Jonathan Merry, BanklessTimes’ CEO, said “The dismal state of the cryptocurrency market is to blame for this decrease. Crypto speculators have shown less interest in the market as a result of the current negative circumstances. As a direct result of this, the amount of activity with transactions and the money generated by the network have both decreased.”
The Ethereum network remains one of the most active and popular blockchain networks despite the decline in income that it has seen. The network is home to a large number of apps that are decentralized (dApps). Additionally, a large number of corporations are using it for blockchain enterprise solutions.
Also seeing a reduction of 20.6% was the number of average daily active addresses, which went from 593,404 to 471,447. The unfavorable environment that prevailed throughout the quarter may be responsible for the decline in trading activity. This may be because investors have less interest in making risky investments.
The number of addresses that are active on a daily basis is an excellent measure of the utilization and activity on a network. A fall in the number of active daily addresses almost often indicates less activity on the network as well as a decrease in the number of individuals utilizing it.
However, it is essential to keep in mind that the number of addresses that are actively being used on a regular basis is only one measure. It’s possible that it’s going down, despite the fact that other indicators, like transaction volume, are going up. Therefore, this drop should not be construed as an indication that the Ethereum network is losing momentum or utilization. Rather, the opposite is true.
During the same time period, DeFi TVL saw a decline that was equivalent to a decline of 42 percent, falling from $59.42 billion to $34.21 billion. The consistent drop in pricing of cryptocurrencies throughout the quarter is the primary factor contributing to this loss. Other causes include a less risk-taking mentality among Defi users as well as withdrawals of money that were induced by decreased rates.
Users are given chances to stake their digital assets and receive incentives for doing so via the use of yield-bearing defi protocols. However, as a result of the declining price of ETH, yield rates have been decreasing, which discourages consumers from locking their cash into them. They (the users) choose, rather, to cash out or to move on to alternatives that are more lucrative.
On the Beacon Chain, investors have staked a total of 12.98 million ETH as of the second quarter of 2022. When compared to the 6.01 million ETH that were in circulation at the beginning of the quarter, this statistic implies a growth of 116 percent. By the end of the second quarter, users had staked around 11 percent of all ETH.
In spite of the fact that this is a considerable quantity, it is important to keep in mind that the ultimate objective of Ethereum is to have at least half of all ETH tokens staked. During the process of migrating to PoS, this will contribute to maintaining the network’s safety and consistency.
In Ethereum’s long-awaited transition from Proof of Work (PoW) to Proof of Stake, the Beacon Chain will serve as the central coordinating chain at the heart of the process (PoS). The goal of this shift has been to enhance the scalability and security of Ethereum, and it has been in the works for quite some time.
The amount of transactions conducted on NFT marketplaces has skyrocketed over the last year, increasing by 2439.2 percent, from $509.36M to $12.93B. The increase may be linked to the continuous expansion of the NFT ecosystem, in particular the meteoric rise in popularity of NFT collections such as PFPs, which occurred during the second quarters of 2021 and 2022.
In the years to come, we may anticipate the market for non-fungible tokens (NFTs) to see even more expansion as an increasing number of individuals gain knowledge of NFTs and their possible worth.