Ethereum’s network revenue down 44% Q/Q in Q1 2022 – Bankless report

Bankless team claims it remains bullish on Ethereum.

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According to the report, Ethereum’s network revenue, which measures the value of the transaction fees, dropped 44% from $4.34b in Q4 2021 to $2.4b in Q1 2022. However, that’s still a 46% yearly increase. The average gas fee is down by more than 88%, from $26.89 in Q4 2021 to $2.98 in Q1 2022.

The amount of ETH staked rose by an astounding 111%, from 5.2 million to 10.9 million. Bankless estimates that approximately 9.2% of the total Ether supply is staked in anticipation of Ethereum’s PoW to PoS transition. The inflation rate, which tracks the change in the ETH supply, decreased 54% from 1.10% to 0.51% during Q1. Bankless expects that after “The Merge,” Ethereum will become deflationary with a projected issuance of -2.1%, meaning more ETH will be burned than created.