Ethereum [ETH]: Identifying how good or bad Q2 was for the network

In its new report titled “State of Ethereum Report — Q2, 2022,”  Bankless reviewed the efficiency of the Ethereum Community and its ecosystem within the second quarter of 2022. It touched upon the community’s efficiency beneath 4 broad classes – Protocol, Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and Layer 2.

Forward of the Ethereum 2.0 Merge, here’s a take a look at the salient developments inside the Ethereum Ecosystem over the earlier quarter. 

Right here’s what the community says

Bankless discovered that because of the downturn of the final crypto-market between April and June, transaction charges paid to make use of the Ethereum Community noticed a 33.4% decline – From $1.91B in Q1 to $1.28B in Q2.

Along with fueling a fall within the community’s income, the bearish backdrop during the last quarter led the typical every day lively addresses index to fall by 20.6%. Within the first quarter, this stood at 593,404.

Nonetheless, the third quarter to date has been marked by a bullish correction. Therefore, an uptick in every day lively addresses on the Ethereum Community is likely to be recorded by the tip of the quarter. 

Supply: Etherscan

With the Ethereum community’s deliberate transition from Proof Of Work (PoW) to Proof Of Stake (PoS), Bankless discovered that the quantity of ETH staked on the Beacon Chain grew by a whopping 116% from 6.01M within the first quarter to 12.98M final quarter.

About 0.86% of the overall provide of ETH was staked by the tip of the second quarter. On 6 July, the community efficiently accomplished its merge on the Sepolia test net. With the merge with the Goerli Community anticipated within the coming weeks, the ultimate merge with the Ethereum mainnet is predicted earlier than the tip of the 12 months. 

Decentralized Finance (DeFi)

Bankless discovered that the second quarter of the 12 months was marked by a decline within the complete locked worth (TVL) of DeFi protocols housed on the Ethereum Community.

Inside that interval, TVL fell from $59.42 billion in Q1 to $34.21B in Q2 – A 42.4% decline.

Supply: DefiLlama

Additionally registering a decline in Q2 was the overall buying and selling quantity on decentralized spot exchanges constructed on the Ethereum Community. Between April and June, this fell by 9.0%, from $350.54 billion in Q1 to $319.13 billion by the tip of June.

Lastly, Bankless famous that within the final quarter, there was a 177.5% increment within the share of ETH staked. These have been staked with non-custodial protocols that issued liquid staking derivatives.

Supply: Dune Analytics