According to a new analysis by Bankless, Ethereum’s revenues increased by 46% in the first quarter of 2022, from $1.6 billion to $2.4 billion. According to the research, the burning mechanism withdrew around 87 percent of the earnings, or $2.1 billion, from the circulating supply of ETH.
The network’s EIP-1559 upgrade, which took place in August 2021, enabled the token burning mechanism. The ETH network’s inflation rate — a metric that quantifies the net change in the quantity of ethereum tokens — decreased from 1.10 percent to 0.51 percent in Q1 as a result of this token burning process.
According to the data, the average number of daily active addresses increased from 507,662 to 529,018. The amount of staked ETH, on the other hand, increased by 111% from 5.2 million to 10.9 million. The report says the following about this 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.’”
Volumes of NFTs Increase
Meanwhile, according to the Bankless research, non-fungible token (NFT) marketplace volumes increased by 19,290 percent from $606.3 million to $116.4 billion. Only the trading volumes of Opensea and Looksrare, the “two largest generalist NFT marketplaces.” “There were 226,176 unique wallets to either buy or sell an NFT” during the time period under consideration.
According to the research, the number of wallet addresses holding an ERC721 token. That’s, the token standard used to create NFTs — increased by 306% from 981,315 to 3.98 million.
The floor price of Cryptopunks — a parameter that tracks the lowest price at which the uniquely produced character is sold. That’s, increased by 513 percent from 17.42 ETH to 106.87 ETH, according to the research.
The study stated the following about the Bored Ape Yacht Club’s (BAYC) 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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