Ethereum

ETH Network Q1 Revenue Grows 46% to $2.4 Billon, Token Inflation Rate Drops down to 0.51%

ETH Network Q1 Revenue Grew 46% to $2.4 Billion, Token Inflation Rate Drops to 0.51%

The revenues accrued by the Ethereum network rose by 46% from $1.6 billion to $2.4 billion during the first quarter of 2022. Contributing to the growth in the network’s revenues were non-fungible token (NFT) marketplace sales, which rose by more than 19,000% during the period under review.

ETH Inflation Rate Drops to 0. 51%

Ethereum’s revenues rose by 46% from $1.6 billion to $2.4 billion during the first quarter of 2022, a new report by Bankless has said. According to the report, about 87% or $2.1 billion of this revenue was removed from the ETH‘s circulating supply through the burning mechanism.

The token burning mechanism was made possible by the network’s EIP-1559 upgrade that was carried out in August 2021. As a consequence of this token burning process, the ETH network’s inflation rate — a metric that measures the net change in the supply of ethereum tokens — dropped from 1. 10% to 0. 51% during Q1.

In terms of the average of daily active addresses, the report states that these rose from 507,662 to 529,018. On the other hand, the number of staked ETH grew from 5.2 million to 10.9 million, a 111% increase. The report stated:

This represents the number of ETH staked on the Beacon Chain ahead of Ethereum’s transition from utilizing a proof-of-work (PoW) consensus mechanism to proof-of-stake (PoS). Approximately 9.2% of the total ETH supply is staked in anticipation of ‘The Merge.’

NFT Volumes Surge

Meanwhile, the Bankless report revealed that non-fungible token (NFT) marketplace volumes rose by an astronomical 19,290% from about $606.3 million to $116.4 billion. Only the trading volumes for the “two largest generalized NFT markets”, namely Opensea or Looksrare, were considered. During the period under review, there “were 226,176 unique wallets to either buy or sell an NFT.”

With respect to the number of wallet addresses which held an ERC721 token — the token standard used to issue NFTs — the report said these rose 306% from 981,315 to 3. 98 million. In terms of the floor price of Cryptopunks — a metric that tracks the lowest price at which the uniquely generated character is sold — the report revealed that this rose by 513% from 17. 42 ETH to 106. 87 ETH. The Bored Ape Yacht Club (BAYC) floor price was stated in the report: ETH.

“While it launched in Q2 2021, the floor price of Bored Ape Yacht Club (BAYC), the most expensive profile-picture NFT collection by this metric, ended the quarter at 108. 93 ETH which was worth ~$351,000 based on prices at the time.”

What are your thoughts on this story? Let us know what you think in the comments below.

Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, author, and writer has been awarded the Zimbabwe Journalism Award. He has written extensively on the economic problems of certain African countries and how digital currencies can offer an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. Bitcoin.com does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage caused by or alleged to have been caused by the use or reliance of any content, goods, or services mentioned here.

Ethereum

Bitcoin (BTC) Price Taps $67K, Ethereum (ETH) Climbs Above $3.1K (Weekend Watch)

Bitcoin’s most recent run continued in the past 24 hours as the asset’s price climbed to its highest price in over a month at just over $67,400 yesterday.

Ethereum has also joined the party at last, having surged past the coveted resistance line of $3,000 and jumping above $3,100.

BTC Sees 5-Week Peak

Bitcoin suffered a lot at the start of May as it dumped to a multi-month low of under $57,000. It began to recover some ground in the following week when it soared past $65,000 on May 6 but quickly reversed its trajectory and saw its price dropping to under $61,000 on May 10.

The bulls intercepted the move at this point and didn’t allow any further declines. Just the opposite, BTC maintained its ground last weekend and started climbing on Monday to just over $63,000. Another brief correction came on Tuesday to $61,200, but the lowering inflation rates in the US, which were announced on Wednesday, sent the cryptocurrency flying.

In a matter of hours, BTC skyrocketed by several grand and jumped past $66,000. Although there was another brief retracement, the growing Bitcoin ETF inflows meant more price gains for the underlying asset, which charted a 5-week high of over $67,400 yesterday.

Despite losing some ground since then, BTC still trades around $67,000 now. Its market cap has increased to $1.320 trillion on CG, but its dominance over the alts is slightly down to 51.6%.

Bitcoin/Price/Chart 18.05.2024. Source: TradingView

ETH Goes Beyond $3.1K

The second-largest cryptocurrency was among those who trailed behind in terms of gains, as reported earlier and was losing ground to BTC. This was because ETH couldn’t reclaim decisively $3,000 despite several challenges in the past few weeks.

However, that resistance level finally gave in yesterday, which allowed Ether to shoot up above $3,100 for the first time in over a week.

Most other larger-cap alts are also in the green, with gains of around 1-2%. In contrast, Toncoin has retraced by more than 3%, and so has HEAR, which is down by 4%.

The total crypto market cap has added around $20 billion overnight and is now at $2.560 trillion on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto

SPECIAL OFFER (Sponsored)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 at BYDFi Exchange: Up to $2,888 welcome reward, use this link to register and open a 100 USDT-M position for free!

Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

Ethereum

Base to Launch Online Hackathon With 200 ETH in Prizes, Sponsored by Stripe, Shopify, and More

Base, the Ethereum Layer 2 solution incubated by Coinbase, has announced the Onchain Summer Buildathon. The event, which runs from May 31st to June 30th, invites builders worldwide to showcase their skills in various onchain use cases, including payments, commerce, gaming, and social. The Buildathon offers 200 ETH in total prizes across eight sponsored tracks…
Read More

Ethereum

Ethereum (ETH) Price to Reach $10,000 by the End of 2024? Analyst Weighs In

TL;DR

Ethereum’s price recently surpassed $3,000, with analysts predicting further significant gains.
Declining MVRV ratio, negative exchange netflow, and potential approval of a spot Ethereum ETF in the US could drive ETH’s value higher.

Is ETH Gearing up for an ATH?

The cryptocurrency market has experienced a significant uptrend in the past few days, with numerous digital assets rising to multi-week highs. Although not witnessing such a substantial increase, Ethereum (ETH) is also among the notable gainers.

Its price surpassed the $3,000 mark, representing a 4% increase on a daily scale. Numerous analysts believe this could be the starting point of a bull run that can take place in the near future.

The X user Michael van de Poppe is among the optimists. He claimed recently that ETH is on its way to reaching a higher timeframe support level. “The good times are there in a few weeks’ time,” he assumed.

CryptoYoddha was even more bullish, envisioning a price explosion toward the $10,000 milestone by the end of the year.

Last but not least, World of Charts argued that ETH has started breaking the “falling wedge consolidation” on a 12-hour timeframe. “Trend is already up and expecting continuation towards $4500 in coming weeks,” the analyst forecasted.

Observing Some Important Factors

One element signaling that ETH’s value could be on the verge of a rally is the Market Value to Realized Value (MVRV). It helps to identify if the asset is overvalued or undervalued. A high ratio suggests a market top, while a low one may indicate a good buying opportunity. The MVRV has been on a significant downfall since mid-March.

Another factor is ETH’s exchange netflow, which has been predominantly negative in the past month (according to CryptoQuant’s data). Shifting from centralized platforms towards self-custody methods is considered bullish since it reduces the immediate selling pressure.

Last but not least, ETH’s price may head north in case of the approval of a spot Ethereum ETF in the United States. However, such a green light may also lead to the same immediate “sell-the-news” event witnessed after the BTC ETF approvals in January.

SPECIAL OFFER (Sponsored)

Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive $600 exclusive welcome offer on Binance (full details).

LIMITED OFFER 2024 for CryptoPotato readers at Bybit: Use this link to register and open a $500 BTC-USDT position on Bybit Exchange for free!