Bitcoin (BTC) Surges 7.7% in September as Ethereum (ETH) Struggles with Market Share and Declining Fee Generation

VanEck remains optimistic about Bitcoin's outlook heading into the fourth quarter, citing strong macroeconomic support and institutional inflows while expressing concerns over Ethereum's ongoing struggles with market share and declining fee generation.

After a period of relative calm in August, September saw a revival in the crypto market, largely driven by layer-1 blockchains. While Bitcoin (BTC) outperformed major altcoins, institutional interest in BTC and the upcoming halving in early 2024 seemed to drive the top coin’s price narrative.

Despite the market recovery, Ethereum (ETH) continued to struggle, losing market share and seeing a sharp decline in fee generation. The performance disparity could potentially impact ETH's market position.

Layer-1 Blockchains ShowcaseImpressive Growth

Layer-1 blockchains dominated the top performers list in September, with Sui leading the pack. Surging 118%, the network's market capitalization reached $5 billion. Memecoin activity and the launch of the native stablecoin, SUIS, drove a significant 140% growth in daily active addresses (DAAs) and 48% growth in revenue.

Aptos also performed strongly, climbing 23% despite a token unlock worth $90 million. The growth was largely attributed to the Raptr software upgrade, which bolstered transaction speeds and boosted daily active addresses by 30%.

Solana rounded out the top three performers after surging 14% over the period. This was fueled by the much-anticipated release of the “Firedancer” upgrade, which promises to enhance transaction throughput and network reliability. Firedancer, currently in testnet, achieved 89,000 transactions per second, a notable improvement for the Solana network.

Meanwhile, Polygon underperformed the wider market, falling by 4% amid a sharp drop in daily active users and a 50% reduction in fee generation. Despite these challenges, the network continued with its Polygon 2.0 roadmap, successfully migrating the MATIC token to POL with the goal of enhancing interoperability and scalability.

Layer-1 tokens as a whole rose 11%, with crypto equities gaining 11% and memecoins posting a 31% gain in September. Notably, BTC institutional inflows and upcoming halving drove the top coin's price narrative.

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