Ethereum [ETH] traders going long must know these Q3 stats

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Cryp­tocur­ren­cy research plat­form Mes­sari, in a new report, assessed the per­for­mance of Ethereum [ETH] in Q3 2022. Titled “State of Ethereum Q3 2022,” Mes­sari found that the blockchain wit­nessed an uptick in activ­i­ty on the net­work in Q3 over the last quar­ter. How­ev­er, the net­work also logged some sec­toral declines and suf­fered a gen­er­al drop in rev­enue due to the activ­i­ties of Lay­er 2 scal­ing solutions.

In that case did ETH wit­ness some actu­al growth? 

Network performance

Accord­ing to Mes­sari, the aver­age dai­ly trans­ac­tions over the quar­ter reached a total of 1.2 mil­lion. This was a 6% incre­ment from Q2 of 2022. The uptick in dai­ly trans­ac­tions was seen in ETH trans­fers and DeFi trans­ac­tions, which accord­ing to the report, grew by 7% and 14%, respec­tive­ly, over the quarter. 

Source: Mes­sari

Fur­ther­more, growth in aver­age dai­ly trans­ac­tions cul­mi­nat­ed in increased active address­es on Ethereum over the quar­ter. The net­work saw 550,000 dai­ly active address­es, rep­re­sent­ing a 5% growth from the pre­vi­ous quarter.

Accord­ing to Mes­sari, the gen­er­al ral­ly in active address­es on Ethereum result­ed from the surge in active address­es on 27 July. This was also when Chan­dler Guo announced plans for an Ethereum PoW fork and some “main­te­nance activ­i­ty” from Binance. 

Source: Mes­sari

Over the quar­ter, Mes­sari found that ETH sup­ply grew by 0.7% or 4.2% annu­al­ized. Mes­sari fur­ther found that since the offi­cial tar­get block dif­fi­cul­ty for the merge was set in July, ETH call vol­ume ral­lied steadi­ly across exchanges. 

Addi­tion­al­ly, the ratio of calls to puts also went up. Accord­ing to the report:

“The ratio of calls to puts also increased. The strike prices for these calls was largest at the $5,000 lev­el for the Sep­tem­ber 30 expiry and $2,500 for the Decem­ber 30 expiry. ETH hov­ered around $1,500 for the last few months when these bets would have been placed.”

Source: Mes­sari

Here comes the decline

While ETH in smart con­tracts has been on an uptrend since 2020, the col­lapse of Ter­ra in May halt­ed this growth, Mes­sari report­ed. As of 9 May, when Ter­ra col­lapsed, the total per­cent­age of ETH in smart con­tracts peaked at 30%. Accord­ing to Mes­sari, since the col­lapse of Ter­ra, ETH in smart con­tracts declined. 

Fur­ther­more, due to the uptick in the activ­i­ties of L2s over the quar­ter, the net­work saw a decline in rev­enue. As a result, total fees on the chain dropped to the low­est lev­el since 2020. Accord­ing to Mes­sari, a con­tin­ued decline in fees on the net­work will “direct­ly impact the stak­ing yields in a post-Merge world.”

Fur­ther, while ETH trans­fers and DeFi dai­ly trans­ac­tions saw growth over the quar­ter, dai­ly NFT and bridge trans­ac­tions on the chain fell by 17% and 41%, respectively.

Source: Mes­sari

Ethereum logged a dai­ly aver­age of 181,000 NFT trans­ac­tions per day over the quar­ter and 9,000 bridge trans­ac­tions with­in the same period.

Source: Mes­sari

With the Merge out of its way, Ethereum devel­op­ers are focused on build­ing up the net­work for more wide­spread adop­tion. Up next for the net­work is the Shang­hai upgrade, where pre-merge-staked ETH will be avail­able for with­draw­al, and mul­ti­ple improve­ments are expect­ed on the network.

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