Bankless: Ethereum Ecosystem 2022 Q2 Data Report and Ecological Highlights
Compilation of the original text: The Way of DeFiBen Giove
Compilation of the original text: The Way of DeFi
Data analysis for 2021 comes from James Wang's "Ethereum Q1 2021 Report”。
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Ethereum network revenue; source:Token Terminal
Network revenue fell 33.4% -- from $1.91 billion to $1.28 billion
This data measures the value of transaction fees paid to use the network. Of this, $1.09 billion in ETH (85.4% of it) was burned and removed from circulating supply.
The reduced demand for block space may be due to market weakness during the quarter, dampening speculative activity.
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ETH supply growth; source:Etherscan
This data measures the supply growth of ETH during the quarter.
The decrease may be due to the fee burn mechanism implemented through EIP-1559 in the third quarter of 2021.
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Ethereum daily active addresses; source:Etherscan
This data tracks the average number of wallet addresses conducting transactions on Ethereum per day during the quarter.
As with network revenue, the decline may be due to lower speculative appetite from users amid a bearish backdrop for the quarter.
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ETH pledged on the beacon chain; source: Nansen
This data measures the amount of ETH on the Beacon Chain just before the network's imminent transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
DeFi Ecosystem
DeFi Ecosystem
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Ethereum DeFi TVL; source:DeFi Llama
This data tracks the value of assets deposited into DeFi protocols deployed on Ethereum.
This decline may be due to the decline in the price of encrypted assets this quarter, as well as the liquidity outflow caused by the compression of yield, and the reduction of risk appetite of DeFi users.
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Stablecoin supply; source:Dune Analytics
This measures the number of dollar-pegged stablecoins issued and in circulation on Ethereum.
The growth can be attributed to increased demand for stable asset trading or leverage, as well as the growth of newly issued stablecoins such as FRAX.
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DEX monthly trading volume; source:Dune Analytics
This data measures the total trading volume on decentralized spot exchanges on ethereum during the quarter.
The decline in spot trading volume could be due to market conditions, as trading volume is highly correlated with bullish price action.
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andToken TerminalandGMX Analytics
The rise in perpetual trading volume can be attributed to the growth of dYdX - its trading volume increased by 598.4% year-on-year.
Note: Perpetual DEX volume tracks volume from dYdX, Perpetual Protocol, and GMX.
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Beacon Chain Deposit Types by Market Share -- Source:Dune Analytics
This data measures the share of ETH pledged with non-custodial protocols that issue liquid collateralized derivatives (LSDs).
NFT ecosystem
NFT ecosystem
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NFT market sales; source:Dune Analytics
The data tracks market activity for OpenSea, Foundation, LooksRare, Rarible and Superrare.
The reason for the increase may be the secular growth of the NFT ecosystem between the second quarter of 2021 and the second quarter of 2022--especially the rise of PFP collectibles.
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Number of daily NFT traders; source:Dune Analytics
This data measures the average number of users trading NFTs per day during the quarter.
Like market volume, growth in this metric may be a result of the long-term growth of the NFT ecosystem.
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BAYC floor price (ETH); source:Dune Analytics
L2 Ecosystem
L2 Ecosystem
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Ethereum L2 TVL; source:L2Beat
This data measures the value already bridged into the Ethereum L2 ecosystem, with growth likely driven by increased usage, liquidity, and applications deployed to networks like Arbitrrum and Optimism.
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Arbitrum network revenue; source:Cryptofees.info
This data tracks the value of fees paid by users to transact on each L2.
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Data source: Dune Analytics andarbiscan(The original article did not count the Arbitrum data, it was added after the query by the way of DeFi)
This data measures the average number of users who interacted with Optimism each month during the quarter, as well as the total number of unique addresses for Arbitrum.
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DeFi Proves Its Resilience
Despite declining TVL and slowing spot trading volumes, the Ethereum DeFi ecosystem proved its resilience through a considerable stress test throughout Q2.
The major turmoil begins with the implosion of UST in May 2022, which at its peak was the third largest stablecoin with a market cap of ~$18.78 billion. While the on-chain damage was largely limited to the Terra blockchain itself, UST's decline spread to the broader crypto industry, with the market down 45%.
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Daily Liquidations for Compound, Aave, and Maker -- Source:Dune Analytics
Despite the CeFi carnage, DeFi on Ethereum has weathered the storm without issue.
Three of the largest lending protocols, Compound, Aave, and Maker successfully processed $462 million in liquidations, continue to operate at 100% uptime, and the currentbad debts are negligible。
Interestingly, the transparency of DeFi protocols allows market participants to monitor the positions of entities like Celsius, and analysts on Twitter can also provide advance warning of the precarious state of lenders' finances.
While liquidity may have dried up and activity slowed in this bear market, the value proposition of on-chain financial systems has never been as clear as it was in Q2.
NFT is still hot
Ethereum's NFT ecosystem will remain hot throughout 2022.
NFT prices peaked in the second quarter, with Nansen's Blue Chip 10 -- a market-cap-weighted index that tracks the ten largest NFTs by market capitalization -- hitting an all-time high on May 2.
This coincides with the $317 million land sale of Otherside, the upcoming Metaverse project from Yuga Labs, the company behind the Bored Ape Yacht Club (BAYC) and the largest constituent of NFT-10.
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Nansen Blue Chip - 10; Source:Nansen
Another standout series that rose to fame in the second quarter was Goblintown. in a bear market"goblin town"Styling the meme, this collection of free mint NFTs has exploded in popularity after going viral on Twitter. Those who hold PFP have been spreading the hype, and its floor price has reached a height of 7.1 ETH in a few weeks.
The NFT space also saw several high-profile acquisitions and protocol launches in Q2. This includes the acquisitions of NFT aggregators Genie and Gem by Uniswap Labs and OpenSea, respectively. Additionally, OpenSea announced the launch of Seaport, its decentralized marketplace protocol.
L2 Token Season Begins
The Ethereum L2 ecosystem has passed one of its most important milestones with the launch of Optimism’s governance token, OP.
as"Big Four"The first company to launch a token in the OP will be used to manage"coin house", as part of Optimism's bicameral governance system. The model allows holders to vote on network upgrades and distribution of ecosystem rewards. In the future, it is likely that this token will also be used to decentralize and accumulate revenue from sequencers. The sequencer is the entity responsible for batching transactions to L1 and is currently only operated by Optimism PBC.
While the post-airdrop claim process has been problematic, the OP has demonstrated the potential that L2 tokens hold to drive increased interest, usage, and activity on the network.
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DeFi TVL on L2; Source:DeFi Llama
agreement fee"agreement fee"part of theIMX Token. Once the protocol fee is activated, holders will be able to earn 0.8% of all primary and secondary NFT sales on the network.
Additionally, Arbitrum recently started its Arbitrum Odyssey campaign, which aims to guide the use of popular applications on the network while rewarding participants with NFTs. The event was banned as gas fees skyrocketed as transaction volume hit a record highput offAfter the Arbitrum Nitro upgrade is complete.
Despite this hiccup, the inevitable launch of the Arbitrum token — coupled with Optimism’s forthcoming incentive program — should help increase L2 usage and accelerate user migration away from Ethereum.
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Merger is coming
Ethereum’s long-awaited transition from PoW to PoS finally seems to be nearing completion. The merger has been successfully completed on the Ropsten and Sepolia testnets, leaving only Goerli's last testnet before the mainnet launch.
The numerous reasons why the merger represents the most important event in Ethereum's history have been stated countless times, but are still worth repeating.
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Consolidated ETH issuance; source:Ultrasound.money
Of course, consolidation would be a huge bullish catalyst for the ETH asset. Based on the current amount of ETH pledged, the issuance required to secure the network after the merger is expected to drop from 5.5 million ETH to 600,000 ETH.
Based on network revenue over the past 30 days -- which is at its lowest level since summer 2021 due to corrections and fee burns -- ETH is projected to be net deflationary, with its supply projected to decrease by 0.6%.
Combined with the removal of structural selling pressure from the upgrade from miners to validators, this represents a significant improvement in ETH's long-term value proposition.
competition heats up
While many competitors have lost momentum in the bear market, Ethereum and its L2 still face significant competition from other ecosystems.
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Solana daily active accounts; source:Nansen
Another network that is putting increasing pressure on Ethereum is Solana. With a fast-growing NFT ecosystem, the network has the most users of any blockchain at 20.3 million in the past 30 days. Solana continues to grow its user base and maintain developer mindshare despite the bearish winds.
As usage increases, L2s like Optimism and Arbitrum have struggled, and both are going through the growing pains of implementing new cutting-edge technologies, other ecosystems continue to invest in Ethereum and its network of scaling solutions The door appears to be wide open for competitive pressure.
Note: This report has nothing to do with Ethereum or the Ethereum Foundation.
