On Monday, former Ark Invest analyst James Wang released Ethereum's financial report, highlighting different data points. Although it was already clear to anyone following the market that the second largest cryptocurrency was having a very successful year, the report highlights other achievements mainly on its blockchain.
Ethereum's native currency, ETH, has gained nearly 80 percent in value in recent months. Last week, he set an ATH of $ 4,400 before backing out. During its rise, the largest altcoin on the market has taken much of Bitcoin's dominance from it. Having started the year with a market dominance of roughly 60 percent, Bitcoin has dropped to 40%. Ethereum, on the other hand, has risen steadily from the 10 percent levels to almost 20%.
Ethereum's rise has led some analysts to suggest that it will part with its 'altcoin' status and join Bitcoin as the most elite currency. This is a compelling argument that looks at the asset's market capitalization compared to Binance Coin (BNB), which is the third and closest to reaching it. At press time, ETH's market capitalization is $ 400 billion. BNB, on the other hand, costs roughly $ 80 billion. Interestingly, analysts expect Etheruem to continue to climb and hit highs of $ 10K ahead of the ETH 2.0 update.
Ethereum financial results
A comparison of Ethereum's Q1 2020 and Q1 2021 shows how quickly the project has turned around. For starters, the volume of transactions in the first quarter of 2020 was $ 33 billion. In 2020, this has skyrocketed to $ 713 billion, an increase of 2,065%. Another significant jump is in DeFi. Total blocked value (TVL) reached $ 52 billion, a growth of 6.400% compared to $ 0.8 billion last year. Stablecoin volume doubled from $ 20 billion to $ 40 billion.
Daily active blockchain addresses have risen 71% to around 607,000 from 354,000 in the first quarter of 2020. Furthermore, DEX volume also soared from just $ 2.3 billion to $ 177 billion, which means a increase of more than 7,500%. By far the most significant change, NFTs, sales increased from $ 0.7 million to $ 396 million, an increase of more than 55,000%.
Although most of the data points show a healthy ecosystem, the report has two notable blemishes. Transaction fees have increased by 20,158%. Similarly, the median transaction fee has risen to $ 7.63 from $ 0.06 recorded in 2020. High fees have seen the project face stiff competition from rivals such as Binance Smart Chain and seen it lose market dominance, especially in the DeFi market. However, with the next update, blockchain is expected to lower fees.
Justin Drake, a researcher at the Ethereum Foundation stated in the report;
"People are realizing that Ethereum is not just money, it is ultrasound money. "