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  On January 4, 2020, Ethereum finally broke through the $1,000 mark again after three years. In the following week, it topped $1,300, approaching its previous high.  At the same time, Gas Price (Gwei) has also risen in recent days, once reaching 500 (the highest exceeded 600), setting a new high since the UNI airdrop. Behind the simultaneous increase in secondary market prices and on-chain transaction fees, many indicators of Ethereum have actually reached historical highs. As a side confirmation of the development of the Ethereum network, it may help us to further understand the actual situation of Ethereum up to now, and the distance it may reach in the future. 01 10 Ethereum indicators are at all-time highs The 10 items of data in this part were published by Twitter user @0x_Lucas and translated and compiled by the author of this article. Screenshot of the original tweet:  1. The network utilization rate is full, and the "global settlement layer" has taken a further step. Network utilization can be said to be one of the most basic indicators to measure the operating status of any public chain. It means everyone's demand for Ethereum block space, that is, whether users are willing to use ETH as the settlement layer. This indicator has risen steadily since 2020, reaching a historical peak. The most important thing is to rely on DeFi - whether it is loans or transactions, whether it is Aave or Uniswap, it is inseparable from the demand for the Ethereum network. It has obviously become the largest "settlement layer" in the entire blockchain network, and is one step closer to the goal of the "global settlement layer".  2. The hash rate reaches a new high, and Ethereum miners are still “full of money”” Although ETH is about to transition to the PoS network, the hash rate of the Ethereum network has continued to rise since 2020, reaching a new high of more than 270TH/S, indicating miners' confidence in Ethereum mining. Of course, even in the context of a new high hash rate, miners are still making a lot of money: at present, the average income of each block of Ethereum is about 8 ETH, and the income of some blocks exceeds 10 ETH, of which the system block reward is 2 ETH, and the remaining 6 ETH are all handling fee income, which means that the handling fee income exceeds the block reward by 3 times. All this shows that transactions on the Ethereum chain are active (miners also have to thank this wave of DeFi).  3. Derivatives began to prosper, and the total open interest in options hit a new high. CME is rumored to launch futures contracts for ETH this year, and the total amount of open interest in Ethereum options currently on the market has gradually increased, exceeding US$1.5 billion. The continued growth of transaction categories and transaction volume, on the one hand, illustrates the market's optimism and strong willingness to participate in the subsequent development of Ethereum. On the other hand, it also provides miners and others with more tools to hedge against volatility risks, which will help the market to further grow steadily.  4. The number of DeFi users is rising steadily Everyone is saying that there will be no obvious incremental new users from outside the circle entering the market in 2020, but in fact, if we look at the growth curve of DeFi users, we may find that we have not even completed "self-education within the circle". At least many of my friends around me have been completely exposed in this wave of DeFi craze - even though they are considered "veteran currency users", they do not have clear basic concepts such as GAS, have not used MetaMask, do not know how to operate liquidity mining, etc. Therefore, this wave of DeFi craze has actually awakened this part of the "sleeping circle memory" and become real "blockchain users". Currently, the number of DeFi users has exceeded 1 million, and the next goal is 10 million!  5. TVL (Total Locked Volume) has reached a historical high At the beginning of 2020, TVL was only about US$600 million. But today, one year later, the value locked in DeFi exceeds $24 billion, an increase of more than 30 times. Looking at this parabolic trend, the sky is the end point.  6. DEX trading volume ushered in explosive growth DEXs such as Uniswap, Curve, and Balancer have undoubtedly given us unexpected surprises in 2020, especially under the leadership of Uniswap, which has become a "phenomenal opponent" to challenge CEX.” According to the data, the current DEX market share has risen to 15% of CEX, and the monthly trading volume has soared to more than 25 billion US dollars. The future is also worth looking forward to.  7. Ethereum accelerates the siphoning of Bitcoin At present, the number of Bitcoins on Ethereum has exceeded 150,000, with a value of more than 4.5 billion US dollars, accounting for 0.7% of the total BTC. As previously mentioned in "Accelerating the siphoning of Bitcoin, Ethereum is becoming an "absolute black hole" for crypto assets", the speed of inflow into Ethereum far exceeds the speed of mining output during the same period (about 6,000/week), which is astonishing. Ethereum has gradually evolved into an absolute black hole siphoning Bitcoin. If this trend continues, the transfer of 1% of BTC to ETH will happen soon, and the rate at which Ethereum cannibalize other cryptoassets should also accelerate.  8. Grayscale’s ETH trust holdings hit new highs Just as Ethereum is becoming a black hole for crypto assets like Bitcoin, Grayscale’s Ethereum Trust is becoming a black hole for ETH. As of the beginning of 2021, Grayscale's trust products already hold approximately 2.5% of the total BTC supply and 2.3% of the ETH supply (approximately 2.5 million ETH), which further strengthens the scarcity of Ethereum.  9. Ethereum + stable currency, one company dominates Stablecoins should be one of the most rapidly developing projects in cryptocurrencies over the past two years, and Ethereum has become the dominant player in stablecoins: The current total amount of stablecoins on Ethereum has exceeded 20 billion US dollars, which is nearly 7 times higher than the 3 billion US dollars in January last year, and the types include anchored legal currency, mortgage issuance, algorithm stability, etc., and it is already a dominant player.  10. ETH in the deposit contract goes all the way up After the launch of the deposit contract, 1 billion US dollars of ETH have been deposited, accounting for approximately 1% of all ETH. This also shows from the side that the market is optimistic about the next stage of the development of Ethereum, and this is just the beginning.  02 “Ethereum under the "Matthew Effect", what's the next stop?  Source: cointelegraph On January 5, 2020, Buterin published the latest relevant article about Rollup, "Incomplete Guide to Rollups", clearly stating that "Rollups are a powerful Layer 2 expansion paradigm and are expected to become the key expansion solution for Ethereum and the cornerstone of Ethereum's expansion in the short to medium term." In fact, since last year, with the active promotion of Buterin, Rollup has basically assumed the mission of undertaking the expansion of Ethereum in the short to medium term. Even when Rollup has not yet become popular and Ethereum is so congested, there are more and more people and applications on Ethereum, forming a typical "Matthew Effect": The popularity of DeFi and its related ecology remains high, but those "Ethereum killers" who once promoted differentiated competition such as low fees seem extremely lonely. Moreover, Uniswap and Synthetix, the current leaders in DeFi, are also about to complete their own new products based on Rollup. Especially Synthetix, which has recently made a splash in the secondary market, has recently completed the key step of its OP test network. Driven by leading DeFi products such as Synthetix, Layer 2 will form a fixed industry standard this year and clear the expansion pressure for the further development of Ethereum. To be honest, the distance between Ethereum and other public chains is actually getting farther and farther, and this trend is still accelerating visibly. Unless other public chains find a new narrative method, they will no longer be able to challenge the established fact that Ethereum is dominant. At the same time, on January 4, the OCC (Currency Council, a branch of the U.S. Department of the Treasury, responsible for supervising and guiding the U.S. banking system) has "allowed U.S. banks to use public blockchains and U.S. dollar stablecoins as the settlement infrastructure of the U.S. financial system." Looking at today's public chains, whether it is the use of stablecoins on the chain or the application ecological level, Ethereum should be one of the most qualified players - the "global settlement layer" is being realized step by step. The next stop is the sea of stars? Are you optimistic about the future development of Ethereum? Do you currently hold Ethereum? Welcome to the message area to write down your opinions. Previous article: Even if you don’t make money in the bear market, Bitcoin is soaring in the bull market but you still don’t make money! What's the problem? ▎Recommended reading
——End—— 『Statement: This article is the independent opinion of the author and does not represent the position of vernacular blockchain. This content is only for popular science learning and communication among crypto enthusiasts. It does not constitute investment opinions or suggestions. Please treat it rationally, establish correct concepts, and improve risk awareness. The copyright and final interpretation rights of the article belong to Vernacular Blockchain. 』  Dear, it is said that 99.9% of interesting people have clicked "Looking"👇 |
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