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Ethereum Monthly Analysis – June 2022

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Ethereum is off to a good start this month, market data and latest updates from the development team suggest. In recent days, Ethereum developers and other key figures from the Ethereum foundation shared even positive details regarding the state of matters of the upcoming Merge. Meanwhile, in the market, Ether has advanced uphill for the last four days, climbing above $1,250.

The ETH/USD pair breached through the resistance at $1,200 and was trading up 7.60% in the past 24 hours at writing. The promising recovery comes on the back of a heavy plunge in the second half of the month that pushed the pair below $1,000. Speaking performance across June, here’s a breakdown of Ethereum’s on-chain figures during this period.

Market Metrics

The general downturn in the crypto market in May spilled into June as the native token’s price crashed, revisiting late 2020 levels. Ethereum (ETH) shed off a significant chunk of gains accrued throughout 2021 with the average price of $897.50 on June 19 being the lowest for the month.

Market capital

Ether traded at $1948 on the first day of the month, translating to a market capital of $235.77 billion. This figure largely declined throughout the month, but the decrease was steeper between June 10 and 19. The value of Ether’s circulating supply crashed by approximately half during this period, reaching $108.78 billion on the latter date. The figure marked the lowest Ether’s market capital has been so far this year. Towards the end of the month, ETH price trended upwards, which saw the market capital recover as high as $152.86 billion. Another brief lapse in the latter days of the month erased some gains, with the eventual figure on July 30 being $123.32 billion.

Ether’s supply growth

Accounting for Ether, including daily block rewards, uncle rewards, uncle inclusion rewards, burnt tokens, and staked tokens, the token supply at the start of the month stood at 119,228,183.01 ETH. This supply figure expectedly grew across June, reaching 119,503,109.12 ETH on June 30. This steady swell across the month represented an increase of 274,926.11 tokens. The month-over-month changes show a decline, given that the supply grew by over 290,000 ETH tokens in May.

Blockchain and Network Metrics

Daily transactions

The figures for daily transactions seen across June remained unchanged, reigning above 1 million for most of the month. Though steadily, these transactions declined and dipped below the mark in the latter days of the month.

The highest number of daily transactions 1,110,579 was observed on June 17. June’s peak was lower than May’s, which also qualified as the second-highest daily count in transactions recorded on any day this year – 1,342,405 total transactions on May 13. The lowest daily transaction figure during the month, 919,721 transactions, was recorded on June 26.

Unique addresses

The aggregate of unique addresses rose from 197,696,702 addresses at the start to 199,706,412 at the end of the month. This accounted for an increase of 2,009,710 new addresses in June.

Daily active addresses

The number of daily active addresses often shows the intensity of activity on the Ethereum network. In June, Ethereum advanced a long-running declining pattern in daily active addresses. Considering a narrowed down time range, the numbers have been digging lower, reaching below 400,000 active addresses from in excess of 600,000 addresses in mid-May.

The daily active addresses peaked at 486,231 on June 17 from 444,442 on June 1. A subsequent decline saw this figure hit a monthly minimum of 365,795 active addresses on June 26, concurrent with the lowest count of unique addresses.

Average transaction fee (USD)

Though the cost of completing Ethereum transactions has declined significantly this year, it remains high relative to competing blockchain platforms that rely on more efficient consensus mechanisms. Further, highly-billed events such as NFT mints are notorious for causing a surge in average transaction fees on Ethereum.

The bearish conditions in the markets reduced the desirability of many altcoins, including Ethereum, whose gas fees was constrained in a tight range for most of the month. The average transaction fee on Ethereum in June remained below $10 for all days of the month bar two instances; June 8 and June 9, which saw $11.6 and $11.42 in average fees, respectively. Indicative of the declining trend, the lowest transaction cost of $3.02 was observed on June 20.

Average network hash rate

The average network hash rate, a measure of the Ethereum network’s processing power, has a history of month-over-month increases. In June, this trend was reversed, with Ethereum’s computational power declining on the days leading to the end of the month.

The hash rate stood at 1,063,426.7 GH/s on June 1, reaching the highest average of 1,081,027 GH/s on June 3. This computational power figure stayed under 1 million for nearly half the month, regressing to 907,696.4 GH/s on June 30.

DeFi Performance

Market share

Ethereum’s DeFi ecosystem mirrored the poor performance of its native crypto token on exchanges. Following a 10% market share increase in May, Ethereum unsurprisingly retained its position as the leading DeFi platform in June. Its market dominance remained fairly constant, only seeing a slight decline towards the end of the month. Second-placed BSC and third-placed Tron ranked as the only other chains with a market share of more than 5%.

Total value locked (TVL)

The total value locked on Ethereum decreased in June despite a consistent market share. The TVL struck its lowest of $44.32 billion on June 19 as most protocols shed significant TVL. MakerDAO’s dominance grew from 14% at the end of May to 16.55% though its TVL contracted during this period. UniSwap, Lido, AAVE, and Curv, which completed the top five protocols on Ethereum at the time, also returned negative 30-day changes.

To learn more about Ethereum visit our Investing in Ethereum guide.

Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.

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