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Michael Nadeau | The DeFi Report Profile picture
@JustDeauIt
Jul 17, 2024 • 16 tweets • 5 min read • Read on X
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Every quarter I spend a few days combing through onchain data to compile Ethereum's financial performance so that you don't have to.

A 🧵on the L2 sector performance in Q2:

Active users: L2s now have 6x that of the L1 (up from 3x last qtr)

Data: @tokenterminal Image
Active addresses/users on L2 only:

@arbitrum averaging more than Ethereum now.

@base in the number 2 spot.

Data: @tokenterminal Image
Fees: ETH vs L2s

ETH Fees dropped $679m in Q2 due to EIP4844 👀

Activity on L2s increased, but with fees dropping due to tech upgrades, sequencer revenues were flat for the qtr.

Data: @tokenterminal Image
Fees - L2s only.

@base dominating the field here. Note that @arbitrum was #1 in tx, but #6 in fees -- due to cost/tx significantly lower than Base during the qtr.

Data: @tokenterminal Image
Fees - L2s as a % of Ethereum: 13% in Q2

This is down from a peak of nearly 20% in Q4 of last year. Largely due to EIP4844.

Data: @tokenterminal Image
The combined daily cost of revenue for the top L2s:

Fell off a cliff.

Once again, EIP4844 telling the story in Q2.

Data: @tokenterminal Image
Onchain margins:

Improved dramatically in Q2.

@Optimism was 99%.

@base = 97% (does not include payments to OP)

@arbitrum 92%

@blast 66% (improved to 96% upon implementation of blobs in late May)

The catalyst? EIP4844

Data: @tokenterminal Image
Transactions: ETH vs L2s

L2s are now nearly 9x that of ETH L1 (up from 4x last qtr).

Data: @tokenterminal Image
Transactions: L2s only

@base leading the pack with @arbitrum in the #2 spot.

Data: @tokenterminal Image
Cost per transaction:

@arbitrum was cheapest in Q2 at just over 2 cents/tx.

Data: @tokenterminal Image
Total Value Locked:

@arbitrum leading the pack once again with over $3.3b as of 6/30. Notable to see @blast in the #2 spot ahead of @base

Data: @tokenterminal Image
Contracts deployed: ETH vs L2s

L2s combined for 10x that of ETH L1 during Q2

Data: @tokenterminal Image
Contracts deployed, L2s only:

@base dominating the field.

Data: @tokenterminal Image
Token holders:

@arbitrum and @Optimism leading the pack with approximately 1.2m holders.

For reference, ETH L1 had over 123m as of 6/30.

Data: @tokenterminal Image
Valuation: FD Market cap to TVL

@arbitrum providing the best value in the market. Image
Want more?

If you'd like to access all 77 charts covering ETH's Q2 performance, including:

- Operating performance
- Token economics
- Stablecoins
- RWAs
- DeFi
- Onchain P&L
- Valuation
- Correlations
- ETH vs SOL

access here:

thedefireport.io/ethereum-inves…

• • •

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More from @JustDeauIt

Michael Nadeau | The DeFi Report Profile picture
Aug 13
Everyone talks about ETH’s price… but the real story is where it lives.

Once you see how ETH is actually distributed — in ETFs, staking contracts, L2s, wrapped tokens, CEXs, and more — you understand:

1. Who really holds the keys
2. Capital flows and how much is actually liquid
3. Where the next supply shock could come from

Let’s map it out. 🧵👇
ETH in ETFs:

- Currently control 5% of the supply
- AUM up 80% over the last 3 months
- Blackrock & Fidelity have 73% of the AUM Image
ETH Staked:

- Currently control 29.7% of the supply
- Up 5% over the last 3 months
- @LidoFinance share down 3.5% over the last 3 months
- Binance now #2, up 23% over the same period

With ETH Treasury firms dumping ETH into staking, we expect this # to rise in the coming months.Image
Read 9 tweets
Michael Nadeau | The DeFi Report Profile picture
Apr 7
The future of Ethereum rests on this gross-looking chart.

🧵 Image
Why are "blobs" (data availability submissions) from L2s the future of Ethereum?

Because Ethereum disrupted itself via the L2 roadmap & EIP4844.

As a result, base fees are down 99% from their peak in late '21 and 92% from the *bottom* of the last bear market in '22 (prior to EIP4844).

We should expect this trend to continue as L2s scale.Image
Priority Fees are also at their lowest level over the last 4 years as more execution activity moves to the L2s post EIP4844.

Again, we should expect this trend to continue as more execution activity moves to L2s. Image
Read 6 tweets
Michael Nadeau | The DeFi Report Profile picture
Nov 5, 2024
Ethereum's Roadmap is under fire.

But have we truly grasped the *economic* ripples that every proposal sets in motion?

Each pivot, upgrade, and idea impacts more than just the blockchain itself.

It shapes the experiences, challenges, and fortunes of:

1. Developers
2. Users
3. Validators
4. Service Providers
5. And Investors

That’s why I created a dashboard on @tokenterminal breaking it all down.

Past. Present. And Future.

A 🧵with some insights from the dashboard + a link at the end for those looking to go deeper 👇

Starting with EIP1559 in August of '21:

$12.4b has been “burned” or bought back since it’s implementation.

1/7Image
Shifting to ETH 2.0 and the move to Proof of Stake in Sept. '22:

Annual issuance dropped 88% overnight.

Impact on Validators:

1. Now compensated with tips from users (fees paid in excess of the base fee for block inclusion) + new issuance.

2. Compensation from new issuance was reduced by 88% overnight (from roughly 13.5k ETH/day to 1.7k ETH/day).

3. Overhead costs (energy) reduced by 99.9%.

4. Compensation from fees + new issuance is now determined by the validator's portion of ETH staked pro-rata to the amount of ETH staked on the network.

[see dashboard for impact on ETH holders]

2/7Image
Moving on to The Shapella Upgrade (staking withdrawals) in April of '23:

Validators increased 58% in the first 6 months post-Shapella.

Impact:

1. Validators: decrease in yield
2. Tokenholders: drop in yield can impact demand for ETH
3. Network security: more validators = more secure network.
4. Applications: @LidoFinance was the largest beneficiary.

3/7Image
Read 7 tweets
Michael Nadeau | The DeFi Report Profile picture
Oct 31, 2024
So many bad takes on the timeline regarding Ethereum vs Solana right now.

It's about time we cut through the noise with a data-driven approach.

That's why I created an absolute banger of a dashboard comparing the economics of the two networks across:

1. Go-To-Market Strategy
2. Value Accrual
3. Total Economic Value
4. Cost to Produce $1 Fee Revenue
5. Network Fundamentals
6. Performance & Valuation

It's both quantitative and qualitative.

A quick 🧵with some takeaways + a link to the dashboard via @tokenterminal at the end 👇

Takeaway #1: It's now about 50% cheaper to transact on Arbitrum than Solana. In fact, it's cheaper to transact on half of the top L2s.

1/7Image
Shifting to Total Network Fees:

Takeaways:

1. Ethereum + the top L2s have done nearly $20b in all-time fees

2. 97.5% has come from the L1 ($479m from the top L2s)

3. Solana has produced $495m in all-time fees, with 87% of that coming this year.

4. The trend is the friend of Solana, which has produced 41% of Ethereum's top-line network fees over the last 90 days (not including MEV)

5. Why am I including L2s? Because they create demand for ETH + settle transactions down to the L1. We'll stop including them if those two economic ties are severed.

2/7Image
Next is Protocol Revenue (burned tokens, which accrue value to non-stakers):

Takeaways:

1. 64% of Ethereum's all-time transaction fees ($12.4b) have been burned, accruing value to ETH tokenholders.

2. 50% of Solana's all-time transaction fees ($247m) have been burned (2% of Ethereum).

3. L2s have no value accrual mechanism for tokenholders today.

3/7Image
Read 7 tweets
Michael Nadeau | The DeFi Report Profile picture
Sep 6, 2024
. @Uniswap did 81% of @coinbase trading volume in Q2.

It did 65% of @RobinhoodApp's volume.

Meanwhile, Uniswap has just 3% of Coinbase's workforce and 4% of Robinhoods.

A 🧵on @Uniswap's market share within crypto across 6 different KPIs using @tokenterminal new dashboard feature.

___

Starting with Fees - Uniswap currently controls a 55% market share. Notably, the protocol generated $45m for Uniswap Labs via it's interface fee over the last 6 months.

That's 9% of what was paid to Uniswap LPs ($503m) over the same period.

*please note all data excludes Solana DEXs (coming soon)

1/7Image
In terms of active users, @Uniswap currently has a 60% market share — twice as high as one year ago.

Uniswap had over 9 million active users in August. For reference, Coinbase has 8 million monthly active users. Robinhood has 13.7m.

Data: @tokenterminal

2/7 Image
In terms of trading volume, Uniswap currently has a 42% market share across crypto DEXs (excludes Solana)

In August the DEX did $52b (down from $90b in March).

Again, Uniswap did 81% of Coinbase's volume in Q2 and 65% of Robinhood's volume.

Data: @tokenterminal

3/7 Image
Read 7 tweets
Michael Nadeau | The DeFi Report Profile picture
Jul 25, 2024
1/8 A quick 🧵on stablecoin activity on @ethereum & L2s

Starting with all-time transfer volume:

@circle the clear leader with over $10t of all-time volume on the L1. USDC volume was up 14% on the qtr and 37% on the year.

USDT saw zero growth in Q2 and was up 37% on the year.

DAI was the big winner in Q2 in terms of volume -- with 39% market share and $843b of value transferred.

Data: @artemis__xyzImage
2/8 Shifting to volume on L2s:

@circle dominating all time volume on L2s as well with 3.8x the volume of USDT.

USDC volumes were up 41% in Q1 and 127% on the year.

USDT saw 12% growth in Q2 and 74% for the year at the L2 level.

*DAI volume was down 30% on the qtr and 25% on the year on L2s.

Data: @artemis__xyzImage
3/8 Moving on to supply on ETH L1:

USDT leading the pack here with $52b as of 6/30. Balances grew just 5% in Q2 and 33% on the year.

USDC is #2 with $24b. Balances on L1 dropped in Q2 by 11% and 5% for the year.

The fastest growing stablecoin on ETH L1? @PayPal's PYUSD at 124% for the qtr, but with a balance of just $423m as of 6/30.

*Binance's BUSD has basically left the Ethereum ecosystem.

Data: @artemis__xyzImage
Read 8 tweets

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