Ethereum’s Pectra Upgrade Brings Stability as SCP Activity Drops
The post Ethereum’s Pectra Upgrade Brings Stability as SCP Activity Drops appeared on BitcoinEthereumNews.com. There has been a sharp decline in daily active addresses across Smart Contract Platforms (SCPs) in recent months, raising concerns among investors and developers. Meanwhile, Ethereum’s Pectra Upgrade could be the turning point, with crypto analyst Jamie Coutts calling the current state a cleansing of the ecosystem. SCPs See Sharp Decline in Active Users Jamie Coutts, who built Bloomberg Intelligence’s crypto research product, says this is the worst decline ever recorded in the history of SCPs. He also notes that it is far worse than the 2022-2023 bear market, with daily active addresses dropping 40.5% in just five months. “This is the largest usage collapse in SCP history,” wrote Coutts. Coutts’ analysis provides a deeper look at the broader crypto ecosystem, which is simultaneously witnessing an uptick in global liquidity and an all-time high in stablecoin market cap. Smart contract platforms collapse. Source: Jamie Coutts on X While the sector seems to be experiencing a shakeout, Coutts says this decline does not indicate the death of smart contract platforms. Rather, it is a necessary cleansing of the ecosystem. The analyst attributes the drop in daily active addresses to several key factors, including the rise of artificial activity. “Much of the past cycle’s growth was artificial: Usage inflated by bots and Sybil farms, Incentive programs created temporary traction without stickiness. The unwind reflects a cleansing of fake activity, not the death of the sector,” Coutts explains. The rise of bots and Sybil attacks, where bad actors create multiple fake identities to manipulate a platform’s usage metrics, has artificially inflated the activity numbers across various smart contract platforms. Now, as these fake users are being weeded out, the real growth potential of SCPs is becoming clearer. Moreover, this trend suggests that SCPs with weak application ecosystems or limited use cases will face…
The post Ethereum’s Pectra Upgrade Brings Stability as SCP Activity Drops appeared on BitcoinEthereumNews.com.
There has been a sharp decline in daily active addresses across Smart Contract Platforms (SCPs) in recent months, raising concerns among investors and developers. Meanwhile, Ethereum’s Pectra Upgrade could be the turning point, with crypto analyst Jamie Coutts calling the current state a cleansing of the ecosystem. SCPs See Sharp Decline in Active Users Jamie Coutts, who built Bloomberg Intelligence’s crypto research product, says this is the worst decline ever recorded in the history of SCPs. He also notes that it is far worse than the 2022-2023 bear market, with daily active addresses dropping 40.5% in just five months. “This is the largest usage collapse in SCP history,” wrote Coutts. Coutts’ analysis provides a deeper look at the broader crypto ecosystem, which is simultaneously witnessing an uptick in global liquidity and an all-time high in stablecoin market cap. Smart contract platforms collapse. Source: Jamie Coutts on X While the sector seems to be experiencing a shakeout, Coutts says this decline does not indicate the death of smart contract platforms. Rather, it is a necessary cleansing of the ecosystem. The analyst attributes the drop in daily active addresses to several key factors, including the rise of artificial activity. “Much of the past cycle’s growth was artificial: Usage inflated by bots and Sybil farms, Incentive programs created temporary traction without stickiness. The unwind reflects a cleansing of fake activity, not the death of the sector,” Coutts explains. The rise of bots and Sybil attacks, where bad actors create multiple fake identities to manipulate a platform’s usage metrics, has artificially inflated the activity numbers across various smart contract platforms. Now, as these fake users are being weeded out, the real growth potential of SCPs is becoming clearer. Moreover, this trend suggests that SCPs with weak application ecosystems or limited use cases will face…
What's Your Reaction?
