The new report by Bankless reviewed the Ethereum Network performance during the 2022 second quarter. It analyzed the blockchain’s performance in four categories, Layer 2, Non-Fungible Tokens, Protocol, and Decentralized Finance.
Amidst the Merge anticipation, here’re the salient developments in the ETH Ecosystem during the previous quarter.
Bankless observed that transaction fees related to the ETH Network plunged toQ2’s $1.28 billion from $1.91 billion during Q1. That comes as the overall cryptocurrency market saw declines in April-June.
Besides triggering declines in the platform’s revenue, last quarter’s bearishness saw the average daily address metric losing 20.6%. The index stood near 593,404 during the first quarter.
Nevertheless, the Q3 has so far seen bullish corrections. Hence the Ethereum Network might see a daily active addresses surge before the quarter ends.
As Ethereum awaits the planned migration to Proof-of-Stake from Proof-of-Work, Bankless discovered an upsurge in Ether stake on the Beacon Chain, recording a staggering 116% increase from the first quarter’s 6.01 million to last quarter at 12.98 million.
Market players staked around 0.86% of overall ETH supply by the second quarter-end. Meanwhile, the blockchain successfully concluded the Sepolia testnet merge on July 6. Moreover, analysts expect the final merge to happen before year-end as the Goerli Network merge will likely emerge in the upcoming weeks.
Decentralized Finance (DeFi)
Bankless discovered that DeFi protocols on the Ethereum blockchain noted TVL (total value locked) declines during the year’s second quarter. The timeframe saw the TVL plunging from $59.42B in the first quarter to Q2’s $34.21 billion, representing a 42.4% slump.
Also, the decentralized spot exchanges based on the Ethereum platform saw declining trading volumes in Q2. The metric dropped to end June at $319.13 billion from $350.54B in Q1, representing a 9% slump.
Lastly, Bankless noted that staked Eth saw a 177.5% increase in the previous quarter. The stakes involved non-custodial networks that offered liquid staking derivatives.
While publishing this blog, Ethereum changed hands near $1.432.70, gaining 0.18% within the past day. The alternative token remains in bearish hands as it fails to trigger notable surges. The alt will depend on improved broad market sentiment to ensure stable upswings.