The evolution of Ethereum: decentralised exchanges and the rotation of DeFi to NFTs

The evolution of Ethereum: decentralised exchanges and the rotation of DeFi to NFTs
Ethereum is best described as a decentralised computer for the world. But what can you actually do with Ethereum and which applications are currently popular? We will answer these questions by analysing the gas consumption, the transaction costs on the platform.


What does gas consumption mean?




To make a transaction on Ethereum or to use a decentralised application, you need ethers. You pay these ethers to miners to record your transaction in the blockchain. In essence, it is a transaction fee, but in the industry we call it 'gas', because it acts as Ethereum's petrol.

So the distribution of gas consumption tells us which applications are currently popular and what is available on Ethereum. In reality, of course, Ethereum is a little more complex than how it is described here, but in essence it comes down to this explanation. Now let's look at which applications are currently consuming the most gas.


The rotation from DeFi to NFTs


For a long time, DeFi applications like the 0x protocol and MakerDao dominated Ethereum's gas consumption. What we see today is that more and more capital is flowing from the DeFi world towards NFTs. OpenSea in particular has become a major player in 2021 and 2022. We can also clearly see the impressive rise and dominance of Uniswap in the chart below.

Uniswap is a decentralised exchange platform that clearly beats the other decentralised exchanges at the moment. Looking at it by category, in 2022 decentralised exchanges (38.4 per cent) and NFT marketplaces are the big winners when it comes to gas consumption on Ethereum.

After those two categories, NFT collections and stablecoins also emerge as popular applications. Next, we see that the share of gas consumption in each category is decreasing significantly. Loan protocols, stablecoins and others are still relatively small on Ethereum. However, in theory they have the potential to blow up considerably.


The rise of stablecoins


During the DeFi summer of 2021, Tether's gas reached an all-time high on Ethereum with 2,140 ether. Circle's USD Coin also peaked at that time. However, the all-time high for USDC followed only later in 2021 when ether itself reached its provisional all-time high in November.

The fact that Tether and USDC are important projects for Ethereum is evidenced by the huge amounts of stablecoins that they hold on Ethereum. Tether has about EUR 32 billion worth of assets living on Ethereum and USDC almost EUR 45 billion. This makes these two projects real giants on the Ethereum blockchain.


The largest smart contracts on Ethereum


If we look at the biggest smart contracts on Ethereum, Uniswap is without a doubt the big winner. Uniswap is currently responsible for 37.2 percent of the total gas consumption on Ethereum. Uniswap is closely followed by OpenSea (8.8 percent) and Tether (6.7 percent).

It is notable that Tether is responsible for a larger gas consumption than USDC, while the latter is currently larger on Ethereum. We hope these charts and information give you a better idea of what is currently going on on Ethereum. At the end of the day, it is all about what you can do on and with Ethereum.
https://www.indexuniverse.eu/the-evolution-of-ethereum-decentralised-exchanges-and-the-rotation-of-defi-to-nfts/

Comments

  1. Investing in Bitcoin/forex is the best investment anyone can do this year 2022, because Bitcoin, ethereum, crypto and forex investment has made a lot of people millionaire, I have witnes this and it will still rise (bull) to over $45k before the year ends. Choose Coinbloc dot us. Start up, invest and gain wisely

    ReplyDelete

Post a Comment