Ethereum 2020: N-fold growth
Editor's Note: This article comes fromDecentralized financial community (ID: China_DeFi), reprinted by Odaily with authorization.
Editor's Note: This article comes from
Decentralized financial community (ID: China_DeFi)
Decentralized financial community (ID: China_DeFi)
, reprinted by Odaily with authorization.
The world is believable when there are more facts than opinions in the mind.
Recently, there are a lot of retrospective series in 2020. There are 26 articles lying on my list to be read. Listening to them together will make it clear. One article alone has limited meaning, but when read together, even if you don’t make any notes, it is very useful. It is more cost-effective in terms of time than how many point-of-view articles you usually read, because each article is a series of facts that the next-line witnesses of this topic think are the most meaningful. Reading one by one is too boring. In the future, I will organize and share these contents.
This article comes from Etherscan. The final prediction has no logical relationship with the previous statistics, so just look at the review. After all, etherscan is a blockchain browser, and the data statistics are still credible.
In 2020, some major changes have taken place in the world of Ethereum:
The price of ETH increased by 4.8 times in 2020
On-chain transfers increased by 58%, new addresses increased by 56%, and the number of smart contracts increased by 55%
grassroots
2020 is a year full of challenges for the whole world. At the same time, it turns out that it has a relatively positive impact on Ethereum - the Ethereum ecosystem has not weakened in many ways, and it has taken a big step towards our market capitalization. In this article, we will focus on some trends on the Ethereum blockchain, including:
grassroots
DeFi
Eth2 and L2
BTC on Ethereum
NFT
grassroots
price
Eth2 and L2
BTC on Ethereum
grassroots
price
Despite the rebound, ETH was still trading at 52% of its all-time high of $1,448 by the end of the year.
transfer
ETH has outperformed major assets like BTC, gold, and the S&P 500. Year-to-date, ETH is up +483%, outpacing BTC's +303%, dwarfing gold and the S&P's +24% and +15% returns.
Sidenote: While cryptocurrencies are widely believed to be an uncorrelated asset, the sharp drop in March was highly correlated with all 4 assets. Both ETH and BTC rose with the S&P towards the end of the year, while gold (maintaining its uncorrelated reputation) remained sideways.
24% and 15% are generally considered good returns!
transfer
In 2020, the number of transfers increased significantly, increasing by 38% to 345 million from the previous 250 million (2018). ERC20 tokens accounted for only 35% of transfers then, but now account for 54% of all transfers. Ethereum is powering a deeper and broader economy!
Moving into 2020, we see an upward trend in the monthly figures as well. A curious exception was the drop in production in the middle of the "flow mining" season in September.
Could it be that the actual number of "peasants" has declined?
USDT tops the list again, with 28% of transfers done using it
address
6 tokens without updated information entered the top 20, with a total of 2.8%
Source: Etherscan.io
Ranked below stablecoins are DEX tokens, with 4 tokens in the top 20 or 1.3% (UNI, BNT, KNC, ZRX)
New addresses increased from 84 million in 2019 to 131 million in 2020, a 56% increase.
handling fee
image description
Active addresses are on the rise in 2020, roughly tracking ETH prices. An exception was the sharp drop in March, when many fled financial assets in general while others bought ETH dips.
handling fee
contract
In 2020, Ethereum has consistently had the highest total fees in the crypto space due to its high usage.
Fees have been hovering around 100 Gwei as the mining season slows toward the end of the year. Meanwhile, in USD terms, it has also been slowly rising due to the rise in the price of ETH. Since the beginning of 2021, USD fees have broken a new ATH again as the price of Ethereum has skyrocketed.
Source: Etherscan.io.
DeFi
contract
image description
Source: DeFiPulse.com
market value
2020 has been a breakout year for DeFi. The TVL in these dApps grew 24x from $600 million at the beginning of 2020 to $15 billion by the end of the year.
market value
Decentralized Exchange (DEX)
The market capitalization of the top 100 DeFi tokens responded accordingly, jumping 11-fold from $1.6 billion to $19.8 billion. During the mining season, the index reached 40% of ETH’s market capitalization, and gradually declined towards the end of the year as ETH began to recover.
image description
DeFi's market capitalization comes from CoinGecko's top 100 DeFi tokens page
Decentralized Exchange (DEX)
It grew so big it messed up my y-axis!
stable currency
To put in perspective the DEX market and Uniswap's meteoric growth, we went from $166M in monthly volume reported across the market to Uniswap beating Coinbase's daily volume in just 8 months!
stable currency
Liquidity mining
image description
Eth2 and L2
$1.2 trillion, a 7-fold increase from $170 billion in 2019
Liquidity mining
Etherscan fulfilled user requests for flow mining in early August. Since then, nearly 500 coins have been listed on the page. Tracking the transfer of these tokens shows a big jump in September. This occurred despite a decrease in both overall transfers and active addresses during the same month, providing some credible insight that ongoing liquidity mining is being performed by a small fraction of Ethereum users.
Eth2 and L2
2020 is the year Ethereum users really feel the need to scale with record high fees. While not in final form yet, we do see the earliest fruits of the scaling effort on-chain.
Deposit to Eth2
Eth2 depositor details
Source: BeaconScan.com
A key goal of Eth2 is to ensure the decentralization of its validators. What is the current situation? Based on the internal tokenization of addresses, we estimate that 51% of all deposited ETH is currently controlled by 20 entities. This is a 9% increase from the previous month. This ratio will facilitate future monitoring. For those looking to participate in Eth2, remember that the entire community needs more individual validators!
After launching the Eth2 Beacon chain with 27,500 validators, this number quickly increased to 67,000 within a month. This is almost 4 times the minimum number of validators (16,284) that was originally targeted!
Source: BeaconScan.com
image description
Eth2 participation rate
Exactly how many of these validators are validating? The Medalla testnet has a low participation rate due to the fact that the network faces a “no risk” problem. Community members are steadfast in their insistence that the real-time network will not face such problems - and they have been proven correct, with a participation rate of over 96% so far since Beacon Chain went live.
image description
At the end of the year, more colorful!
BTC on Ethereum
Total number of tokens
BTC on Ethereum
Source: BTC on Ethereum
quantity
Total number of tokens
Another trend in 2020 is the tokenization of BTC on the Ethereum blockchain. When we discussed this topic on June 1st, we predicted that 5,000 BTC would be tokenized at that time. Fast forward 6 months - that number has increased 27x to 140,000 BTC!
image description
Just like Uniswap is still the king of DEXs, wBTC is still the king of BTC tokens. The vast majority of BTC traded on Ethereum in 2020 was done via wBTC, with renBTC far behind. Transaction volume peaked in September at 1.4 million BTC.
Non-fungible tokens (NFTs)
break down
As of Dec. 31, wBTC accounted for 81% of all tokenized BTC. Even in terms of token holders, it is way ahead of the rest with about 20,000. Followed by imBTC, about 2,800.
Non-fungible tokens (NFTs)
71% of this is provided by the 10 largest coins. These mainly consist of game tokens (Cryptokitty, Unchained Gods, Axie Infinity, Sorare & Dozer, about 42%) and domain names (ENS and Unstoppable Domains, about 19%). Collectible provenance and (of course) traffic mining are both in the top 10.
honor award
Digital art doesn't make the cut, but it's a big hit this year. Beeple raised $3.5 million through a weekend auction of his NFT-related art and projects that provide capital flowing into NFTs from DeFi, such as Rarible, which added liquidity mining to its governance token RARI.
image description
Beeple's 2020 collection showcased at Somnium Space VR
honor award
Other trends emerging in 2020 include:
Governance/DAO: Perhaps not as one might expect, DAOs and governance are back in vogue, and liquidity mining for governance tokens has played a huge role in the DeFi bull market. For example: Maker, desire, compound.
Grants: Funding for public goods on Ethereum has made significant progress, thanks in large part to quadratic funding by Gitcoin. Other donations include the Ethereum Foundation, clr.fund and Open Grants.
Prediction Markets: The number of users of these dApps has exploded, especially in the run-up to the US presidential election, as one of the markets has to be resolved through on-chain voting. For example: Catnip, Omen.
predict
Algorithmic Stable Assets: As yield farming brings in additional liquidity and capital, new and iterative approaches are being explored throughout the year. Examples include asset restructuring by YAM Finance, seigniorage shares by Mithril Cash, and reflex bonds by Reflexer Labs.
Virtual Events: As COVID has made conferences and in-person gatherings impossible, the community has responded by hosting a number of virtual events. Highlights include ETHGlobal's Hack Money and ETHOnline. Etherscan tracks more than 200 of them.
Adoption rate: Because industries around the world continue to adopt Ethereum, the volume of Ethereum is too large to cover. Highlights include PayPal, Visa, SAP, Baseline Protocol, CME and Reddit. Even Google Trends is showing record interest in Ethereum!
predict
A yearly roundup is no fun without some forecasts!
Without further ado, some of us:
Both EIP1559 and Eth2 phase 1 will go live in Q3
