In one line: The merge to ETH2.0/Proof of Stake creates a negative inflation rate + staking rewards at 10%+, setting up what should be very strong economics for the long-term trajectory for ETH as a store of value.
In one more line: NFT’s continue to prove staying power and have the potential to be the biggest social-cultural revolution in decades.
Protocol Summary:
Numbers are Q1 2022 (year-over-year):
- Network Revenue increased 46% from $1.6 billion to $2.4 billion. This measures the value of the transaction fees, paid in ETH, by network users. $2.48 billion of this revenue (87%) was removed from the circulating supply of ETH via the burning mechanism implemented via EIP-1559, which went live in August 2021.
- The ETH Inflation Rate rate decreased 54% from 1.10% to 0.51% during Q1. This metric tracks the net change in the supply of ETH. New ETH is issued through block rewards, which are paid out to miners as a reward for confirming network transactions, and burned through the aforementioned EIP-1559.
- The Average of Daily Active Addresses rose 4% from 507,662 to 529,018. This tracks the average number of addresses that interacted with the network each day over the course of the quarter.
- ETH Staked rose 111% from 5.2 million to 10.9 million. This represents the number of ETH staked on the Beacon Chain ahead of Ethereum’s transition from utilizing a Proof-Of-Work (PoW) consensus mechanism to Proof-Of-Stake (PoS). Approximately 9.2% of the total ETH supply is staked in anticipation of “The Merge.”
- The Average Transaction Fee fell 80% from $14.93 to $2.98. This measures the average fee paid for Ethereum blockspace by users to have their transaction confirmed.
Ecosystem Summary
- DeFi TVL increased 82% from $49.1 billion to $89.5 billion. This measures the value of the assets deposited into Ethereum-based DeFi protocols, such as decentralized exchanges, money markets, and options vaults.
- Stablecoin Circulating Supply rose 188% from $42.3 billion to $122.1 billion. This measures the value of both centralized and decentralized stablecoins that are either natively issued or bridged onto Ethereum. The stablecoins included in the calculation are USDC, USDT, DAI, FEI, FRAX, MIM, UST, LUSD, HUSD, PAX, TUSD, sUSD, and BUSD.
- Spot DEX volumes grew 667% from $513.4 billion to $3.9 trillion and Perpetuals DEX volumes exploded 2704% from $7.4 billion to $209.1 billion. These track the trading volumes on decentralized spot exchanges that live on Ethereum mainnet, and perpetual futures exchanges that are live on Ethereum Layer-2s, respectively.
- NFT Marketplace Volumes erupted 19,290% from $606.3 million to $116.4 billion. This tracks the trading volume on the two largest generalized NFT marketplaces, OpenSea and LooksRare. There were 226,176 unique wallets to either buy or sell an NFT during the quarter.
- The Number Of Unique Wallets Holding an NFT rose 306% from 981,315 to 3.98 million. This measures the number of wallet addresses which have at one point in time held an ERC-721 token, the token standard used to issue NFTs.
- The Floor Price of CryptoPunks rose 513% from 17.42 ETH to 106.87 ETH. This tracks the lowest price at which a CryptoPunk was most recently sold. While it launched in Q2 2021, the floor price of Bored Ape Yacht Club (BAYC), the most expensive profile-picture NFT collection by this metric, ended the quarter at 108.93 ETH which was worth ~$351,000 based on prices at the time.
- The Layer-2 TVL increased 964% from $686.9 million to $7.3 billion. This measures the total value locked in Ethereum L2 scaling solutions, such as optimistic rollups, zero-knowledge rollups, and validiums. As of writing, more than $23 billion in assets, including $4.2 billion of ETH, has been bridged from Ethereum to these L2s and other L1 blockchains.
Ecosystem 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://nftplazas.com/yugalabs-otherside-launch-date/
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 Crypto or Web 3 projects. Do your own research (DYOR)!!
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