Digital money, Ethereum’s (ETH) network revenue, has fallen 33.4 per cent in the second quarter of the year.
The figure, which was $1.91 billion in the first quarter, now stands at $1.28 billion.That’s according to a Bankless Times report, the network burned $1.09 billion of the funds, locking them out of circulation.
“This drop is due to a weak crypto market,” explained Jonathan Merry, BanklessTimes’ Chief Executive Officer. He added: “The prevailing bearish conditions have watered interest from crypto speculators. Consequently, transaction activity has gone down and with it the network’s revenue.”
The average daily active addresses also fell from 593,404 to 471,447, a 20.6 per cent decline. The decrease in trading could be linked to a drop in speculative interest among investors owing to the quarter’s negative backdrop.
Also, the network’s DeFi TVL fell 42 per cent — from $59.42 billion to $34.21 billion – during the same period. The key reason for this decrease is the decline in cryptocurrency prices throughout the quarter. Other reasons include liquidity outflows caused by reduced yields and a less risky attitude among Defi users.
As of second quarter 2020, investors had staked 12.98 million ETH on the Beacon Chain, an increase of 116 per cent from 6.01 million ETH at the beginning of the quarter. Users had stacked about 11 per cent of ETH by the close of second quarter.
NFT marketplace volumes have exploded in the past year, growing 2439.2 per cent from $509.36 million to $12.93 billion.