In the first three months of 2021, with the 90-day statistics highlighting that the value of digital assets has climbed by nearly 80%, the cryptocurrency Ethereum shines. On Monday, Qianzhou Investment Analyst James Wang released a detailed summary focusing on the first quarter financial performance of the Ethereum project. Wang’s comprehensive Ethereum analysis revealed countless data points that highlight the achievements of blockchain in 2021.
Analyst releases Ethereum statistics on blockchain financial results for the first quarter
Ethereum has always been a force that cannot be ignored this year. In the past few weeks, crypto assets have been taking away BTC’s market dominance. There are many reasons why ETH has been rising. Fundstrat Global Advisors and other organizations believe that Ethereum can reach $10,000.Spencer Noon, a proponent and investor of crypto assets, has Tweet He thinks the reason why ETH can enter the five-figure field. Market performance is one thing, but the Ethereum blockchain does much more than gaining a higher market share.
May 17, 2021, analyst at Ark Invest king, Published a report titled “Ethereum Announces 2021 First Quarter Results” on substack.com. The document focuses on the financial performance of the blockchain from the first quarter of 2021 to March 31, 2021. Wang’s report shows that the total accumulation of Ethereum’s network revenue or transaction fees jumped 200 times in the first quarter to reach $1.7 billion. This indicator is in sharp contrast with the network revenue of $8 million in the first quarter of 2020. Wang said, “Transaction volume increased 20-fold in the first quarter of 2021, reaching US$713 billion, compared with US$33 billion in the first quarter of 2020.”
In addition, the daily active addresses of the blockchain increased by 71% to 607,000, as there were only 364,000 in the first quarter of 2020. In terms of equity, in a plan called in December 2020, more than 3.6 million ETH is worth more than 11 billion U.S. dollars. Place a bet today. Wang’s report further pointed out that compared with the data of the first quarter of 2020, the total value (TVL) locked in decentralized finance (defi) data in the first quarter of 2021 has increased by 64 times, reaching US$52 billion. Since then, the total defi has increased by another $20 billion.
A report recently released by Glassnode called “Defi Uncovered: The State of Defi” also emphasized that defi has seen tremendous growth this year. Glassnode detailed on May 12 that within eight months, defi “has attracted more than $100B into the smart contract.”
Ethereum’s decentralized transaction volume, stable currency, and packaged Bitcoin products
A former Ark Invest analyst’s Ethereum research also discussed the volume of transactions on decentralized exchanges (dex) and how this metric has increased substantially. Data from Dune Analytics shows that the Ethereum-based dex transaction volume was very large in May. Dex indicators show that among 16 dex platforms, the global trade volume exceeds 6 billion U.S. dollars. In the past 7 days, transactions on dex platforms such as Uniswap, Sushiswap, 0x Native, Curve and Balancer have exceeded 35 billion U.S. dollars. Wang’s report emphasized that in terms of packaged Bitcoin tokens and stablecoins, Ethereum has also seen substantial growth in these areas.
The researcher said: “Stablecoin trading volume increased by 100% in the first quarter of 2021 to reach 40 billion U.S. dollars, and increased by 20 billion U.S. dollars in the first quarter of 2020.” Wang’s report added: Compared with 1.8k BTC in the first quarter, the volume of packaged BTC in the first quarter of 2021 has increased 95 times to 170k BTC. About 1% of the bitcoin supply is packaged as ERC-20 tokens and traded on Ethereum ,” Wang’s report added.
Q1’s research also involved four Canadian ETH exchange-traded funds, Meitu’s purchase of ETH on its balance sheet, and the network’s “two-pronged approach to network expansion” and other topics. Wang was also surprised by the EIP1559 improvements that will be deployed in the near future. The report states: “2021 may be the most important year in the history of Ethereum.” “The two key themes in 2021 are economic security and scalability.”
Justin Drake, a researcher at the Ethereum Foundation, explained in Wang’s analysis: “People realize that Ethereum is not just money, it’s super-value money.” “Although other cryptocurrencies may boast There is a supply cap, but Ethereum will soon have no supply bottom line.”
What do you think of Ethereum’s Q1 performance and Wang’s comprehensive understanding of the financial performance reported by the blockchain? Let us know your thoughts on this topic in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, James Wang’s report, Glassnode defi report, Twitter,
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