In one line: What would the stock chart look like if this were a public company’s Q4 earnings?
In one more line: Expecting Layer 2 scaling solutions to have explosive growth and mature over the course of 2021 as we move toward ETH 2.0.
Protocol Summary
Numbers compare performance from Q4 2020 and Q4 2021
- Network Revenue rose 1,777% from $231.41 million to $4.34 billion. Network revenue refers to fees paid in ETH by users to transact on the network. Of this, $3.78 billion (87%) worth of ETH was “burned” and removed from the circulating supply through EIP-1559.
- Average Daily Active Addresses grew 35% from 425,636 to 572,700. This measures the average number of individual wallet addresses that interacted with the network each day over the course of the quarter.
- ETH Inflation Rate fell 64% from 1.13% to 0.46%. This tracks the increase in the supply of ETH, less burnt fees, as a result of the block reward issued to miners as compensation for confirming transactions.
- ETH Staked increased 471% from 1,545,486 to 8,818,933. This measures the amount of ETH Staked on the “Beacon Chain,” which eventually be merged with the current Ethereum network when it switches from Proof-Of-Work (PoW) to Proof-Of-Stake (PoS). About 7.40% of the total ETH supply is staked.
- Average Transaction Fee rose 557% from $4.09 to $26.89. This represents the average price paid per transaction by a user on the network.
Ecosystem Summary
Growth from Q4 2020 to Q4 2021
- DeFi TVL grew 770% from $17.73 billion to $154.20 billion. This measures the value of assets deposited into Ethereum based DeFi applications.
- DEX Volumes rose 495% from $48.97 billion to $291.53 billion. This tracks trading volumes on Ethereum’s largest decentralized exchanges such as Uniswap, SushiSwap, and Curve.
- BTC on Ethereum grew 133% from 138,190 to 321,730. This represents Bitcoin that has been tokenized in various forms, such as wBTC, renBTC, and tBTC, with roughly 1.69% of the BTC supply now living on Ethereum.
- OpenSea Sales increased 50,078% from $71.57 million in $35.91 billion. This tracks the sales volume of the network’s largest NFT marketplace.
- Layer 2 TVL increased 11,002% from $50.01 million to $5.55 billion. This measures the amount of value bridged from Etheruem into L2 scaling solutions such as Optimistic and ZK Rollups.
Results Table
About Ethereum
Ethereum is an open-source, decentralized blockchain network. Ethereum is a technology that’s home to digital money, global payments, and applications. The community has built a booming digital economy, bold new ways for creators to earn online, and so much more. It’s open to everyone, wherever you are in the world – all you need is the internet (Taken from the Ethereum.org website.)
About This Release
This release is not a release of Ethereum or the Ethereum foundation.
Source: Bankless (highly recommend following / subscribing to their regular updates – one of the best sources of data for learning and keeping on top of Web 3)
Photo Cred: https://www.pinterest.co.uk/pin/577938564663588137/
DISCLAIMER: This is not investment advice nor is it an endorsement or solicitation of any kind. I do NOT recommend you invest in Ethereum (ETH). This is for entertainment and informational purposes ONLY. Investing in cryptoassets is extremely risky, volatile, and may result in significant or permanent loss of capital. Those risks should be evaluated independently or with a professional before taking any action. You can assume I invest in everything I write about and am not recommending you do the same. Please do not use this information as a foundation for making investments in Web 3 projects. Do your own research (DYOR)!!
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