Journalist
Posted:
- The Ethereum protocol layer receives a significant portion of FriendTech revenue.
- Why the protocol layer’s ability to tap into WEB3’s value underlines ETH’s long-term potential.
You may have heard the phrase, “the crypto market is still in its early stages.” But have you ever wondered how successful Ethereum is? [ETH] could be when the market fully realizes its potential?
Is your portfolio green? Check out the Ethereum profit calculator
Ethereum was still focused on the long-term goal of mass adoption. Achieving this goal could generate robust growth from a revenue perspective. The reason why there are such high expectations for Ethereum is because layer 1 networks were built to secure the value in WEB3. A deviation from the WEB2 approach that mainly adds value to the application layer.
To demonstrate how Ethereum’s protocol layer benefits, the WEB3 Academy conducted an analysis of how the blockchain benefits from Base and FriendTech. The latter is a WEB3 social application that is among the fastest growing projects and operates on the Base network. However, the latter relies on Ethereum to process transactions.
According to WEB3 Academy’s FriendTech revenue distribution breakdown, Ethereum receives a substantial amount.
How FriendTech’s $148 million volume and 4.1 million transactions benefited an entire ecosystem. 🌐
Onchain Value Accrual: THE most important concept in web3, which no one is talking about.
Bookmark this tweet and come back to it, because this is the most important lesson we will learn… pic.twitter.com/eQGKKrBm7B
— Web3 Academy 🟣 (@web3academy_) September 14, 2023
The same analysis suggested that Ethereum could experience exponential dApp growth over the next decade. If so, Ethereum holders and stakers will stand to reap the benefits over time. In other words, ETH’s long-term prospects look promising, especially if it achieves mass adoption.
Review of key Ethereum growth metrics
Unsurprisingly, the supply of ETH at top addresses has grown steadily over the past twelve months. In fact, it’s now at its highest point yet this year. In contrast, network growth slowed largely due to overall short-term market headwinds. The growth rate of the Ethereum network was at the lowest level in the past twelve months at the time of writing.
Source: Santiment
Please note that Ethereum network growth is dependent on prevailing market conditions. It is often high during highly volatile market conditions, especially during bullish periods that also tend to attract more projects.
How much is 1,10,100 ETHs worth today?
Speaking of projects, a growing number of dApps should theoretically generate a higher amount of compensation over time, assuming all factors are held constant. However, it is often not linear growth as fees are affected by high and low fluctuations in network activity.
For example, Ethereum had the highest costs of the past twelve months in May. The daily fees generated at the May highs amounted to approximately 16,438 ETH, a stark contrast to the 2462 ETH fees achieved in the last 24 hours.
Source: Glassnode