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This article originally appeared in Valid Points, CoinDesk’s weekly newsletter breaking down Ethereum 2.0 and its sweeping impact on crypto markets. Subscribe to Valid Points here.
October marks the beginning of the fourth quarter and perhaps an end to the crypto market’s fifth annual September Dump.
More importantly, we are excited to announce the release of CoinDesk Research’s Q3 Quarterly Review, containing data-driven analysis on Bitcoin, Ethereum, DeFi and NFTs.
While digging through the aftermath of EIP 1559, I realized that the upgrade was more multifaceted than I once understood. CoinDesk columnist Nic Carter had pointed out that EIP 1559′s design changes are “inherently political’ and that they pit blockscape consumers, token holders and miners against each other. While this could be true on a case-by-case basis, I don’t believe it captures the overall sentiment of any class of Ethereum stakeholders.
Why? The changes to the fee market and the addition of a burn mechanism have wider effects on all aspects of the user experience than what appears just on the surface. Furthermore, it is likely too early for any single participant to know how the upgrade will affect them in the long run. For example, CoinMetric’s data shows us that while miners may have lost out on a majority of transaction fees, profitability in USD has remained roughly the same.
Can the newfound scarcity narrative have a long-term positive impact on the price of ether? Should miners be upset if they generate similar revenue through block rewards alone? Again, I believe it is too early to assert any final takeaways from the upgrade, which I am most likely guilty of doing myself.
If you are interested in further analysis around EIP 1559, MEV, DeFi and more (like Bitcoin), take a look through our Quarterly Review.
The following is an overview of network activity on the Ethereum 2.0 Beacon Chain over the past week. For more information about the metrics featured in this section, check out our 101 explainer on Eth 2.0 metrics.
Disclaimer: All profits made from CoinDesk’s Eth 2.0 staking venture will be donated to a charity of the company’s choosing once transfers are enabled on the network.
Valid Points incorporates information and data about CoinDesk’s own Eth 2.0 validator in weekly analysis. All profits made from this staking venture will be donated to a charity of our choosing once transfers are enabled on the network. For a full overview of the project, check out our announcement post.
You can verify the activity of the CoinDesk Eth 2.0 validator in real time through our public validator key, which is:
0xad7fef3b2350d220de3ae360c70d7f488926b6117e5f785a8995487c46d323ddad0f574fdcc50eeefec34ed9d2039ecb.
Search for it on any Eth 2.0 block explorer site.
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Edward Oosterbaan
Edward is an analyst on the CoinDesk Research team.
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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
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