Ethereum is the 2nd largest blockchain by market cap behind Bitcoin, and thus the largest smart contract blockchain, so it’s no surprise that Ethereum’s blockchain supports the largest portion of assets locked in DeFi protocols, with about $27b of assets locked. By @ultimate.app.
The article then points at few statistics and observations:
- Ethereum is a model for fair token distribution
- Ethereum is a model for open-source, community driven development
- Now energy efficient via Proof of Stake, Ethereum is the most economically secure blockchain
- The investment case for ETH is linked to the Ethereum blockchain’s usage
- L2 activity has surpassed L1 activity
- Challenges remain around scalability, decentralization, MEV
While Ethereum has made significant progress, challenges remain. The historical lack of staking withdrawals catalyzed the growth of liquid staking, where “winner take all” effects have resulted in almost 30% of all staked ETH within the Lido protocol - not an ideal scenario for decentralization. Ethereum’s blockchain is home to the majority of the DeFi market’s TVL, $100b of stablecoins, and produces tens of millions of dollars in transaction fees every month. For more stats and charts follow the link to the full article. Interesting read!
[Read More]