Ethereum network revenue lost over 33% in Q2 amid lean DeFi market

The latest Bankless report indicates that Ethereum network revenue plummeted to $847 million from $1.27 billion during Q2 2023. The figure represented a notable 33.3% decline. Also, the second-largest blockchain by market cap recorded plunged daily active users.

Ethereum network revenue plunges

Ethereum network struggled during the second quarter, according to income figures. Network revenues represent all transaction fees that users pay to Ether validators and the portion of the charges removed from circulation (burned).

Meanwhile, a lean phase in the decentralized finance (DeFi) sector in the second quarter likely contributed to Ethereum’s revenue dip. A lean period is when there isn’t enough of something.

The DeFi marketplace deteriorated in Q2 2023, with unwelcoming developments ruining sentiments. For instance, hack incidents increased by 63% during the quarter, leading to $228M in losses. Ether-based protocols account for more than 90% of the total DeFi total value locked (TVL).

7/7 ⬇️ Securing DeFi is crucial as hack incidents soared 63% in Q2 2023, resulting in $228 million losses across 79 hacks. We must prioritize security to protect against these mounting threats. 🔒💪 #DeFiSecurity #ProtectYourAssets

— Altduv (@Altduv) July 20, 2023

Ethereum’s average daily users decline by 6%

Ethereum saw active daily addresses plunging by 6% to 444,419 from 471,447. The indicator measures wallet addresses that have transacted on the Ether blockchain per day during the quarter. Similar to revenue, this metric hasn’t plummeted further, considering the ongoing bear market.

Ethereum’s Vitalik Buterin plans to revolutionize crypto wallets

Invezz.com reported that the Ethereum founder Vitalik Buterin proposed to make cryptocurrency wallets easy to use (read more here). He highlighted how account abstraction can alleviate challenges that the Ether network faces during the Ethereum Community Conference in Paris.

Account abstraction will make managing wallets as seamless as handling emails. Experts believe the development will help Ethereum attract billions of users. Such a development would bolster the platform’s revenue.

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