Ethereum Network Revenue Falls By $630 Million Indicating a 33.4% Drop In Q2
Hard times are currently hitting crypto traders as Ethereum network revenue dropped from $1.91 billion in Q1 2022 to $1.28 billion in Q2 2022 signaling a revenue drop of $630 million and a 33.4 percent drop.
According to a crypto analysis by Bankless Times, the crypto market scene was characterized by Bearish conditions in Q2 2022 and this gave rise to a decline in Ethereum’s Network Revenue, which plunged by 33.4% with about $630 million cut off from the market.
The drop in network revenue also negatively affected the average daily users as active addresses also dropped from 593,404 to 471,447, during the same period under review indicating a 20.6% decline.
The reason for the drop in active address was given as the result of a decrease in speculative interest among investors owing to the quarter's negative backdrop.
The Ethereum network, however, continues to be one of the most active and popular blockchain networks despite the drop in revenue. The network's high user rating is due to its high usage by many Decentralized Applications (dApps) while many enterprises also use it for enterprise blockchain solutions
Further explanations by Bankless Times indicates that the number of active daily addresses does not generally give an insight into how the crypto market is doing as it is just one metric.
Speaking on the revenue drop, Jonathan Merry, Bankless Times CEO explained that “This drop is due to a weak crypto market, the prevailing bearish conditions have watered interest from crypto speculators. Consequently, transaction activity has gone down and with it the network’s revenue.”
The report added that there was a possibility that the active daily address can be declining while other metrics such as transaction volume were increasing which in turn means the decline should not be interpreted as a sign that the Ethereum network is losing momentum or usage.[NewsNaira]