Hello readers,
I’m excited to share the Q1 issue of The Ethereum Investment Framework with you today, but first a little housekeeping:
We moved off of Substack! After a great run, we decided to move to a new home for our next growth phase. Nothing changes on your end except that I’m sure you’ll notice a new design format in your inbox today 🙂
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Ok. Back to business.
Non-zero wallet addresses (proxy for users) on Ethereum are now over 118 million (up 22% in Q1)
Fee revenue was up 155% year-over-year and 80% over Q4. The primary driver was DeFi.
In terms of token economics, the network’s average daily issuance in Q1 was 2,498 ETH. This was offset by an average of 3,665 ETH burned/day resulting in deflation of -.09% for the quarter (annualized to -.38%).
Base is beginning to emerge as the strongest L2 in the Ethereum ecosystem.
Developer activity was down significantly in Q1.
ETH available on exchanges is at its lowest level since 2016.
ETH in smart contracts is at its highest level ever.
Download the Q1 issue of The Ethereum Investment Framework.
Finally, if you’d like to receive a free excel model + a plug-in to dynamically update the data (pairs well with The Ethereum Investment Framework) respond to this email and I’ll send you the file + plug in 🙂.
Shout out to our friends at Artemis Analytics for providing the model + data!
Disclaimer: Individuals have unique circumstances, goals, and risk tolerances, so you should consult a certified investment professional and/or do your own diligence before making investment decisions. The author is not an investment advisor and may hold positions in the assets covered. Certified professionals can provide individualized investment advice tailored to your unique situation. This research report is for general educational purposes only, is not individualized, and as such should not be construed as investment advice. The content contained in the report is derived from both publicly available information as well as proprietary data sources. All information presented and sources are believed to be reliable as of the date first published. Any opinions expressed in the report are based on the information cited herein as of the date of the publication. Although The DeFi Report and the author believe the information presented is substantially accurate in all material respects and does not omit to state material facts necessary to make the statements herein not misleading, all information and materials in the report are provided on an “as is” and “as available” basis, without warranty or condition of any kind either expressed or implied.