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In one line: The merge is scheduled for September 15th / 16th…you can see people starting to catch on given the recent price action of #ETH; either way, it appears to be tremendously undervalued if you zoom out and if “the merge” is successful, this will be a seminal moment in ETH’s history.
Protocol Summary:
- Network Revenue fell 33.4% — from $1.91B to $1.28B.
This measures the value of the transaction fees paid to use the network. Of this, $1.09B of ETH (85.4% of it) was burned, removing it from circulating supply. This decreased demand for blockspace is likely attributable to the market weakness during the quarter, which dampened speculative activity. - ETH Inflation Rate decreased 37% from 1.12% to 0.71%. This measures the growth in supply of ETH over the course of the quarter. The decline is likely a result of the fee burning mechanism implemented in Q3 2021 via EIP-1559.
- Average Daily Active Addresses fell 20.6% — from 593,404 to 471,447. This tracks the average number of wallet addresses to transact on Ethereum each day over the duration of the quarter. As with network revenue, this decline is likely due to the decreased speculative appetite among users as a result of the quarters bearish backdrop.
- ETH Staked increased 116% from 6.01M to 12.98M. This measures the amount of ETH staked on the Beacon Chain ahead of the network’s upcoming transition from Proof Of Work (PoW) to Proof Of Stake (PoS). Roughly 10.86% of the total supply of ETH was staked by the end of Q2.
Ecosystem Summary:
- DeFi Total Value Locked (TVL) fell 42.4% — from $59.42B to $34.21B. This tracks the value of the assets deposited into DeFi protocols deployed on Ethereum. This decline is likely driven by the fall in crypto asset prices during the quarter, as well as liquidity outflows as a result of compressed yields, and diminished risk appetite among DeFi users.
- Stablecoin Circulating Supply increased 43.0% — from $76.58B to $109.50B. This measures the amount of USD-pegged stablecoins issued and circulating on Ethereum. Growth can be attributed to the increased demand to transact or lever up with stable-assets, as well as growth of newly issued stablecoins such as FRAX.
- Spot DEX volume fell 9.0% — from $350.54B to $319.13B. This measures the total trading volume on decentralized spot exchanges live on Ethereum over the course of the quarter. The decline in spot volume is likely due to market conditions, as trading volumes have been highly correlated to bullish price action.
- NFT Marketplace Volumes erupted 2439.2% from $509.36M to $12.93B. This tracks trading activity on marketplaces OpenSea, Foundation, LooksRare, Rarible, and Superrare. This growth is likely due to the secular growth of the NFT ecosystem between Q2 2021 and Q2 2022 — in particular the rise in popularity of PFP collections.
- The Average number of Daily NFT Traders grew 1114.5% from 2412 to 29,289. This measures the average number of users to trade NFT’s each day during the quarter. As with marketplace volumes, the growth in this metric is likely the result of the secular growth of the NFT ecosystem.
- Bored Ape Yacht Club (BAYC) floor soared 3844% — from 2.50 ETH to 98.60 ETH. This increase is likely due to the broader growth in popularity of PFP NFTs, as well as in the increased adoption of BAYC from an assortment of celebrities and high-profile public figures.
- TVL on L2s increased 896% from $374.17M to $3.72B. This measures the value that has been bridged into Ethereum’s L2 ecosystem, with growth likely fueled by the increased usage, liquidity, and deployment of applications to networks such as Arbitrum and Optimism.
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)
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)!!
Philoso-Feed 