Blockchain technology ethereum yielded a negative return of 10.9% in the first quarter of CY2022, as per a CoinGecko report. While insights from the report showed that ethereum prices fell over 35% to a low of $2,407, it still managed to close the quarter at $3,823.
Data from the report showed that ethereum trading volumes increased between the range of $28 and $29 billion, in January 2022. It also witnessed a surge by $30 billion in trading volume, after Russia's invasion of Ukraine on February 24, 2022. The other factors which contributed towards this surge were ethereum's merge with the Kiln testnet, which allowed the blockchain technology to be supported by an advanced version of its software, and after the newly proposed ethereum token ERC-4626 came into existence.
Data showed that despite the dip in ethereum prices, it still managed a positive staking return at 25% for the first quarter of 2022. Reportedly, a strength of 11 million had staked with the ethereum technology for the first quarter of 2022, which represented nine percent of the total ethereum supply. Kraken and Lido managed to maintain their positions as the top two ethereum staking services, by yielding returns at 9.4% and 8.8% respectively. It was further reported that both the ethereum services ushered a combined dominance by 18% of the cryptocurrency markets, in terms of other ethereum staking services.
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The merge between ethereum and the Kiln testnet allowed the ethereum technology to adopt the proof-of-stake mechanism instead of the proof-of-work mechanism, for making ethereum mining unprofitable and disincentivising miners. As per the report, the merge was estimated to reduce daily ethereum emissions from 12,000 to 1,280.
For FY23, the report stated that shared coins would be brought into existence for spitting transactions across the Ethereum network bandwidth. It further stated that decentralised apps (dApp) would be developed for allowing smart contract functions across the merged network.
(With insights from the CoinGecko Report, 2022)