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DeFi2.0: Ethereum Soaring: Metasverse explosion

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Fiscal year 2022 will be a pivotal year for Ethereum.

DeFi2.0 and DeFi2.0 Defidefi2.0: Bankless | Ethereum Q4 Report

Originally by Ben Giove

Yangz, the tao of the meta-universe

The original inspiration for this article was "Ethereum announces Q1 2021 Results" by James Wang

One of the key documents to assess a company's health is its quarterly earnings report. These reports include cash flow, income statements and key growth indicators.

Ethereum is not a company...... It cannot publish its own quarterly reports. So we're going to replace it.

The data below shows the massive year-over-year growth of both the ethereum protocol and the Ethereum ecosystem between Q4 '20 and Q4' 21. All of these can be found on the chain for anyone to audit.

This is the economic data of an emerging digital nation. An economy that has made a stunning leap in growth over the past 12 months.

The state of Ethereum is powerful.

Protocol overview

· Online revenue ‌ increased from $231.41 million to $4.34 billion, an increase of 1,777%. Network revenue refers to the fees paid by users in ETH for transactions on the network. Of this amount, us $3.78 billion (87%) of ETH was "burned" and removed from circulation supply via IP-1559.

· Average daily active addresses ‌ increased 35% from 425,636 to 572,700. This measures the average number of individual wallet addresses that interacted with the web each day during the quarter.

· ETH inflation rate ‌ decreased by 64% from 1.13% to 0.46%. This tracks the increase in ETH supply, minus the cost of burning, due to the block award to miners as compensation for confirming the transaction.

· ETH pledge ‌ increased by 471% from 1,545,486 to 8,818,933. This measures the amount of ETH pledged on the "beacon chain", which will eventually merge with the current Ethereum network when it switches from proof of work (PoW) to proof of Work (PoS). Currently, about 7.40% of the total ETH supply is pledged.

· Average transaction fees rose 557% from $4.09 to $26.89. This represents the average price paid per transaction by users on the network.

Ecosystem profile

· DeFi TVL grew 770% from $17.73 billion to $154.20 billion. This measures the value of assets deposited in ethereum-based DeFi applications.

· DEX trading volume increased from usd 48.97 billion to USD 291.53 billion, increasing by 495%. This tracks trading volumes on Ethereum's largest decentralized trading platforms, such as Uniswap, SushiSwap, and Curve.

· BTC on Ethereum increased 133% from 138,190 to 321,730. This represents bitcoins tokenized in various forms such as wBTC, renBTC and tBTC, with approximately 1.69% of the BTC supply now on Ethereum.

· OpenSea sales increased 50078% from $71.57 million to $35.91 billion. This tracks sales in the network's largest NFT market.

· TVL of the second floor increased from $5.01 million to $5.55 billion, an increase of 11,002%. This measures the value of bridging from Etheruem to L2 extension solutions such as Optimistic and ZK Rollups.

Ecosystem highlights

Metacosmic explosion

Part of the fourth quarter was defined by the explosion of consciousness and speculation surrounding the metadverse.

在 Facebook 宣布在 2021 年 10 月将其品牌重塑为 "Meta "的催化下，第四季度与元宇宙相关的资产价格出现了抛物线式的上涨。这包括用于管理虚拟世界和交易的 Token ，如 Decentraland（MANA）和 The Sandbox（SAND），它们的 Token 在第四季度分别升值 337% 和 635%。此外，这两个项目在其世界中经历了破纪录的土地销售，包括前者的 243 万美元和后者的 430 万美元的购买。

MVI 是由 Index Coop 创建的一篮子元宇宙 Token ，从 10 月 1 日到 2021 年 12 月 31 日，在该季度结束时上涨了 88%，而在 11 月底达到了 197% 的峰值。

The frenzy surrounding crypto-native projects has overshadowed the news that traditional companies like Microsoft are planning to dabble in the metasverse. This sets the stage for a final showdown between Web2's metasexes and Web3's open, user-owned metasexes.

Rise of DeFi 2.0

Another major theme in q4 was the rise of "DeFi 2.0 ".

这是一个用来广泛描述下一代协议和基元的术语，其中许多项目强调提高资本效率、流动性和资金管理，并通过部署到多个链和第二层来追求积极的增长战略。伴随着他们日益创新的设计，这些协议中有许多是完全草根的，没有从该领域的传统风险资本家那里筹集任何资金。这些项目推动了 Token 设计的发展，以减少释放并推动对其本地资产的需求。

In Q4, several notable DeFi 2.0 examples grabbed the spotlight. This includes the rise of Frog Nation, whose ecosystem of agreements has amassed more than $7 billion. Olympus DAO, which has over $203 million of value-free at risk in its Treasury and launched many forks during the "OHM Fork SZN ", and Fei Protocol and Rari Capital merged into TribeDAO.

future

Fiscal year 2022 will be a pivotal year for Ethereum.

At the protocol level, Ethereum is expected to undergo the most significant network upgrade in its history in the form of a "merger," which is expected to be completed in q2 / Q3. This would include Ethereum replacing its proof-of-work (PoW) consensus mechanism with proof-of-stake (PoS), which would allow the network to drastically reduce its energy consumption, and the release Of ETH, which is needed to secure the network. In addition, the merger would pave the way for sharding, which would make it easier for Ethereum to scale and realize its ambition to become a modular blockchain.

Despite the merger, Ethereum will face some significant headwinds this year. This is mainly in the form of expansion, as Gas fees have driven all but the wealthiest users out of the market, and there is also fierce competition from other ecosystems such as Solana, Terra, Cosmos, Avalanche and Fantom. Ethereum badly needs a solution of its own if it hopes to maintain and expand its market share in the future. Thankfully, help in the form of L2, such as Optimism, Arbitrum, zkSync and StarkNet, may be on the way.

随着这些扩展解决方案中的每一个都可能推出 Token 和激励计划，以太坊很有可能能够利用这一势头，并利用这种新发现的能力来推动增长。