- Ethereum is currently the largest proof-of-stake blockchain after its Merge and has over 491,000 validators securing the network.
- The blockchain leads the way by a huge margin in NFTs, with over $23.7 billion worth of tokens minted in the network this year
- In a related development, Bloomberg’s senior macro strategist Mike McGlone says that ETH will outperform BTC in the next bull run.
Ethereum (ETH) has struggled for the most part of the year, but its fundamentals look better than its current market value.
The network’s much-anticipated Merge went live this year as it transitioned to a proof-of-stake consensus mechanism. The effects on the blockchain were huge as its energy usage was cut by 98%, with validators replacing miners.
Over 100 days since the Merge, ETH still struggles below $1,500, trading at $1,217. The network currently has over 490,000 validators with the number expected to grow in 2022. According to Beaconcha.in, an open-source Ethereum blockchain explorer, there are currently 15.7 million ETH staked on the network since September, worth around $19.2 billion.
ETH began the year with prospects of hitting new highs after ETH2, which will make the platform more efficient and faster, but the price has struggled in recent months. The asset has lost over 55% in value this year, although market experts are usually impressed by its fundamentals.
Bloomberg’s senior macro strategist, Mike McGlone, has tipped ETH to outperform its rival, Bitcoin (BTC), in the next bull run. His views on ETH are shaped by the smart contracts active on the network and wider mainstream adoption.
“Migration into the mainstream is our key takeaway and once the dust settles from some reversion in risk assets amid inflation pressures, Ethereum is more likely to resume doing what it has been—outperforming”
NFTs are still at home
The Ethereum Network is the largest smart contract-enabled network, attracting huge decentralization applications (DApps) over the years. Non-fungible tokens (NFTs) are more prominent on Ethereum, with the blockchain playing host to top NFT projects, including CryptoPunks, Axie Infinity, Decentraland, etc.
This year, NFTs worth over $23.7 billion were minted on Ethereum as it remains ahead of closest rivals Solana and Cardano. This year, Solana’s NFT mints got to an all-time high with several speculations that it may unseat Ethereum as the home of NFTs, but so far, Ethereum remains king.