Protocols on Ethereum show high activity, but what does this mean for ETH

  • Layer 2 protocols and solutions on Ethereum continue to improve
  • However, Ethereum’s state declines as network growth and speed decline

Ethereum is still recovering from its post-merger blues, meanwhile the protocols on the Ethereum network have seen growth. According to a crypto-analytics firm MessariGraph Protocol, a query network protocol for Ethereumhas made considerable progress in terms of activity.

Curators, delegators, and indexers have increased on the network, indicating greater potential for scaling.

Lily Ethereum [ETH] Price prediction 2022-2023

But it’s not just the protocols that have increased in terms of activity, several L2 chains have also made their presence felt on the Ethereum network. Consider thishe amount of L2 gas spent in November was 97 billion units, at the time of writing, it has increased by 170% in the last year.

L2s like Optimism and Arbitrum played a major role in the gas spent. One of the reasons for this was that the number of transactions performed on these two L2 chains had increase. The number of daily transactions on Optimism was 366k after growth 50% in the last month, according to data provided by Dunes.

Source: Dune Analysis

Even though the L2s on the Ethereum network worked fine, Ethereum network stakers failed to generate revenue.

From the image below, it can be seen that the overall revenue generated by stakers has dropped significantly by 25% in the last 30 days. Despite this, validators on Ethereum have continued to grow and have increased by 5.67% over the past month, according to data provided by Staking Rewards.

Source: Staking Rewards

Still a long way to go for Ethereum

Unfortunately, EthereumThe future looked bleak. As can be seen in the image below, the platformNetwork growth has declined significantly over the past week. Thus, implying that the number new addresses that transferred ETH for the first time had declined.

Ethereum’s speed has also depreciated, indicating that the number of times Ethereum has been traded between addresses has decreased.

Source: Santiment

It remains to be seen if Ethereum’s growing ecosystem could improve on its current state.

At the time of writing, ETH was trading at $1,174.92. Although its price decreased by 3.12% in last 24 hourshis volume appreciated by 35.69% over the same period

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