Cryptocurrency research platform Messari, in new Reportevaluating Ethereum’s performance [ETH] in the third quarter of 2022. Messari, titled “The State of Ethereum in Q3 2022,” found that the blockchain saw an increase in network activity in the third quarter of the previous quarter. However, the network also saw some industry downturns and a general decline in revenue due to activity in Layer 2 scaling solutions.
In that case, has ETH witnessed some real growth?
Average daily transactions totaled 1.2 million during the quarter, according to Messari. This is a 6% increase from the second quarter of 2022. According to the report, the daily volume of ETH transfers and DeFi transactions increased by 7% and 14%, respectively, during the quarter.
Additionally, the increase in average daily transaction volume culminated in an increase in active addresses on Ethereum during the quarter. The network has 550,000 daily active addresses, up 5% from the previous quarter.
According to Messari, the general rally in active addresses on Ethereum was due to a surge in active addresses on July 27. This is also when Chandler Guo announced plans for an Ethereum PoW fork and some “maintenance activities” for Binance.
During the quarter, Messari saw an annualized growth of 0.7% or 4.2% in ETH supply. Messari further found that since the official target block difficulty for the merger was set in July, ETH calls across exchanges have steadily picked up.
Also, the ratio of calls to puts has risen. According to the report:
“The call-to-put ratio has also increased. These calls have strike prices as high as $5,000 on Sept. 30 and $2,500 on Dec. 30. Over the past few months, when these ETH was hovering around $1,500 when the bet was placed.”
recession is coming
While ETH in smart contracts has been on an uptrend since 2020, Terra’s debacle in May prevented that growth, Messari reported. As of May 9, when Terra crashed, the total percentage of ETH in smart contracts peaked at 30%. According to Messari, ETH in smart contracts has fallen since Terra crashed.
Additionally, the network saw a drop in revenue due to increased L2 activity during the quarter. As a result, total on-chain fees fell to their lowest level since 2020. According to Messari, continued declines in network fees will “directly affect staking yields in a merged world.”
Additionally, while ETH transfers and DeFi daily transactions grew during the quarter, on-chain daily NFTs and bridge transactions fell by 17% and 41%, respectively.
Ethereum recorded an average of 181,000 NFT transactions per day during the quarter and 9,000 bridge transactions during the same period.
With the merger closed, Ethereum developers are focused on building the network for wider adoption. The next upgrade of the network is the Shanghai upgrade, in which pre-consolidated ETH will be available for withdrawal, and several improvements to the network are expected.