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

The future of Ethereum rests on this gross-looking chart.

🧵 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.

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.

1/7 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]

2/7

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.

1/7 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.

2/7

. @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)

1/7 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

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__xyz 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__xyz

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 Active addresses/users on L2 only:

@arbitrum averaging more than Ethereum now.

@base in the number 2 spot.

Data: @tokenterminal

Every qtr I spend a week writing The Ethereum Investment Framework while combing through hundreds of KPIs throughout the Ethereum Ecosystem.

10 insights from the Q1 update which was published yesterday.

Shout out to @artemis__xyz for supplying the data.

A 🧵 Newer blockchains may be stealing some mind share from Ethereum, but in terms of where the value still sits, the King still rules:

- 5x higher TVL than the second-largest L1
- 10x higher TVL than #3