Analytex, an advanced analytics ecosystem for DeFi 2.0 and beyond, revealed that Ethereum, the second-largest cryptocurrency by market capitalization, has demonstrated growth in its on-chain activity, as per the February 8th report.
The data shows an increase in Ethereum’s average gas price, and a boost in smart contract usage, despite a decline in the average number of transactions and unique wallets.
The report found that the average gas price, calculated in gwei, increased by 29.27% in January 2023 compared to the previous year. This hike was attributed to a rise in user activity, which was reflected in the increase from 19.2 gwei to 24.82 gwei from December 2022 to January 2023.
Meanwhile, the average number of unique active ETH wallets per day decreased by 10% to 387,475, the lowest in six months. On the other hand, the number of unique active smart contracts increased by 6.74%.
Ethereum’s Stake in DeFi Grows
Daily ETH transaction data showed a slight decrease of 0.8% from December to January. Nevertheless, the Ethereum block statistics indicated stability, with little to no change in the average number of blocks mined each day and an increase in the total block size per month.
Analytex suggests that these contrasting data metrics signify an “increased interest of both current blockchain users and smart contract developers.”
Ethereum’s influence in the decentralized finance (DeFi) sector has also seen a significant rise, with a 26% increase in total value locked across different staking pools in January 2023, according to a report by DappRadar.
The market hit $74.6 billion worth of staked assets, and Lido Finance dethroned Maker DAO as the largest DeFi protocol due to the popularity of its liquid staking derivative protocols.
Ethereum’s upcoming Shanghai upgrade has also driven staking in DeFi, as it is expected to open withdrawals from ETH staking contracts.
Ethereum Shines with NFT Boost
Ethereum is also experiencing a surge in popularity, fueled by a rise in non-fungible tokens (NFT) due to the launch of a mini-game by Yuga Labs, according to a report by Bernstein.
Daily fees on the Ethereum blockchain have skyrocketed, more than doubling since the start of the year to reach $4 million to $6 million, while ETH has gained a substantial 35% in value.
Despite negative ether inflation, analysts believe that both ETH and Bitcoin remain solid investments, with the next big catalyst for Ethereum being the Shanghai upgrade in mid-March.
This event will allow for withdrawals of staked ether, though some caution may be warranted due to potential supply concerns from unstaked ether.
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