Pro
State of Ethereum Q1 2024
Key Insights
- The approval of the spot Bitcoin ETFs and strong inflows into it raised market sentiment in Q1 2024. All eyes now turn to the SEC’s decision on a spot ETH ETF, expected later in Q2 2024.
- ETH participated in the bull market, with its price surging by 60% YTD. Its relative performance among the top chains was middling as it underperformed Dogecoin, Bitcoin, and Solana but outperformed Polkadot, Avalanche, and Cardano.
- Ethereum’s fundamental metrics showed strong growth. Active addresses and transactions activity returned to highs not seen since the last bull market in 2022.
- Ethereum’s Dencun upgrade went live with EIP-4844. Rollup transaction fees fell sharply, and L2 transaction activity grew 40% sequentially. The strong growth in rollup activity bodes well for Ethereum’s scaling vision.
- Total value locked (TVL) on Ethereum grew by 75% in Q1, led by EigenLayer.
Primer
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Kunal previously worked in equity research and now considers himself a financial analyst in crypto. He specializes in valuation and bottom-up analysis for Layer-1 and DeFi protocols because he has yet to learn of a way to value NFTs.
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