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Research: Ethereum gas usage by stablecoins, DeFi, NFTs, and ERC -20 contracts

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Research: Ethereum gas usage by stablecoins, DeFi, NFTs, and ERC -20 contracts

Research: Ethereum gas usage by stablecoins, DeFi, NFTs, and ERC -20 contracts Samuel Wan · 7 hours ago · 3 min read

During the current bear market, gas usage has trended downwards for each of the four categories, however, ERC-20 contract gas usage appears to have bottomed.

3 min read

Updated: September 12, 2022 at 5:01 pm

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Cover art/illustration via CryptoSlate

Gas fees refer to the cost of conducting a transaction or executing a contract. For example, this could take the form of exchanging into a stablecoin or minting an NFT.

Since the summer of 2020, Ethereum gas fees took off primarily due to the explosion of DeFi use on the chain. Although network activity has tailed off significantly since May 2021, the adage of Ethereum being an expensive chain to use still prevails.

Source: messari.io

Ethereum gas fees are priced in gwei, which is a unit of measure equivalent to one billionth of one ETH. The exact gas cost depends on the network’s congestion at the time of transacting, with peak periods requiring higher gas fees to push through the transaction.

The current average gas price is $13.28, down significantly from the May 1 local top, when a transaction cost $474.57 on average.

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Stablecoin usage

Stablecoins are cryptocurrencies designed to minimize price volatility by keeping a fixed value, regardless of the price of Ethereum.

The market offers various types of stablecoins, such as asset-backed, including fiat, crypto, or precious metal assets, and algorithmic, which add to or subtract from circulating token supply to peg the price at the desired level.

The chart below accounts for over 150 stablecoins, but the most prominent are USDT, USDC, UST, BUSD, and DAI. USDT is the biggest stablecoin by volume and market cap, but in recent times, USDC has closed the gap.

Save for sporadic spikes, USDT’s gas usage has been trending downward since July 2020. Current usage is equivalent to approximate levels seen in January 2020.

USDC’s gas usage follows a slightly different pattern by raising to peak in April 21, again, except for isolated spikes higher since then, the overall trend has been downwards from that point.

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Source: Glassnode.com

DeFi usage

Decentralized finance (DeFi) is an emerging technology that cuts out banks and financial institutions, linking users directly with financial products, which typically include lending, trading, and borrowing.

Using peer-to-peer financial networks instead of going through a middleman, users have greater control over their funds and more privacy, as DeFi protocols tend not to require KYC information.

DeFi gas usage was relatively low until the summer of 2020. From July 2020, Uniswap emerged as the leading DeFi gas user, peaking around June 2021 before tapering downwards.

Other significant gas-guzzling DeFi protocols include 1inch, IDEX, and MetaMask, which have all followed similar movements to Uniswap. Since around April 2021, MetaMask increased its gas usage, managing to maintain its proportion over time.

Source: Glassnode.com

Non-fungible usage

This category includes both ERC721 and ERC1151 token standards and the gas usage from NFT marketplaces OpenSea, LooksRare, Rarible, and SuperRare.

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During the 2021 bull run, OpenSea saw the biggest spikes in gas usage from NFT demand. However, from June 2022, demand has cooled significantly yet remains somewhat elevated compared to previous years.

Source: Glassnode.com

ERC-20 usage

ERC-20 is the technical standard used for all smart contracts on the Ethereum chain for fungible token executions. The chart below excludes gas usage from stablecoin contracts.

The overall gas consumed by ERC-20 contracts peaked around November 2021, leading to a downtrend that bottomed in June 2022. Since then, ERC-20 gas usage has reverted, bucking the macro trend of the previous three categories.

There are no stand-out ERC-20 contracts that consistently topped gas usage.

Source: Glassnode.com

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$700 million

Despite The Crypto Market Downturn, DAO Treasuries Grew By $700 Million Since January

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Despite The Crypto Market Downturn, DAO Treasuries Grew By $700 Million Since January

Since January 2022, the entire crypto economy has shed $1.36 trillion in value, as the market capitalization dropped from $2.34 trillion to today’s $979 billion. While the crypto economy is down in value, trade volumes are lower, and the value locked in decentralized finance (defi) has shed billions, treasuries held by decentralized autonomous organizations (DAOs) have increased by 7.69% in value since January, as roughly $700 million was added to the projects’ caches in eight months.

DAO Treasuries Jump 7.6% Higher in USD Value, Since 2016 the Value Held by Decentralized Autonomous Organizations Grew by 6,025%

On June 10, 2022, the total amount of funds held by decentralized autonomous organization (DAO) treasuries reached the $10 billion range for the first time in history. While the crypto industry is dealing with lower prices and bearish sentiment, the value held by DAO treasuries has managed to weather the storm.

Presently, across 4,830 organizations, DAOs hold $9.8 billion, which is only $200 million less than the aggregate value held by DAOs 112 days ago. While it is $200 million less than it was three months ago, DAO treasury values have increased by $700 million since January, according to stats aggregated by deepdao.io.

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On January 22, deepdao.io metrics recorded by archive.org indicate there were 4,227 organizations at that time, and collectively, $9.1 billion was held in DAO treasuries. With $9.8 billion today, that’s a 7.69% increase in USD value held by DAO treasuries over the last 251 days.

At the time, Bitdao held $2.4 billion in its treasury and it was the largest DAO treasury in January. Uniswap was the second largest at the time, with $2.1 billion. Both Bitdao and Uniswap are still the top two DAOs in terms of treasury size, but Uniswap is now the largest.

On October 1, Uniswap has $2.8 billion, while Bitdao’s cache has shrunk to $1.3 billion from the $2.4 billion held at the beginning of the year. Bitdao’s $1.3 billion makes it the second largest DAO treasury and it’s followed by ENS which holds roughly $1.2 billion.

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251 days ago, ENS was the 14th largest and at the time, the third largest was Lido Finance. The liquid staking protocol’s DAO is now the fifth largest, with $283 million held in the Lido DAO today. The top ten DAO treasuries include Uniswap, Bitdao, ENS, Gnosis, Lido, Olympus DAO, Mango DAO, Merit Circle, Compound, and Aragon Network.

Out of the entire $9.8 billion, there are 3.9 million governance token holders, and 698,400 active voters and proposal makers. 109 DAOs hold $1 million or more, while only three DAOs have more than a billion in funds.

While Uniswap has $2.7 billion, 98.7% of the project’s treasury funds are held in uniswap (UNI) tokens, and Bitdao has a treasury comprised of a bunch of different crypto assets which include tokens like BIT, ETH, USDC, and USDT.

As the crypto economy continues to deal with tumultuous times, decentralized autonomous organization treasuries have seen steadfast growth since the start of the year. Since the first DAO was created in 2016, DAO treasuries have increased 6,025% in USD value during the last six years.

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$700 million, $9.8 billion, 2016, 2022, Aragon Network, Bitdao, Blockchain, Compound, Crypto, crypto downturn, DAO, DAO Treasuries, DAO Treasury, DAOs, decentralized autonomous organization, decentralized finance, DeFi, ENS, ETH, Gnosis, governance tokens, Lido, Mango DAO, Markets, Merit Circle, Olympus DAO, UNI, uniswap

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What do you think about the thousands of DAOs today and the $9.8 billion held by DAO treasuries? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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130000 BTC

Microstrategy Is Seeking A Full-Time Lightning Network Engineer To Build A SaaS Platform

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Microstrategy Is Seeking A Full-Time Lightning Network Engineer To Build A SaaS Platform

The mobile software, cloud-based services, and business intelligence (BI) firm Microstrategy is seeking a full-time Lightning Network software engineer, according to a job listing published this week. The developer, if hired, will build a Lightning Network-based software as a service (SaaS) platform for the company so it can be used for ecommerce use cases and connect with enterprises looking for payment solutions as well.

Microstrategy Looks to Hire Lightning Network Software Developer

After the company purchased 301 bitcoin (BTC) to hold on its balance sheet, the BI firm Microstrategy published a job listing on the web portal smartrecruiters.com. Microstrategy’s job offer is for full-time employment as a Bitcoin Lightning Software Engineer and the chosen individual will be in charge of creating a Lightning Network (LN) SaaS platform.

The job listing posted by Microstrategy this week on smartrecruiters.com.

“As a Bitcoin Lightning Software Engineer at Microstrategy, you will build a Lightning Network-based SaaS platform, providing enterprises with innovative solutions to cyber-security challenges and enabling new ecommerce use-cases,” Microstrategy executive Chen Wan explains.

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The interested person must have a Bachelor’s degree in computer science or a related field and a “Master’s degree or Ph.D. in computer science/engineering is a plus,” Wan’s job summary details. Furthermore, the candidate should have a “strong knowledge of data structures, algorithms, operating systems, distributed systems, and other fundamental computer science concepts,” the job listing adds.

The Lightning Network is a second layer (L2) scaling solution for Bitcoin that was first introduced in 2015. At the time of writing the LN capacity is 4,905.29 BTC or $95.2 million in USD value. There are 17,203 LN nodes right now and 84,928 payment channels, according to statistics on September 30. The number of LN Tor Nodes is approximately 12,305 and the percentage of LN Tor capacity is 69.3%.

Microstrategy’s engineering job says that the chosen person will build software solutions leveraging the Bitcoin (BTC) blockchain and Lightning Network, as well as “other decentralized finance (defi) technologies.” Furthermore, contributing to the Bitcoin Core codebase and other types of open source cryptocurrency coding projects is “a plus.”

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130000 BTC, 301 BTC, Balance Sheet, Bitcoin, Bitcoin (BTC), Bitcoin Core, Codebase, computer science/engineering, DeFi, Defi Apps, Developer, Engineer, job listing, lightning network, Lightning Network (LN), Lightning Network-based SaaS platform, ln, LN nodes, microstrategy, Microstrategy Lightning Network, Microstrategy’s job offer, smartrecruiters.com, Software

What do you think about Microstrategy’s job offer? Let us know what you think about this subject in the comments section below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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DeFi

Uniswap Labs rumored to be raising $100M in funding at a $1B valuation

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Uniswap Labs rumored to be raising $100M in funding at a $1B valuation

Uniswap Labs rumored to be raising $100M in funding at a $1B valuation Liam ‘Akiba’ Wright · 4 hours ago · 1 min read

Techcrunch reported that Uniswap Labs is being valued at $1B ahead of a proposed new $100M funding round

1 min read

Updated: September 30, 2022 at 2:27 pm

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Cover art/illustration via CryptoSlate

TechCrunch has released information stating that the parent company of the Uniswap DEX, Uniswap Labs, is preparing for a new $100 million funding round to expand its offering.

“Uniswap Labs is in early stages of putting together a new round…as the parent firm of the popular eponymous decentralized protocol gears up to broaden its offerings.”

The tech news outlet could not cite sources for the information but claimed that “four sources familiar with the matter” have confirmed the report. Watcher Guru on Twitter also speculated that the round would likely value the company at $1 billion.

JUST IN: Uniswap Labs to raise equity at a $1,000,000,000 valuation.

— Watcher.Guru (@WatcherGuru) September 30, 2022

Ethereum founder Vitalik Buterin also commented on the strength of the Uniswap platform, arguing that its value proposition allows for trades to be completed in 30 seconds. The comment was made about a post promoting the future popularity of app chains and the “inevitability of UNIchain.”

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I have a hard time believing this argument.

Uniswap’s main value proposition is that you can just go and get a trade done in 30 seconds without thinking about it. A uniswap chain or even rollup makes no sense in that context. A copy of uniswap on every rollup does.

— vitalik.eth (@VitalikButerin) September 30, 2022

Uniswap Labs are yet to comment publicly on the matter.

The UNI token is trading up 2.3% on the day following the news after being up 7.5% in early morning trading. The token is down 66% since the start of the year but down only 9% against Bitcoin over the same period.

Source: CryptoSlate

CryptoSlate has reached out to the Uniswap team for comment but has yet to respond immediately.

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