Chart of the Week - Ethereum Revenue Growth Trend

• An overall uptrend was observed in the crypto market. An increase in transactions has pushed up fees generated on the Ethereum network by ~55% MoM.
• On an absolute scale, however, the data shows that the market tumbled in December, falling far short of the November result.
• As of February 2, 2023, Bitcoin continues to set a bullish tone on the market, reclaiming the $24,000 mark after the FOMC meeting.

Weekly On-chain Statistics

Ethereum: Network Value to Metcalfe (NVM)

• Ethereum (ETH) has seen its value rise from $1,196 to its current value of $1,668—a near 40% jump, sparking questions over whether ETH is overvalued.
• The Network Value to Metcalfe (NVM), a value evaluation index that compares the number of active users to the market capitalization, suggests that ETH is trading at a fair value. Check ou the NVM chart at Xangle Analytics.

Ethereum: Price to Sales Ratio (PSR)

• The Price to Sales Ratio (PSR) of ETH is also exhibiting a strong growth trajectory, indicative of the growth of its market capitalization outstripping the growth of its sales.
• The PSR of ETH is largely influenced by transaction fees generated on the Ethereum network. Currently, the transaction fees on Ethereum sit at a similar level as last January. Therefore, gains in market capitalization are likely the reason for the uptrending price-to-sales ratio.

Uniswap Wants a Piece of BNB Chain

• Plasma Labs passed the Temperature Check for the deployment of Uniswap V3 on the BNB Chain.
• Plasma Labs has cited a sustained growth in BNB Chain’s user base as the reason Uniswap should be deployed on the BNB Chain. The daily averages of new addresses for Ethereum and BNB Chain over the past 180 days were approximately 105,000 and 382,000, respectively, indicating that the number of new users entering the Binance Chain is more than three times that of Ethereum.
• Plasma Labs claims that its total liquidity could reach half of the current total value locked (TVL) in PancakeSwap if Uniswap expands to the Binance Chain. PancakeSwap's TVL currently sits at around $2.5 billion and constitutes a substantial portion of the Binance Chain's overall TVL of $6 billion.

• When examining the trend in transactions, there appears to be little difference between Ethereum and Binance Chain starting from July of 2022.
• The BNB Chain saw a substantial increase in transaction numbers in November 2022, which is thought to be due to the bankruptcy of its competitor FTX. The BNB Chain appears to have benefited from the fallout.

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