Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

This article was originally inspired by James Wang’s ” Ethereum Announces Q1 2021 Results “. This release is not published by Ethereum or the Ethereum Foundation.

Ethereum, the world’s leading smart contract platform, has announced financial results for the first quarter ended March 31, 2022.

key result

The data compares Ethereum’s performance in Q1 2021 and Q1 2022.

Ethereum protocol

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

ETH network revenue (total revenue) and burning fee (protocol revenue) — Source: Token Terminal

Network revenue increased from $1.6 billion to $2.4 billion, an increase of 46%. This measures the value of transaction fees paid by network users in ETH. $2.48 billion in revenue (87%) was removed from the circulating ETH supply through the burn mechanism implemented by EIP-1559, which went live in August 2021.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Ethereum Supply Growth – Source: Etherscan

In the first quarter, ETH inflation fell 54% from 1.10% to 0.51%. This metric tracks the net change in ETH supply. New ETH is issued via block rewards, which are paid to miners as a reward for confirming network transactions, and burned via EIP-1559 as described above.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Ethereum Daily Active Addresses – Source: Etherscan

Average daily active addresses rose 4% from 507,662 to 529,018. This data tracks the average number of addresses interacting with the network on a daily basis during the quarter.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Ethereum Average Transaction Fee (USD) – Source: Etherscan

The average transaction fee dropped from $14.93 to $2.98, a drop of 80%. This measures the average fee users pay for Ethereum block space to confirm their transactions.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Cumulative amount of staked ETH – Source: Dune Analytics

The amount of ETH pledged rose from 5.2 million to 10.9 million, an increase of 111%. This represents the amount of ETH staked on the beacon chain before Ethereum transitioned from using a proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS). About 9.2% of the total ETH supply is pledged for the “merger”.

DeFi Ecosystem

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Ethereum DeFi TVL; Source: DeFi Llama

DeFi Total Value Locked (TVL) increased from $49.1 billion to $89.5 billion, an increase of 82%. This measures the value of assets deposited into Ethereum-based DeFi protocols such as decentralized exchanges, money markets, and options vaults.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Total stablecoin supply; source: The Block

Stablecoin circulating supply rose from $42.3 billion to $122.1 billion, an increase of 188%. This measures the value of both centralized and decentralized stablecoins that are either issued natively or bridged to Ethereum. Stablecoins counted include USDC, USDT, DAI, FEI, FRAX, MIM, UST, LUSD, HUSD, PAX, TUSD, sUSD, and BUSD.

Note: The above chart includes all on-chain stablecoins, not just Ethereum, as data for this metric has to be drawn from numerous sources. However, it still largely represents the growth of Ethereum).

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Spot and perpetual DEX trading volumes; source: Token Terminal

Spot DEX trading volume increased from $513.4 billion to $3.9 trillion, an increase of 667%, and perpetual DEX trading volume soared from $7.4 billion to $209.1 billion, an increase of 2704%. The data tracked the trading volume of decentralized spot exchanges running on the Ethereum mainnet and perpetual futures exchanges running on Ethereum Layer-2s, respectively.

Note: The above chart does not include GMX, which is included in the calculation of Perpetuals DEX volume. Data on this can be found here .

NFT Ecology

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

NFT market volume; source: Dune Analytics

The NFT market transaction volume exploded from $606.3 million to $116.4 billion, an increase of 19,290%. This tracks the trading volume of the two largest general-purpose NFT marketplaces, OpenSea and LooksRare. 226,176 unique wallets bought or sold NFTs during the quarter.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Cumulative total number of wallets holding NFTs – Source: Dune Analytics

The number of unique wallets holding NFTs increased by 306% from 981,315 to 3.98 million. This measures the number of wallet addresses holding ERC-721 tokens, the token standard used to issue NFTs, at a point in time.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Floor prices for BAYC and CryptoPunks ; Source: Dune Analytics

The floor price of CryptoPunks rose from 17.42 ETH to 106.87 ETH, an increase of 513%. And BAYC, although it only launched in the second quarter of 2021, its floor price, by this standard, is the most expensive series of PFP NFTs, at 108.93 ETH at the end of the quarter, based on the price of Ethereum at the time, the value About $351,000.

Layer 2 Ecology

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Total L2 Locked Value; Source: L2 Beat

Total L2 locked value increased by 964% from $686.9 million to $7.3 billion. This measures the total value locked in Ethereum L2 scaling solutions such as optimistic rollups, zkrollups, and validiums. As of press time, over $23 billion in assets, including $4.2 billion in ETH, have been bridged from Ethereum to these L2s and other L1s.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Optimism Monthly Active Addresses – Source: Dune Analytics

Optimism has an average monthly active addresses of 31,100, while Arbitrum has a cumulative unique address of 483,077.This measures the average number of addresses transacting on Optimism (one optimistic rollup) each month during the quarter, as well as the total number of unique addresses on Arbitrum (another optimistic rollup). Given the launch of both networks in Q3 2021 and the limited availability of data for both networks, we cannot make year-over-year comparisons.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Arbitrum Daily Network Revenue; Source: Cryptofees.info

Arbitrum’s network revenue was $9.4 million, while Optimism’s network revenue was $5.7 million. This measures the ETH fees that users pay to trade on two optimistic rollups, Arbitrum and Optimism, respectively.

Ecological Highlights

Stablecoins, Curve Wars, and Bribery

There were a number of exciting developments for Ethereum in the first quarter, perhaps the most important of which was the continued rise of stablecoins. As mentioned above, the circulating supply of stablecoins on Ethereum has grown by more than 188% year over year to more than $122 billion. In particular, algorithmic stablecoins like FRAX and UST have seen extraordinary growth relative to their competitors. This growth suggests that despite market weakness, capital may not have fled the ethereum economy in large numbers.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

6-month growth rate for stablecoins; Source: Coingecko & Bankless

A more notable second-order effect in the boom in the stablecoin space is the ongoing development of ” Curve Wars .”It’s a battle between mostly stablecoin DAOs to build liquidity for Curve, the decentralized exchange for DeFi’s biggest TVL. This “conflict” took center stage in the first quarter, as DAOs increased their holdings of CVX, the native token of Convex Finance, the protocol that controls the majority supply of CRV (Curve’s governance token), more than 73%.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

CVX held by the DAO; source: DAOCVX.com

To go along with their purchases, the DAO paid more than $89.2 million in bribes to CVX holders who locked their tokens to secure their votes in directing the release of CRV to the exchange’s different pools. With the annualized rate of return on these CVX bribes reaching over 40%, the first quarter solidified the notion that these payments can be a significant source of cash flow for strategic governance token holders. Additionally, Q1 saw a number of protocols such as Ribbon Finance , Balancer , Yearn , etc. proposing or implementing a switch to the ve token model, hoping to replicate the success of Curve.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Value of bribes paid to CVX holders and dollar earnings per CVX; source: Llama Airforce

Several exciting agreements were also announced this quarter:

  • Alchemix V2 , the second iteration of the self-paying lending protocol, includes support for a host of new collateral assets and yield-generating strategies
  • Aave V3 , the third version of the multi-chain money market with new standalone lending functionality
  • Syndicate Protocol , allowing the creation of on-chain investment clubs

NFTs seem to be heating up

Riding on the explosive growth of the first two quarters, Ethereum’s NFT ecosystem experienced several major turbulences in the first quarter.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

LooksRare Protocol Revenue; Source: Token Terminal

One of them was LooksRare, which launched in January, a new general-purpose NFT marketplace and competitor to OpenSea, which previously had an almost complete dominance in the space. LooksRare was built in stealth to conduct a quasi-vampire attack on its competitors by airdropping LOOKS, the native governance token, to OpenSea’s users. The marketplace also enables LOOKS holders to stake their tokens for release and ETH-based fee income generated by the platform. While this has led to allegations of laundering transactions in order to obtain these rewards, LooksRare facilitated over $22.1 billion in transaction volume during the quarter, generating over $444 million in revenue for holders. Even though LOOKS’ valuation is currently 79% below its all-time high, LooksRare appears to have turned the NFT industry from a monopoly to a duopoly.

Another major development in the first quarter was the establishment of Yuga Labs as an ecosystem force. Driven by the rising value of Bored Ape Yacht Club (BAYC), which has become a celebrity favorite and the most valuable NFT profile picture (PFP) collection by floor price, Yuga has made several major moves to Strengthen its position in this emerging field of the Ethereum economy.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Airdrop APE to BAYC and MAYC holders – Source: Apecoin.com

First, the company acquired IP from the Larva Labs NFT family, including Cryptopunks and Meebits. Soon after, Yuga announced the release  of Apecoin (APE) , in which part of the token’s supply was distributed to BAYC holders, with some airdrops in the six figures.

The price of APE, which is currently at an all-time high with a fully diluted valuation (FDV) of over $20 billion, will serve as a governance and utility token in the company’s various Metaverse ecosystem projects, such as the recently teased gameOtherside . These developments have made Yuga a blue-chip brand and Metaverse media giant in the broad NFT ecosystem.

L2 remains hot

Ethereum’s nascent Layer-2 ecosystem continued to grow in the first quarter.

As previously mentioned, TVL locked in Ethereum L2 increased by 964% year over year to over $7.3 billion by the end of the first quarter. Taken together, together with other L1 networks, this batch of L2 ranks fifth in TVL. Arbitrum is the leader in value locked in L2 with over $2.1 billion in TVL.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Arbitrum TVL Fi 来源 : DeFi Llama

Many L2 native applications have seen the most traction from the derivatives space. Taking advantage of the greater scalability provided by L2, applications like dYdX, Perpetual Protocol, and GMX have become three of the five largest decentralized perpetual exchanges, with listings on StarkEx, Optimism, and Arbitrum, respectively.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

In addition to perpetual contracts, another category of derivatives, options, has begun to see meaningful traction on L2, with Dopex and Lyra, two decentralized options exchanges, listed on Optimism and Arbitrum, respectively. Currently, the two apps have combined to hold more than $119 million in deposits, and each is ranked in the top five most used apps on its network.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Lyra TVL Fi 来源 : DeFi Llama

These derivatives protocols, along with other L2-native projects like Tracer DAO , Jones DAO , and Vesta Finance , appear poised to see further growth through several favorable factors, such as DeFi-native investors hedging and seeking out amid dangerous market conditions Increased desire for alternative revenue sources, as well as tokens for upcoming rollups of their respective rollups (more on that below).

Outlook

While the market faces a maelstrom of macro headwinds, there are several catalysts on the horizon for Ethereum that seem likely to strengthen its fundamentals, competitive positioning, and token economics.

merge, merge, merge

On top of that is the upcoming PoW to PoS merger, and this transition will bring many major changes. For Ethereum is the network and ETH is the asset, for the former, the merger can reduce the energy consumption of the blockchain by an order of magnitude, because the energy consumption of PoS is much lower than that of PoW. This helps reduce Ethereum’s environmental impact and increases its appeal among traditional institutional investors who are ESG-conscious (environmental, social and governance) when making allocation decisions.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Predicted combined ETH issuance; source: Ultrasound.money

The merger will also have a major impact on ETH’s supply schedule and value proposition. While EIP-1559 caused its inflation rate to drop significantly, the transition to PoS seems likely to bring about a deflationary Ethereum. Based on the current amount of ETH pledged and the gas consumption since the activation of EIP-1559, it is expected that ETH will experience deflation, and the estimated issuance is -2.1%.

While the current staked supply is non-transferable, it will be gradually unlocked and liquid after the merger, and this massive supply shock could have a long-term Bitcoin halving type impact as it greatly reduces the Selling pressure on ETH.The merger may also establish the pledge rate of ETH, which is expected to reach a Web3 risk-free rate of up to 10%+ after the merger, further increasing the attractiveness of Ethereum as a cash flow productive asset and Internet-native bond .

In addition to changing Ethereum’s ESG profile and ETH as an asset, the merger will help pave the way for future scalability upgrades such as sharding and danksharding. This will allow Ethereum to better meet the insatiable need to transact in its economy.

Launch of Rollup Token

Another major catalyst for Ethereum’s growth is the launch of the L2 token. While L2 has managed to gain meaningful traction without a native token or network-wide incentive program, the launch of governance tokens for these networks appears poised to fuel its growth and usher in the long-awaited “Summer of L2.”

The first dominoes in this regard fell this week, with Optimism announcing the launch of $OP on April 26, which will be used for network governance and likely to be used to incentivize players within its nascent but thriving DeFi ecosystem. Activity.

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

OP Token Allocation; Source: Optimism Docs

As with the explosive growth of ecosystems that leverage incentive programs like Avalanche, Polygon, and Fantom, this strategy has been very effective in bootstrapping usage, liquidity, and developer activity. If this were implemented, Optimism would experience a similar level of growth, which is also reasonable.

Along with Optimism, two other general rollups, Arbitrum and ZK Sync, are prime candidates to bring similar usage growth through the launch of tokens. While Arbitrum has not confirmed that it will launch a token, ZK Sync has revealed that it will launch a token to decentralize their rollups sequencer, an entity that publishes transactions to L1 in batches.

The launch of these rollup tokens and incentive programs should be an important catalyst to help Ethereum regain market share from other Layer-1 networks (Ethereum’s share of DeFi TVL total has fallen from 80% to 51%), And improve the accessibility for everyday users to participate in the decentralized economy.

appendix

Protocol data

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

DeFi Ecological Data

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

NFT ecological data

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

L2 Ecological Data

Bankless: Ethereum data report and ecological highlights in the first quarter of 22 years

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/bankless-ethereum-data-report-and-ecological-highlights-in-the-first-quarter-of-22-years/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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