Ethereum on steroids – Ethereum is the second largest blockchain in terms of marketcap in the crypto ecosystem. Moreover, it continues to dominate decentralized finance with a masterful hand. This dominance seems to continue with a high-flying first quarter, where growth records are multiplying.
ETHEREUM LAYER 2S TAKE IT ALL
As everyone knows, the Ethereum network is facing major congestion problems. Fortunately, second layer solutions (layer 2), aimed at deporting part of the transactions outside the main chain, are multiplying.
Moreover, they are experiencing phenomenal growth. Thus, over the past year, second layer solutions have grown by 964% . Indeed, the TVL of these solutions has increased from $686 million in the first quarter of 2021 to $7.3 billion in the first quarter of 2022.
A figure revised downwards since April, with nearly 6 billion dollars of TVL at the time of writing these lines.
ETHEREUM: STILL QUEEN OF DEFI
At the same time, Ethereum remains the dominant blockchain in the DeFi ecosystem . In the space of a year, DeFi on Ethereum has grown by 82% from 49 to 89 billion dollars deposited through its protocols.
A value also revised downwards during the month of April, finally reaching 79 billion dollars at the time of this article.
For their part, the decentralized exchanges of Ethereum have also exploded all records. Thus, Ethereum DEX spot volume has increased by 667% since the first quarter of 2021, from $513.4 billion to $3.9 trillion. Perpetual volume meanwhile increased by 2,704% from $7.4 billion to $209 billion.
In the lead, we find the giants Uniswap and dYdX which record the most substantial volumes.
ETHEREUM AND NFT: A GREAT LOVE STORY
Obviously, it is impossible to take stock of the evolution of Ethereum without mentioning the phenomenon of the year 2021: NFTs .
Indeed, the trading volume of NFTs exploded between the first quarter of 2021 and that of 2022. This ecosystem recorded a growth of 19,000% , going from a volume of 606 million to more than 116 billion dollars. .
The overwhelming majority of this volume was recorded by Ethereum’s two main NFT platforms, namely giant Opensea and underdog Looks Rare.
These performances could well continue to evolve positively with the approach, then following the deployment of The Merge. Indeed, the Ethereum network is about to transition to a proof of stake consensus mode. In theory, this transition should take place before the end of 2022 .
