Ethereum Long-Term Investors Should Note ThisAugust 5, 2022
More than 44 million contracts have got deployed on the Ethereum blockchain since 2016. The numbers have been increasing steadily ever since.
Huge Contributions to Exchanges and DApps
Most users would think that every smart contract has contributed significantly to DApps and exchange management. But things have been quite different from the perspective of the public.
An engineer from Electric Capital shared a startling revelation. He said of those 44 million smart contracts that have gone live, just 15 million of them have been copied. The quest now is; what does this information have to do with Ethereum and how has it fared?
The information was powered by Insight Flow, a blockchain data analytic tool. It states that the remaining contracts have not become totally useless. 50% of the contracts, that is 22 million, were useful in helping users save some gas.
Furthermore, 10% of the contracts were used as gas tokens. They contributed to the storage and provision of cheap gas fees. They were also deployed as self-destruct entities that helped the Ethereum Virtual Machine’s operation structure.
Much more, about 0.1 and 0.5 percent of the live smart contracts were used to process various NFT transactions as well as DApp integration compatibility. MakerDAO, Compound, and AAVE are some of the known beneficiaries of this.
ERCs and the Contract’s Promises
The report also has it that ENS’s ecosystem was a significant part of those Ethereum contracts. The ENS ecosystem hosts domains. The engineer’s revelation also revealed that almost 150,000 of the live smart contracts were involved in registering the domain as it was earlier employed.
But later updates have now stopped the usage of contracts on the ENS domain. NFTs almost didn’t have an effect on the contracts. It might be a piece of surprising information but it looks like there is no place for ERC-20 assets as well as the ERC-721 standard.
In spite of this disclosure, Ethereum’s blockchain has not stopped contributing significantly to the cryptocurrency ecosystem. As of the time of this report, ETH trades above $1600, although it fell by 3.56% in the past 24 hours.
According to CryptoQuant’s report, trading volumes dropped by 19.73% in the same amount of time. The actual figure now stands at $15.45 billion. A lot of Ethereum enthusiasts might want to feel what the live contract has to offer, especially as the proof-of-stake draws nearer.
The market’s anticipation might be linked to news that millions of contracts aiding gas fees. It also solves the scalability problems Ethereum seeks to solve.