NEWSLETTER
The Q4 2022 report for Ethereum outlines its 94% drop in network revenue related to falling cryptocurrency prices that have yet to recover from last year’s bear market that crippled most cryptocurrencies. cryptocurrencies described in four categories: NFT, Layer 2, DeFi and Protocol.
Ethereum Q4 Report Breakdown for 2022
Ethereum’s L2 ecosystem experienced some setbacks during the fourth quarter of last year, with the TVL declining 29.2% to $4.1 billion from $5.8 billion. The decline was a result of falling Ethereum prices, as well as falling other crypto assets.
Additionally, for the Ethereum NFT ecosystem, trading volumes for the non-fungible token market dropped by 64% to $2.6 billion from $7.3 billion. The drop is attributed to weakness in the NFT and crypto markets. Additionally, the number of NFT day traders decreased by 14.4% to a daily average of 17,562 from 20,467.
The DeFi ecosystem recorded a 75% drop from $95 billion to $23.2 billion caused by bearish cryptocurrency prices. The drop is also the result of swapping centralized stablecoins for fiat currencies. Additionally, deleveraging by borrowers employing CDP-based stablecoins, including MIM and DAI, contributed to the decline.
Additionally, the circulating supply of stablecoin has also dropped from $90 billion to $85.78 billion. The ETH inflation rate fell by 101%. Its cause was due to the reduction in emissions since its transition to Proof of Stake.
decision Network revenue also declined during the fourth quarter, falling from $5.7 million to $749 thousand, posting an 86.8% decline in revenue. Optimism Network revenue also leveled off from $2.5 million to $913k, which was a 63% drop. The decrease was caused by reduced demand for block space.
Milestones achieved in Q4 2022
Ethereum Q4 2022 Report explains the key KPIs and growth of cryptocurrency and its milestones covered in the L2 ecosystem. Among them is the ‘transaction flipping’.
Ethereum L2s processed more transactions than L1 since Oct 9, 2022. Currently, the summaries are much higher at 2.84* for L1 transactions.
It is evidence that the Ethereum ecosystem is safely sailing through the bear storm with exciting promise for the future. Regardless of the dips, the future of Ethereum is still unknown.
