- Ethereum observed a spike in revenue over the last quarter.
- However, NFT volumes surged as floor prices for blue chip NFTs fell.
Despite experiencing volatility in the past year, the Ethereum [ETH] network witnessed a growth in recent months. The introduction of the Shapella upgrade, which facilitated staking withdrawals from the beacon chain, has further stimulated interest in the protocol.
Realistic or not, here’s ETH’s market cap in BTC’s terms
How did Ethereum perform in Q2?
One area where Ethereum witnessed the most amount of growth was revenue. Based on Ethereum’s income statement, there was a substantial increase of 56% in total fees during Q2. Furthermore, Ethereum demonstrated a remarkable gross profit margin of 84%.
However, despite the growth showcased in terms of revenue, there was a slight decline in activity observed in the protocol. Based on recent data, Ethereum’s daily active users (DAU) experienced a year-on-year decline of -3% and a quarterly decline of -4%.
Additionally, the average daily transactions decreased by -4% compared to the previous year and -1% compared to the previous quarter.
Regardless, DAUs across the Ethereum Ecosystem have witnessed significant growth, doubling in numbers. Layer 2 (L2) Protocols such as Polygon [MATIC], Optimism [OP], and Arbitrum [ARB] have attracted large users during this quarter.
However, it is important to note that this does not necessarily indicate a twofold increase in the number of individuals interacting within the Ethereum Ecosystem. Nevertheless, this emphasizes the heightened level of engagement observed within the ecosystem.
Source: Artemis.xyz
In terms of transactions, Ethereum has witnessed a stagnation with an average of approximately 1 million transactions per day.
However, across the broader Ethereum Ecosystem, average transactions per day have experienced a surge of around threefold. This indicates a substantial rise in transactional activity beyond the network itself.
Source: Artemis.xyz
How is the NFT sector doing?
The NFT sector also observed growth over the last month. According to Dapp Radar’s data, the volume of NFTs being traded and the number of sales occurring on the network increased materially. However, the floor price of most blue-chip Ethereum NFTs declined during this period.
Read Ethereum’s [ETH] Price Prediction 2023-2024
The discounted price of these NFT collections may have driven buyer interest in these NFTs.
Source: Dapp Radar
At press time, ETH was trading at $1,880.46 as its price surged by 1.86% in the last 24 hours.
