Ethereum network revenue drops by 33,3% in the second quarter

According to experts at Bankless, the fall indicates bear trends in the crypto market

20.07.2023 - 08:25

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What’s new? Ethereum network revenue dropped by 33,3%, from $1,27 billion to $847 million, according to a Bankless report. Network revenue measures the total value of transaction fees paid by users to validators, as well as the burnt portion of those fees. According to experts, the drop is indicative of bear trends in the crypto market. They explained that Ethereum revenues have declined as demand for the blockchain space has fallen.

Bankless’ report

What else is known? The value of burned ETH in dollars fell by 35%, from $1,09 billion to $713 million. The altcoin’s inflation rate fell by 213%, from 0,71% to -0,8% on average. This indicator tracks the growth in the total supply of the asset during the quarter. It turned negative due to the EIP-1559 upgrade implemented in 2022 along with the network’s transition to the Proof of Stake (PoS) consensus algorithm.

The average daily number of active addresses decreased by 6%, from 471 447 to 444 419. This figure reflects the average number of wallet addresses from which daily transactions with Ethereum are made during the quarter.

As of July 20, 08:00 UTC, ETH is trading on Binance at $1912, having added 0,24% per day and 2,3% per week, according to data from the CoinGecko aggregator. The asset’s capitalization exceeds $229,9 billion and its market share is 18,3%.

Analyst Benjamin Cowen predicts the collapse of the ETH rate to bitcoin

According to the expert’s chart, the value of altcoin may fall by almost 40%

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Earlier, members of the Ethereum community proposed creating a new standard, ERC-7265, which would allow blockchain-based protocols to add a security block to smart contracts and stop token transactions in the event of a hack.

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