Bloomberg analyst Jamie Coutts has disclosed that Ethereum Layer 1 and Tron account for 88% of the total fees incurred in blockchain transactions, with Ethereum taking the lead at 57% and Tron at 31%.

The remaining 12% is allocated for competition among other chains, while Ethereum's Layer 2s are rapidly increasing their market share in the presence of approximately 200 smart contract and Proof of Stake (PoS) blockchains.

Coutts has also outlined the main challenges encountered by the majority of PoS blockchains.

These challenges encompass an excessive supply of blockspace, inflationary supply schedules, undisclosed supply indicators, and inadequate tokenomics.

Despite the bear market, Coutts asserted that there is a persistent "long term structural uptrend" in the demand for blockspace.