Ethereum Network Revenue Dropped 33.3% in Q2: Did DeFi Fare Better?

Audy Castañeda
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Ethereum Network Revenue Dropped 33.3% in Q2: Did DeFi Fare Better?

Ethereum network revenue plummeted in Q2 2023, due to a shrinking DeFi market. Ethereum’s average daily active addresses decreased by 6%, and its inflation rate decreased by 213%, from 0.71% to -0.8%. Ethereum co-founder Vitalik Buterin proposed a method to simplify cryptocurrency wallets.

Ethereum network revenue fell 33.3% year-on-year during Q2 2023. Bankless disclosed the figure in the report, which also shows a decline in average daily active addresses.

A Bankless report shows that Ethereum network revenue fell 33.3% in the second quarter of the year. The value fell from $1.27 billion to $847 million.

Ethereum Network Income Affected

The most significant statistic in the report is the fact that network revenue fell 33.3% compared to Q2 2022. Network revenue is the total value of transaction fees that users pay to Ethereum validators, including any corresponding fees that are burned.

The second quarter was a lean period for the DeFi market, which likely contributed to the decline in revenue for the network.

Another notable statistical data is the 6% drop in average daily active addresses on the network. The Ethereum inflation rate also decreased by 213%, from 0.71% to -0.8% on average. This is the growth in the supply of ETH.

It may not have been the strongest quarter for Ethereum, but the network is still the undisputed champion of DeFi. It has shown resilience in what has been a difficult year.

DeFi Sector Increased its Dominance from 23% to 32% in Q2 2023

In a report published by the DappRadar portal, the decentralized finance sector is shown to have increased its dominance in the second quarter of 2023, going from 23% to 32% dominance in the cryptographic market.

The report credits this growth to a resurgence in memecoins, as well as “airdrop hunters.” The Total Value Locked in decentralized finance has decreased by 7.1% compared to the previous quarter, reaching 77.6 billion dollars, according to the data included in the report.

In this dominance of DeFi in the ecosystem, the participation of the Ethereum chain stands out. Despite this dominance, the numbers also highlight that there was a decline of 2%, going from 55.8 billion dollars in the first quarter, to a drop to 54.5 billion dollars in the second quarter.

Ethereum Monthly Burn Exceeds 146,000 ETH

Ethereum has surpassed 146,000 ETH in its average monthly burn, with a total of 3,472,331 ETH burned so far. The total amounts to 6,500 million dollars. This is a considerable sum since the mechanism was introduced with the EIP-1559.

EIP-1559 arrived with the London hard fork in August 2021 and is responsible for turning Ethereum into a deflationary network. The vast majority of burns come from typical ETH transfers, NFT activity on major platforms like OpenSea, and high-volume DEXs.

Ethereum co-founder Vitalik Buterin also recently proposed a method to make cryptocurrency wallets easy to use. This method is similar to using an email id. Buterin made the remarks at the Ethereum Community Conference (ETHCC) in Paris.

The method in question is called “modern account abstraction”, which Buterin describes as “really elegant”. It could possibly allow wallet recovery to be as simple as resetting an account password. It may be a long way off, but there is no doubt that this would help Ethereum’s revenue.

By Audy Castaneda

Musk Dogecoin Lawsuit Amended to Include Insider Trading Charges

Marina Meza
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Musk Dogecoin Lawsuit Amended to Include Insider Trading Charges

The complaint was filed in early June this year in the Southern District of New York and says that Musk took various steps to violate financial laws in the US.

Last year, a lawsuit was filed against South African businessman and billionaire Elon Musk. The lawsuit alleges that Musk took steps to manipulate the price of Dogecoin, which he has liked and highly spoken of for some time.

The plaintiffs in the lawsuit claim to have lost millions of dollars during the 2022 bear market and blame the SpaceX founder for his alleged role in their losses.

Investors proposing a class action lawsuit accused Tesla CEO Elon Musk of deliberately increasing the price of Dogecoin by more than 36,000% in two years and then letting it crash. They included their latest allegations in a proposed third amended complaint.

In early June, US District Judge Alvin Hellerstein said he would “probably” allow the third amended lawsuit, saying the defendants would likely not be biased.

Elon Musk’s Lawsuit Changed

Apparently, the lawsuit against Musk has taken a new turn by including insider trading charges. The complaint says Musk took various steps to violate financial laws in the US The document reads as follows:

“This is a securities fraud class action lawsuit arising out of a deliberate course of carnival barking market manipulation and inside trading by the world’s richest man, Elon Musk, who hijacked an emerging pop culture phenomenon to promote himself and his enterprises, and to paddle his obscene fortune, by drawing on the fervent hopes of vulnerable Americans, including war veterans, manual workers, and the elderly.”

One piece of evidence the complaint is using against Musk is that he briefly changed the Twitter logo from its recognizable blue bird to the Dogecoin dog. Once this occurred, Doge’s price increased by as much as 30 percent in a short period, though the price dropped rapidly once the logo was changed again.

However, during the time of the switch and the subsequent price hike, Musk is accused of dumping up to $100 million on Doge, thus making a huge profit. It is also alleged that he profited from paid influencers and that his company Tesla traded in the coin and gained inside knowledge about Doge’s activity. The complaint continues with the following:

“Musk traded Dogecoin in a profitable manner through one or more domestic wallets and exchanges using prior knowledge then unknown and not disclosed to Dogecoin investors generally or publicly of his own intended movements to manipulate the market. Tesla, Inc. also traded profitably through one or more domestic wallets and exchanges during the class period, because it was advised of this information by defendant Musk.”

Did He Make People Lose Doge?

Musk has repeatedly worked to get the currency lawsuit thrown out of court, claiming that he never forced anyone to invest in cryptocurrency. The fact is that he is a Doge fanatic who has tried to talk about it whenever he could, but he hasn’t held a gun to anyone’s head and forced them to invest at the cost of their lives. The amended complaint ends with these assertions:

“In subsequent tweets, Musk, who had tens of millions of Twitter followers at the time, called himself ‘the Dogefather’ and has twittered about Dogecoin more than a hundred times since.”

By Marina Meza

Litecoin Whales’ Nonstop Hoarding  

Audy Castañeda
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Litecoin Whales’ Nonstop Hoarding  

Litecoin whales show strong LTC hoarding, as the halving event approaches.

Litecoin (LTC) whales have shown an unwavering dedication to the hoarding of this cryptocurrency, especially as the highly anticipated halving event approaches.

The halving may be favorable to Litecoin, as the block rewards for miners will be halved. This means that the production rate of the LTC coin will be reduced, a feature that is technically deflationary which, combined with increasing demand, can have a unique advantage for price.

Litecoin, like most altcoins, is charting a bull run thanks to the confluence of positive data surrounding it. The coin is up 2.19% to $93.39. At the current level, you are pushing to cut the losses accumulated over the past week.

In the last 48 hours, these whales have amassed an impressive amount of approximately 600,000 LTC. This intense activity raises a crucial question: To what extent has its hoarding influenced the volume and price trajectory of LTC in recent days?

Increase in the Number of Litecoin Holders

As these whales actively acquired LTC, a gradual increase in the number of holders was observed, as indicated by Santiment. On July 17, the total holder count stood at 8.84 million. However, so far, this figure has risen to 8.85 million. As recently as May, the total number of holders was still hovering around the 7 million mark.

A close examination of the data on the number of transactions by whales, according to Santiment, has revealed a notable increase in whale activity in recent weeks. However, the number of transactions has recently decreased to 37.

Litecoin volume did not show noticeable increases at press time, as it stood at 478 million. This suggests that the currency was not affected by the recent movements of the whales. After enduring a prolonged downtrend, Litecoin experienced a slight relief.

Its trading value at press time was around $92.6, reflecting a gain of more than 1%. This metric exceeded 100 transactions per day on certain days, standing at eight transactions, indicating a relatively low level of activity.

How the Litecoin Whales Have Moved in the Last Days

Examining closely the transaction count data for whales in Santiment has revealed a notable increase in whale activity in recent weeks. Whale Transaction Count specifically tracks transactions that exceed $100,000 and has consistently logged between 100 and 200 transactions daily.

The Litecoin whales’ activity, as well as the increase in the number of LTC holders, suggest increasing optimism in the market as the halving event approaches.

In addition to the halving event, Litecoin has been gaining traction in its role in payments, with new records and milestones to prove it. With over 170 million transactions processed on the network to date, it is one of the few protocols that has maintained 100% uptime since its inception.

Litecoin is trading at $93.01 in the green at noon as of July 19. The 70 and 200 SMAs are below the three weekly candlesticks, the RSI is up at 48 points, and the MACD fast line is just above the zero level. Medium to long-term resistance is at $114.82.

Although the intensive hoarding of LTC by the whales has not led to notable increases in Litecoin volume, it has contributed to a slight recovery in its trading value. As the cryptocurrency landscape continues to evolve, it will be interesting to see how these trends play out and what impact they will have on the future of Litecoin.

By Audy Castaneda

How Ethereum Navigates Volatility, Regulatory Fears, and More in Q2

Audy Castañeda
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How Ethereum Navigates Volatility, Regulatory Fears, and More in Q2

Ethereum grew in terms of market cap dominance despite volatility in the sector. Interest in betting increased and traders became bullish.

Ethereum is a decentralized open-source Blockchain system that includes its own cryptocurrency, Ether. ETH functions as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.

Throughout the second quarter of 2023, Ethereum [ETH] experienced significant fluctuations and high volatility. Despite these challenges, the Ethereum network showed resilience and continued to attract an influx of new users to its protocol. In particular, the platform showed substantial growth in various aspects during this period.

A Demonstration of Mastery

According to Messari data, the central issue that dominated the short-term narrative around Ethereum was regulation. The SEC’s actions against major exchanges such as Coinbase and Binance raised concerns about the classification of the assets as securities. Despite these challenges, ETH managed to increase its dominance in the market.

However, there is hope that with Markets in Crypto Assets (MiCA) in Europe, Ethereum’s market cap dominance will further increase, as adoption begins to rise.

MiCA is part of a broader EU package aimed at updating the bloc’s approach to various digital financial aspects and focuses primarily on crypto asset providers, as well as the obligations they must declare.

ETH’s strong tokenomics also played a critical role in driving its performance. Base fee burn saw a substantial 58% increase during the quarter, leading to approximately 380,000 ETH being burned.

Said mechanism helped reduce the overall supply of ETH, adding scarcity and possible upward pressure on prices. Furthermore, net ETH burned also witnessed a notable triple increase, going from around 80,000 to around 230,000.

Bet till You Make It

The rise in gasoline prices, fueled by the hype surrounding PEPE, was the driving force behind the biggest ETH burn. As a result, validators saw their real returns rise to an impressive 6.1%.

Such an increase in yields, coupled with the unlocking of staking, naturally drew more flows into staking contracts. May and June saw the highest net flows ever, at 3 million and 1.9 million ETH respectively, further contributing to growth and stake share in the Ethereum network.

In addition, the number of validators on the Ethereum network also increased. According to Staking Rewards data, the number of validators on the Ethereum network grew by 8.81% over the past month.

Due to these factors, traders were feeling optimistic about the future of ETH. This was indicated by the decline in the put-to-call ratio for ETH, which recently showed that the number of calls exceeded the number of puts.

Ether Price Analysis

The long tail of the Ether candle ETH from July 17-18 shows that the bulls are buying the dips to the 50-day SMA of $1,853.

This suggests that the ETH/USDT pair could remain stuck between the 50-day SMA and $2,000 for a while longer. One small bright spot for the bulls is that the 20-day EMA ($1,898) is gradually sloping higher and the RSI is in the positive territory. If the buyers catapult the price above $2,000, the pair could start the next leg higher towards $2,141.

Ethereum (ETH) is trading today, July 20, at US$1,916.91, according to the Live Coin Watch portal. This price positions it at 1.0% compared to its value 24 hours ago and 1.02% compared to the same day last week. The current domain (market price) of the token is US$227,920,688,802.

By Audy Castaneda

The Evolution of Games in the Cryptocurrency Era

Audy Castañeda
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The Evolution of Games in the Cryptocurrency Era

The truth behind the glitzy façade of crypto gambling is presented, as well as its intricacies.

Gambling, an honorable human pastime, has found a game changer: cryptocurrency. This perfect blend of finance and entertainment has turned traditional gambling on its head, offering players a new, exciting and potentially profitable way to gamble.

Crypto gambling has emerged from the shadows of the digital world, revealing itself as a notable competitor in the gambling sphere. Its debut was not without controversy, but its remarkable growth cannot be ignored.

Below are some key aspects that set crypto bedding apart:

Decentralization: The digital currency is powered by Blockchain technology, which allows for decentralized financing. This means that no intermediaries, such as banks or payment processors, interfere with transactions being made.

Anonymity: Cryptocurrencies offer a degree of privacy unmatched by traditional financial systems.

Speed ​​and profitability: Transactions are faster and often cheaper, mainly due to the absence of intermediaries.

Greater accessibility: With coins, anyone with an Internet connection can participate, bypassing the regional restrictions of traditional online gaming.

Crypto betting might seem complex at first glance, but once one scratches below the surface, the process is very simple. Getting involved in crypto gambling can be as simple as understanding the key components of Blockchain technology and having a deep understanding of the mechanics of cryptocurrency.

Navigating the Risks and Rewards of Crypto Betting

Just like any other form of gambling, crypto betting is a mix of risk and reward. However, the high volatility of digital assets introduces an additional layer of uncertainty that can be exciting or scary, depending on your perspective.

While it is true that drastic changes in value can increase profits exponentially, they can just as easily wipe them out. This feature of coins makes the gambling landscape much more dynamic than traditional gaming, where the main risk comes from the microgaming progressive slot itself, not the currency used to play it.

At the same time, crypto betting offers potential benefits that traditional gambling cannot match. The speed and efficiency of transactions, along with the potential for massive gains due to BTC’s volatility, can make it an attractive option for the modern player.

Trends in Crypto Betting

Crypto betting is more than placing bets using Bitcoin or Ethereum. It’s an ever-evolving landscape that reflects broader trends in the world of cryptocurrencies. From the rise of altcoins to the explosion of NFTs, these trends can directly affect the gaming scene.

The growing popularity of altcoins such as Dogecoin and Litecoin has meant that they are increasingly accepted by gambling platforms, expanding the options for players. Similarly, the buzz around NFTs has spread to the world of gambling, with some platforms offering NFT prizes or integrating them into games.

Future Prospects for Crypto Betting

The future of crypto betting looks bright, as the industry is growing at an unprecedented rate. With advances in Blockchain technology, increased regulatory clarity, and the proliferation of cryptocurrency-enabled gaming platforms, explosive growth in the sector can be expected.

However, as with any expanding industry, there will be bumps along the way. Regulatory challenges, security concerns, and market volatility remain major hurdles. Ultimately, it is the ability of crypto betting to adapt and evolve that will determine its future.

By Audy Castaneda

Chinese Police Seize $160 Million in Crypto in Crackdown on Cross-Border Gambling

Audy Castañeda
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Chinese Police Seize $160 Million in Crypto in Crackdown on Cross-Border Gambling

Qiu Moumou, the alleged mastermind, and prime suspect, is now facing trial after two years of trial by the authorities. Gambling has been illegal in the People’s Republic of China since 1949.

Chinese authorities have announced the first cryptocurrency confiscation case in the country through a court ruling.

According to a report, an investigation by Chinese police has uncovered a large-scale cross-border online gambling case with a turnover of 400 billion yuan (approximately $56 billion). A cryptocurrency was found to be at the center of the operation, facilitating illicit activities.

The police stated the following:

“According to preliminary investigation on this online gambling case, the amount involved reached 4000 billion, there were more than five people involved, the server was installed overseas, the method of funds laundering used the most difficult virtual currency and the backbone case may be abroad.”

This development marks a milestone in China’s continued efforts to crack down on illicit activities involving cryptocurrencies. The government has been progressively tightening regulations on cryptocurrency trading since 2017.

A Famous Cryptocurrency Case in China

The case initially came to light on July 28, 2021, when Xiong Xong, a resident of Shayang County in Hubei Province, reported his involvement in mobile phone gambling to the Jishan Police Station.

The simple case of mobile gaming took an ominous turn when Xiong observed his colleagues raking in substantial sums of money. The compelling lure of wealth slowly transformed the mobile gaming experience into something sinister.

After downloading the game app, Xiong experienced initial success and earned thousands of yuan. However, his luck worsened as he increased his bets, ultimately leading to losses that exceeded 100,000 yuan ($14,000).

As a result of a thorough investigation, the Chinese authorities allegedly uncovered a large-scale international criminal network that used cryptocurrency to obfuscate its illicit activities. Local reports suggest that this use of cryptocurrency made it extremely difficult for authorities to trace the origin of the funds and understand the full scope of the operation.

Subsequently, a significant event led to the arrest of people in multiple provinces, dismantling 14 suspected criminal gangs. More than 130 people were detained and authorities confiscated computers, mobile phones and bank cards as part of the operation. Local police have described it as the first virtual currency recovery case in the country.

Qiu Moumou, the alleged mastermind, and prime suspect, is now facing trial after a two-year effort by the authorities.

China Banned All Cryptocurrency Transactions in 2021

Gambling has been illegal in the PRC since 1949. In September 2021, China officially declared all cryptocurrency trading illegal. Despite the initial ban on cryptocurrency trading in 2019, trading activities persisted through currency exchanges.

Following the mainland ban, Hong Kong, a special administrative region of China, took a different approach by taking steps to establish itself as a hub for digital assets.

To date, investors and companies have cautiously approached entry into the city region. The Chinese authorities are well known for taking sudden crackdowns on industries the Communist Party dislikes. However, this ban has not deterred millions of Chinese from continuing to interact with cryptocurrencies.

By Audy Castaneda

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