fall back again.
The gaming sector in the cryptocurrency space has been driving users to multiple networks over the last few months. However, it appeared that Ethereum was not enjoying that privilege.
According to recent data provided by Delphi Digital, Ethereum’s average daily active players in the gaming sector declined drastically.
Read Ethereum’s Price Prediction 2023-2024
Wax, Hive, and the BNBchain were observed to be the dominant networks in the gaming sector. The number of active gamers on the Ethereum network was negligent compared to the entire space.
Evidently, networks such as BNB and Polygon can use their dominance in the gaming space to their advantage.
Source: Delphi Digital
Well, it would be quite fair to wonder what is causing gamers to stay away from Ethereum. One of the reasons for the same could be the high gas fees which have forced many users and gamers to opt for alternative chains.
However, according to Dune Analytics’ data, it was observed that the overall gas fees on Ethereum were, in fact, less when compared to the previous year’s February month.
Source: Dune Analytics
It’s important to note that the gas fees could be further impacted after the Shanghai Hardfork.
The Shanghai Hardfork will go live on 28 February at epoch 56832. It will enable holders to withdraw their staked ETH from the beacon chain.
A lot at stake?
Despite the enabling of withdrawals coming to the forefront, the interest in staking ETH declined over the past few weeks.
How much are 1,10,100 Ethereum worth today?
Source: Dune Analytics
Another concerning factor for the Ethereum network was the disinterest of whales.
Based on glassnodes data, it was found that addresses holding more than 1,000 ETH had reduced in number. At press time, it had reached a 3-month low of 6,497.
Overall, Ethereum’s network remained resilient. At press time, ETH was trading at $1,671 with a 0.61% decline over the last day.