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Ethereum [ETH] Analysis: How good or bad was Q2 for the network?

In its new report titled “State of Ethereum Report – Q2, 2022”, Bankless examined the performance of the Ethereum network and its ecosystem during the second quarter of 2022. It discusses network performance under four broad categories: protocol, decentralized finance (DeFi), non-fungible tokens (NFT) and layer 2.

Before the Ethereum 2.0 merger, here is an overview of the main developments in the Ethereum ecosystem during the previous quarter.

This is what the channel says

Bankless found that due to the downturn in the general market for cryptoBetween April and June, transaction fees paid to use the Ethereum network saw a 33.4% decline, from $1.91 billion in the first quarter to $1.28 billion in the second quarter.

In addition to fueling a drop in network revenues, the bearish environment of the last quarter led to a 20.6% drop in the index of average daily active addresses. Read also: The best crypto to buy now and keep: Ethereum (ETH). In the first quarter, it was 593,404.

However, the third quarter has so far been marked by an upward correction. Therefore, a spike in daily active addresses on the Ethereum network could be recorded by the end of the quarter.

With the planned transition of the Ethereum network from Proof Of Work (PoW) to Proof Of Stake (PoS), Bankless found that the amount of ETH staked on the Beacon chain increased by 116%, from 6.01 million to first quarter to 12.98 million in the last quarter.

Around 0.86% of the total ETH supply was staked at the end of the second quarter. On July 6, the network successfully merged into the Sepolia testnet. With the merger with the Goerli network expected in the coming weeks, the final merger with the Ethereum mainnet should take place before the end of the year.

Decentralized finance (DeFi)

Bankless found that the second quarter of the year saw a drop in the total locked value (TVL) of DeFi protocols hosted on the Ethereum network. This may interest you: 2 Cryptocurrencies to Watch for to “Buy The Dip” and Make Long-Term Profits.

During this period, TVL fell from $59.42 billion in the first quarter to $34.21 billion in the second quarter, a decline of 42.4%.

Total trading volume on decentralized spot exchanges built on the Ethereum network also saw a decline in the second quarter. Between April and June, it fell 9.0%, from $350.54 billion in the first quarter to $319.13 billion at the end of June.

Finally, Bankless noted that in the last quarter, the share of staked ETH increased by 177.5%. These were staked with noncustodial protocols that issued liquid staking derivatives.

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Thomas Estimbre
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