The article discusses the recent surge in daily active addresses on Uniswap, largely driven by the rise of meme tokens, particularly PEPE, which has seen a nearly 100,000% rally over the past month. This has led to increased on-chain speculation and competition among Ethereum users for transaction prioritization, resulting in high transaction fees. Despite the growth of layer-2 solutions, Ethereum remains the preferred platform due to its network effects, deep liquidity, and high volumes. However, the high fees are a barrier to wider adoption beyond on-chain speculation.
- Monitor the rise of meme tokens: The surge in popularity of meme tokens like PEPE can drive significant on-chain activity and impact transaction fees.
- Understand the implications of high transaction fees: High Ethereum fees can be a barrier to wider adoption of crypto, affecting all users, including those on layer-2 solutions.
- Consider the impact of network effects: Despite high fees and the availability of layer-2 solutions, Ethereum’s network effects make it a preferred platform for many users.