The Ethereum network saw its revenues rise by 46% between $1.6 billion and $2.4 billion over the quarter that ended in 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.
The report shows that the daily average number of active addresses rose by 529,018 to 507,662. However, the report states that the average number of daily active addresses rose from 507,662 to 529,018. This is an 111% increase. The report stated that this is an important metric.
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
The Bankless report also revealed that the non-fungible token marketplace volume rose by 19,290%, from $606.3 million up to $116.4 trillion. Only the trading volumes of the “two largest generalized NFT marketplaces” namely Opensea and Looksrare. 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. According to the Bored Ape Yacht Club report (BAYC), there was a floor price.
“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.”
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