AMBCrypto - 9/15/2023 8:32:27 PM - GMT (+0 )
- Ethereum protocol layer receives a substantial amount of FriendTech revenue.
- Why the protocol layer’s ability to tap into WEB3 value underscores 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 [ETH] could be when the market fully realizes its potential?
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Ethereum was still focused on the long-term goal of mass adoption. Achieving this goal could generate robust growth from a revenue point of view. The reason why there are such high expectations for Ethereum is because layer 1 networks are built to secure value in WEB3. A departure from the WEB2 approach which mainly provides value to the application layer.
To demonstrate how Ethereum’s protocol layer has been benefitting, the WEB3 Academy conducted an analysis of how the blockchain is benefiting from Base and FriendTech. The latter is a WEB3 social application that is among the fastest growing projects and it operates on the Base network. However, the latter relies on Ethereum to process transactions.
According to WEB3 Academy’s breakdown of FriendTech’s revenue sharing, Ethereum receives a substantial amount.
How FriendTech’s $148 Million Volume & 4.1 Million Transactions Benefitted an Entire Ecosystem. 🌐
Onchain Value Accrual: THE MOST important concept in web3, that nobody is talking about.
Bookmark this tweet & come back to it because this is the most important lesson we will… pic.twitter.com/eQGKKrBm7B
— Web3 Academy 🟣 (@web3academy_) September 14, 2023
The same analysis suggested that Ethereum may experience exponential dApp growth in the next 10 years. If that is the case, Ethereum holders and stakers stand to reap the benefits over time. In other words, ETH’s long-term prospects look quite promising especially if it achieves mass adoption.Assessing key Ethereum growth metrics
Unsurprisingly, the supply of ETH held by top addresses has been growing steadily over the last 12 months. In fact, it is now at its highest point so far this year. In contrast, network growth slowed down largely reflecting the overall short-term headwinds across the market. The Ethereum network growth figure, at the time of writing, was at its lowest level in the last 12 months.
Note that Ethereum’s network growth is subject to prevailing market conditions. It is often high during highly volatile market conditions, especially during bullish periods which also tend to attract more projects.
How many are 1,10,100 ETHs worth today
Speaking of projects, a growing number of dApps should in theory provide a higher amount of fees over time assuming all factors are held constant. However, it is often not linear growth since fees are influenced by high and low swings in network activity.
For example, Ethereum had its highest fees in May within the last 12 months. The daily fees generated at the May highs were around 16,438 ETH, a stark contrast to the 2462 ETH fees achieved in the last 24 hours.