According to Odaily, Galaxy Digital has released a research report examining the effects of the Cancun upgrade over the past 150 days on Ethereum and Layer2 solutions. The report highlights several key findings regarding revenue, ETH supply burn, Layer2 profitability, operational costs, and transaction activity.
The report indicates that Ethereum's revenue and ETH supply burn have significantly decreased. Total revenue is 69% lower than the average value 150 days before the upgrade, while ETH burn has dropped by 84% compared to the same period. This decline in revenue and burn rate suggests a notable impact on Ethereum's economic model post-upgrade.
Layer2 solutions have seen an improvement in profitability. Optimism-type Layer2 solutions have increased their profit margins from 22.65% to 92.3%, while ZK-type Layer2 solutions have seen their profit margins rise from 27.27% to 66.7%. This increase in profitability indicates that Layer2 solutions are becoming more efficient and cost-effective.
Operational costs for Layer2 solutions have also decreased significantly. The average daily operational cost has dropped from $1.07 million to $556,400. This reduction in costs suggests that Layer2 solutions are becoming more sustainable and less expensive to operate, which could encourage further adoption and development.
Additionally, the report notes a significant increase in transaction activity and failure rates, which may be attributed to an increase in bot activity. This rise in activity and failures highlights the challenges and complexities associated with managing and scaling blockchain networks post-upgrade.
Overall, the Galaxy Digital report provides valuable insights into the impact of the Cancun upgrade on Ethereum and Layer2 solutions, highlighting both the challenges and opportunities that have emerged over the past 150 days.
