ETH Earnings Report Q2 2025

Transcript

Hey, good morning everybody. This is Ryan Sean Adams. I'm uh today's moderator. We've got the ETH report for Q2 coming right up. This is a quarterly report. Uh this is being livereamed both on Banklist Twitter uh I should say X I suppose and also YouTube. Um, what are we doing here? Why are we doing this? So, imagine if Ethereum and ETH the asset had a quarterly report for token holders. That's what the ETH report for Q2 is. And imagine if there was a quarterly earnings call. I put that in quotes because it's a crypto network, of course, but an earnings call that was presented on the back of this report.

That's what you're listening to right now. Uh, please note that you guys can access the ETHR report for Q2 at the dfireport.io. There'll be a link in the show notes here. I'm sure you can access this. Uh, I am the moderator in today's ETH report. Also have Michael Nato who is the author of the ETH report. I'll introduce him a little bit more in a second. Uh, first a little bit of housekeeping before we begin. Um the data provided on this earnings call is compiled from public onchain data sets prepared by the D5 report and also additional partners affiliated with the D5 report. It's provided as a public service. Uh this is not a report nor affiliated with the Ethereum Foundation

at all and it is un audited but of course all these data sets are on chain. Um, the call itself, this this episode I guess maybe we'll call it, is being uh recorded right now and it'll be archived on Bankless YouTube within the next 24 hours. So, you'll be able to access it there. Also, if you're in the audience today, you can ask questions. The way to do that is if you're on X, you can just uh leave your question in the chat room. uh one of our other moderators will kind of filter some of these questions and get it to us at the end of today's call.

And also YouTube, you can leave your question in the chat room. We'll try to pick it up. I think this will run for about 45 minutes. First, we'll do some opening remarks, then we'll get into the state of the Ethereum network itself. Uh then we'll do the Q&A and close it out with some remarks. Um, I want to start by introducing Michael Nato, who is the author of the ETH report. And, uh, maybe Mike, I'll just ask you a question so you can dive right into this. Why are we doing these quarterly reports? Thanks, Ryan. Appreciate it. Excited to be here. Why are we doing the reports?

We're doing it for token holders. U, this is all about objective research and transparency into how these networks work. uh we want to make it really clear for token holders not only to understand just the network fundamentals and how value flows through these networks but also to the tokens themselves and and really that that is the theme of this report. >> All right. So um we should also say before we begin in that today's Q2 ETH report call is powered by Bit Digital. That is the ticker BTBT. It is a public company. They just went all in on Ethereum in a big way. Used to be a Bitcoin mining company. They sold their Bitcoin. They added $172 million in their raise and now they're holding

about a h 100,000 uh ether and uh they're staking it on institutional grade validators so that every blockstream's fresh reward straight to the balance sheet and to of course shareholders. Thanks to Bit Digital for that. Uh they're huge supporter of Ethereum and our work here on the ETH report. You can learn more at bitendigital.com. Okay. Mike, let's get into the opening remarks and kick this baby off. So, I got ask you uh when you look at Q2 and you look at all of the metrics coming at you, what were some of the highlights for Ethereum?

>> Yeah, so I think you know the last few years Ethereum's been in this state of transition where you know building out the the layer 2 scaling scaling users on L2 and really kind of what we've been tracking is how value is flowing through the network as a result of this. And so I think to me the big highlight of Q2 is the pet truck up upgrade that took place on May 7th and we've got some charts that we'll go through here in this call um that really highlight what's happening in the network as a result of those upgrades. So user activity on L2s is growing. Um so that's something that that we consistently see. We see costs dropping on L2s. Um and we also see this resulting in less value flowing to to eh

holders as a result of that. Um, and that's sort of to me like we're still kind of in this sort of J curve uh of kind of this transition that Ethereum is making in terms of scaling out the roadmap. Um, so we're going to go through that and people will be able to see sort of how network upgrades impact value flows throughout the network and and user activity uh throughout the network. Um, and then we're going to go through stable coins. We've got some other charts here just showing what's happening in DeFi. There's a lot of active loans uh in DeFi. things have really picked up uh in Q2. Uh but to me, the theme of this is network upgrades, user migration to L2s, and we're going to cover sort of what that means uh for ETH holders as we go through this report.

>> All right, so as I mentioned, you can access this full report, the D5 report.io. There's also Dune dashboards accompanying all of the charts that uh you're about to see if you want to go access them. I think you could just search the ETH report in Dune right now. It's probably trending up there. So, uh, if you're an analyst type, you have access to all of those as well. All right, Mike, let's get to the state of the network. Let's start with, uh, some of the operating performance metrics for the Ethereum network. And, uh, maybe we'll start with real economic value. So, what do we see in Q2? Yeah. So, as noted, users are migrating to to layer 2s and the result of the Petra upgrade um caused an 80% drop in blob fees uh for the quarter and we also saw a 67% drop in base fees, a 52% drop

in MEV, and a 24% drop in uh priority fees. For the C for the quarter, we had 144.8 uh million of REV. That was down 53% from from Q2. Um, and just so people know sort of the components of what's making the the up up the real economic value, uh, that's coming from base fees, priority fees, blob fees, uh, and I'm sorry, just yeah, just base fees, priority fees, me and blob fees. The the blob fees are making up, uh, about 1% of that right now. Ultimately, we think that's that's going to scale and we're looking for that to start to creep up towards towards 10% or so. Um the base fees are about 34% of rev in Q2. The

priority fees were 37% and ME made up 29%. Again, this this data we're focusing on just what is going to impact value acrruel to token holders uh with this data here. >> Okay. Uh and this manifests of course in real onchain yield. So what's this? >> Yeah. So we're tracking just the the amount of the payments that that go through the network that are just coming from users here, right? So we're just looking at MEV and priority fees that acrue to token holders via staking. So we're not counting any of the block builder payments that that are kind of protocol off protocol revenue that that would not make their way to token holders. Um the real onchain yield the

average APY for the quarter was was4%. Uh this is making up about 12% of the total yields that that ETH holders are getting through staking right now. Um the reason that uh I'm sorry that was down about 28% for the quarter and the reason for that is is because of the priority fees were down 24%. Uh me tips were down 52%. So so as you know the network picks up picks up steam uh more users come in there's more state contention uh for transactions. we see ME pick up, priority fees pick up, that impacts the the real yield for for token holders.

>> Keep going and talk about total onchain yield. >> Yeah. So total onchain yield, we're just adding in the issuance here. So So now you've got the the priority fees, the me plus the issuance. Issuance was down uh 5% in Q in Q2. Um the reason for that is um I'm sorry the the ETH issuance represented about 88% of the total yield. We mentioned that the priority fees me were 12%. So the rest of that is made up via the issuance. Uh issuance was down about 5% for the quarter. Again that is as resulting from the priority fees being down 24% MEB tips down 52%.

Um and issuance up 2%. So >> all right. So overall your your uh analysis for why this is happening. We've got some network update uh upgrades making blob space less expensive uh and maybe some of that is filtering into layer 2 the layer 2 ecosystem and the growth story here. So should we begin talking about that? >> That's right. I think I think we just kind of covered sort of the result of what's happening with Petra upgrade. You know fees are dropping on on L1 and and we can get into the the layer twos. I think this is where the growth uh in the ecosystem is happening and we're just kind of waiting for that to catch up in terms of value cruel to to the ETH holders. Um so yeah, so this is looking at uh combined active users on L2 which

is almost 2 million per day uh for the quarter in Q2 that was up 17% from last quarter. The primary drivers of this are UniChain. Uh so that's that's very interesting to see. Unichain launched uh pretty recently. They had 430 38% growth in terms of active users in Q2. Uh base was up 26% as well. And I think the big takeaway here is that L2s are now driving about 5x um the daily active users of L1. >> Fascinating. Okay. So some user growth on the L2 side. Uh how about transactions?

>> Transactions up as well. So again users are migrating more users more transactions on L2s. um L2 transactions. These are combined transactions for the L2s. Uh 16.9 million per day average. That's 12.7x higher than what we see on L1 today. So that continues to to scale up and grow. Um the primary drivers of the growth in in Q2 were primarily Unichain as as I mentioned before. Uh World Chain uh as well up 60% in terms of transactions. Starknet was up 50% uh in terms of transactions. Optimism was up 11%, arbitrum was up 6% and base was up 3% on the quarter.

>> How about this story of smart contracts? >> Yeah, so this is a a metric we we like to track and again all of these metrics have been curated over you know four years of us working in the indust industry um partnering with a lot of these data companies as well. Um, this is a a metric that is looking to track the diversity of kind of user activity in terms of smart contract interactions across the layer 2 ecosystem. And we can see this was this was down uh slightly in the quarter 13%. Um, but we can see that that chart is in a in a secular uptrend there. and L2 smart contracts uh in terms of their the number of interactions uh are 5.7x higher uh than what we see on L1 today. Hm. Okay. L2

onchain margin. What does what does this reflect? >> This is showing we mentioned the Petra up upgrade. To me that's the the big story of Q2. And what this is showing is you can kind of see the the the line there kind of levels off uh around May of this year. And that is the result of the Petra upgrade and how that impacted the onchain margin for for layer twos. We're just looking at base in this chart. Um, and this is essentially just measuring the user fees that that base collects uh from from their users. And then the rent that they pay down to L1 in terms of block fees and L1 payments.

And that was their just under 97% margin uh for Q2. That was up 2% uh over Q1. So that's essentially their gross profit margin just showing there are some very profitable L2 businesses in the space >> just purely purely onchain and yeah 97% margin is is is pretty good. >> That's nice. >> Yeah. >> Um how about transaction fees? What's that showing for users? >> So again, you know, this chart I think tells tells a tells an interesting story. You can see it just like fall off a cliff there um in March of last year. And that's that's related to EIP4844.

Uh that was the first introduction of of blob fees, reduced costs on L2s, also reduced value acrruel um in the interim down to L1. The average transaction fee for for L2 users, this is across all the L2s that that we track was uh about a penny and a half during during Q2. Uh that was down 50%. Uh from Q1. So significant reduction with you know we mentioned previously the transactions the users are up. So you have costs actually dropping as user activity is scaling. I think that's pretty interesting. Um and we're sort of just waiting for this activity to continue to scale to the point where we start to see it impact those metrics that we showed at the beginning of this of this call.

>> That's fascinating. It almost seems like the PCRA update is sort of a a stimulus to the L2 uh economy and you could see that in user growth and you can see that in the reduction of user fees. Uh let's switch to Ether, the asset itself, um and talk about some token economics. What's the story behind ETH issuance in Q2? >> Yeah, so you know, I think people will will notice this in the report uh that we put out. So, we think there's like a number of different ways that ETH acres value and we showed you sort of the the yields and and the actual real economic value in the beginning of this. Um there are other components here. We're going to get to the the uh we're getting into the tokconomic economics now, but we there's a flow here where basically you know stake rate and activity on the

chain then impacts token economics which can also impact the store value elements as well. So from the token economic perspective um issuance was up 2% in Q2. This is related to ETH. The reason that is up 2% is uh ETH staked was up 4%. So there's a a nonlinear relationship between the amount of ETH being staked onto the network and then uh the amount of issuance that's that gets paid out to those those stakers. Um and that's really what what kind of drove some of that issuance. Two 2% is is kind of interesting. We think we think there's some capital rotation coming from exchanges into uh ETH staking and and the percent of ETH staked on the network

is actually at its all-time high uh in terms of E supply currently. Um but issuance up 2% this helped offset some of the reduction in the real onchain yields that the total yield didn't drop as much uh in Q2. >> I see. And that issuance is that I I don't know if you have the metric here but uh if you annualize that are we at about you know45% something in that range >> I I from an annual perspective I I think so. So from we we measured it uh on a quarterly perspective uh and just took the average of Q2 it was about 73% in terms of the net the full net dilution which we'll get to in in a minute here.

Um but yeah I think that's that's probably accurate that 045 for look doing a full 365day look back. talk about the ETH burn ratio as well. >> Yes. So ETH burned um again you know this is this is an interesting chart. We we we saw the drop off in terms of L2 user fees in the chart before. We also see a drop off with ETH burned uh as a result of this and that started really in March uh of 24 and for the quarter we were down 55%. um 21, uh 351 ETH were burned in Q2. And you know, this is primarily again the the drop this quarter of 55% is primarily due to the Petra upgrade once

again. >> When you zoom out and look at the circulating supply, what uh what are we seeing in Q2? >> Yeah, so supply was was up just just slightly. So8% uh very very minimal uh increase in in the supply there. We we mentioned that the issuance was was up a little bit. There is some some burn that's that's obviously offsetting that a little bit but this is really related to the base fees uh being down 67% that that impacts the burn on the network. And so that's the reason why we would we weren't deflationary um for the for the quarter. But you can see that the token economic policy works pretty well even when the network is easing a little bit. We're still we're still kind of staying below um that like

1% or so target there. And uh net dilution rate, what does that show us? >> This is showing uh the difference between your your issuance uh and and your burn. Uh and so net dilution is the actual amount of of ETH on an APY percentage basis in terms of diluting you know staker uh I'm sorry ETH holders that are not staking. So this only impacts you if you are not staking uh your asset and and that the a as I mentioned the average APY in terms of the net not not APY but the average inflation for the quarter was 73% annualized uh that was up 64% from from Q1.

I know we're not offering forward forward guidance in the ETH report for uh for Q2 going to the future, but when it comes to kind of this this gets into maybe the next section when it comes to um this line here and kind of circulating supply. What are your expectations here for circulating supply in the early years of Ethereum issuance was um you know much uh much higher than it is now postmerge, postra, post other upgrades. Do you think it kind of oscillates around this 120 million number? It goes up a little bit. uh any expectations there?

>> I I think so. I think um what we've seen in terms of the burn dropping, you know, 80% uh in in Q2, it feels like we're probably at the at the lower level of that. And so I would expect, you know, we may have have bottomed in in terms of like the the net dilution that that we just showed. And this this chart, as you can see, it really does level off starting uh really when when we had the the the merge. And so I expect it's probably just going to sort of oscillate kind of around that that 120 line there as we move forward.

>> All right. Well, let's talk about the the next story for um Ether, the asset here, which is the store value story. Um ETFs. What did that look like in Q2? >> Yeah. So um a nice bright spot here. These are we're moving into some metrics here that we tracked from from store value perspective. Um and what what we saw here was 20% increase in terms of ETF uh assets under management and the major driver of that was the Fidelity F fe um ticker there. Um and so this this tells us a little story here. We've also seen some capital looks like it's moving off exchanges. We think there's uh it sort of suggests that capital is moving from centralized exchanges. People are

swapping into the ETFs. Um, and we think that is strengthening ETH uh as a as a store of value. >> How about the Treasury story? This is not quite ETFs, but it is another publicly traded entity. What is this? >> Yeah, this is some data that we're tracking from strategic ETH reserve. And this is showing um really just the the increase in Treasury companies that that popped up over the last quarter or so um up to 1.8 u million 1.9 million ETH in in Treasury now. And um some of the drivers of this have been Sharplink Gaming, uh Bit Digital. We we also um we also have seen just a number of other entities that have just started treasury strategies. This includes 48 different

entities, you know, across the ecosystem that have a treasury strategy in terms of acquiring ETH. >> Uh ETH percentage in smart contracts. What's the story here and how does that relate to store value? Yeah. So, this it's just off all-time highs here. We were down about 4% for the quarter. And this is driven by Estate, which about this this uh we're at about 43% in terms of the the total supply that's in smart contracts. About about 29% of the supply is in ETH staking currently. Um so, ETH staking actually rose during the quarter, but the total supply in smart contracts came down slightly. Uh so it suggests a little bit of a capital rotation

potentially out of you know DeFi TVL um that that maybe went into staking. But this is just telling us that you know people have confidence in the protocol in terms of moving money into DeFi using ETH as collateral um and also into into staking contracts. >> Now more ETH it looks like is moving um onchain or at least um off of exchanges. What's the the ETH balance on centralized exchanges tell us? Yeah, this as mentioned um seeing a little bit of capital rotate. The the balance on exchanges is currently down uh at its lowest level since July of 2016. Um of course, you know, we're seeing the amount of ETH in ETFs rise as that's

happening. So, we think there's a little uh move, you know, just a swath happening there. Um the amount of amount of ETH ETH in ETFs is now 3.4% of the total supply. So, we continue to see that movement and and we think also there's just capital that's flowing into DeFi uh as well and looking to use ETH as a collateral asset and we think that's strengthening ETH as a uh just really the capital efficiency of ETH as well. >> Looks like July 2016 this would look like 8-year lows then on uh ETH balances on centralized exchanges.

>> Correct. Correct. Yep. >> Uh let's dive into some of the network fundamentals here that uh you evaluate on the ETH report. So this is a measure of GDP. So tell us about this. >> Yeah, so GDP is measuring the sum of all the fees uh for the applications on top of just the Ethereum L1 here. And GDP for the for the quarter um was about 1.7 billion. There's about 108 apps that are being tracked here. This is data from from Token Terminal. Um, and we just think this, you know, gives you a pretty good indication of sort of the health of the economy built on top of of Ethereum L1. And you can see that is in pretty much a secular there's some volatility

of the chart, but it's in a secular uh increase. And what's interesting here is that this number can increase um even when value acrruel to ETH as we showed at the beginning is is sort of dropping. You can see sort of the network is scaling I think as planned and creating a better user experience for for for users on L2s that is leading to more you know value acrruel for the apps uh on top of Ethereum L1. Uh some of the drivers of the 15% drop for for for Q2 were from Circle uh and Tether which actually increased a little bit. Their fees are coming from um the the stable coin supply and and the interest payments that they they receive on that.

Um, Lido was down 25% for the quarter. A was down 32% and unis swap was down 34%. Primarily due to a reduction in just uh speculation onchain and just onchain activity in general. >> And this is uh Ethereum layer 1 GDP not inclusive of Ethereum layer 2 GDP. >> That's correct. That's correct. >> Okay. What's the story behind real world assets on Ethereum? >> Yeah. So, um, a good story here, I think, for Ethereum and and also moving forward. This chart does not include stable coins. We track those separately.

Um, but we're tracking, you know, US Treasury debt, private credit, institutional alternative funds, non-government US debt. Uh, we've got public equities on here, corporate bonds, commodities, and there's about 7.5 billion of real world assets currently on on Ethereum. And the that was up 48% during the quarter. The drivers of that were primarily coming from from US treasuries uh which were up 58% commodities up 24% and alternative assets up 40% on on the quarter. >> Uh staked ETH what's the story here?

>> Yeah staked ETH uh as mentioned it's it's at all-time highs right now in terms of the the total amount and also the percentage of uh ETH staked as as a percentage of the circulating supply. So 35.6 6 million ETH and uh that was up 4%. The primary drivers of this Binance was up 27% on the quarter. Uh EtherFi was up 18%. Coinbase actually down uh six offset by Coinbase being down 6% on the quarter. Um and Lido's market share actually dropped 6% uh in Q2 and most of that went to Binance.

uh another good story around uh total value locked and I think we're coming up to active loans here. So let's talk about that. >> Yeah, so TVL um this is tracking you know just all the the value of all assets in in D5 protocols uh 63.4 4 billion of value as of 630 that was up 33% uh on the quarter and um you know the primary drivers of this were a ien layer lido and etherfi the thing that we'll mention here is that you know the the TVL is uh reflexive of the ETH price as well so ETH price being up 30% also helped to to drive TVL up a little bit uh on the quarter. Yeah. And I know the full report has some fair value metrics

that look at is it um TVL um ratio with market cap as well. >> Yep. Yep. >> Um active loans on Ethereum. >> Yeah. So active loans uh a bright spot here. Active loans are are at an all-time high on Ethereum as of 630. 23.9 billion of active loans. That was up 43% on the quarter. Um Maple Finance big bright spot of that up 291% in Q2. Uler Finance was up 174%. A was up 46% uh and Morpho was up 23%. And just a note sort of in terms of the uh amount of those loans that are on the L2s, it's about 10.8% of total uh Ethereum L1.

Very good. All right. For all um participants, we're going to move into questions in just a minute. So if you have any questions uh do send them either in YouTube chat or uh on X and somebody will relay them to us. We'll just go for a question or two. Maybe if there's more then we'll uh we'll continue and then we'll close it down. Um the full report has some fair value metrics as well. And so again, if folks are interested in getting the entire um ETH report for Q2, go to the diver report.io and you can download that. Um maybe as we uh end this uh portion and get to questions, Mike, I I want to ask you again sort of the the strengths for Ethereum to the quarter, what you're

seeing when you look at all of these these metrics and what you think um token holders should should take away. To me, the the the big takeaways are are the Petra upgrade, the fact that the network is is making technical upgrades and improving user experience. And I think you're you're you're looking to see new applications come in and basically the the um technical capability of these L2s getting to a point where developers can come in and start to build some some new stuff. So that's that's what I'm looking for is to see an expression of all of these upgrades in actual, you know, new apps that are driving users. Uh it is a positive sign to me that as the network uh makes these technical upgrades that

we're seeing activity increase on L2s. And so that's that's a bright spot for me. And also the fact that you you have the ecosystem and the economy on top of of Ethereum L1 growing as as like the user experience and as the economics are actually improving for for users. Um and so I think over time this what I'm looking for is just to see more volume and to see that start to acrue down to ETH holders via you know the real the real yields uh as well. So >> well great. All right. Now, we're going to answer a couple of questions. And uh I'll just say about this that um this gets into more kind of the analyst opinion section of of the the

discussion. Everything that has been presented so far um we've just arrived you've just derived based on onchain data and has been very like objective and and neutral. But in answering some of these questions, we might have to get into opinion territory. Um the first question from wants to comment how much should ETH layer 2s pay mainet for burn to cover issuance. Would that imply an L2 gas cost hike? So how much should L2s actually be paying mainet to cover um issuance? Any thoughts on this question?

>> Good question. I think this is this is the this is the million-dollar question out there I think I think right now. And to me, that's a that's a question for the Ethereum Foundation to to deeply understand and and and how that impacts L2. I think there's a line at some point where you need to be able to create the user experience and and really provide value for these L2s and and Ethereum is a product and that the the the value of that product I think eventually will meet where supply you know where the market wants it to to meet and what the market wants to pay for. Um, but in terms of like ETH actually acrewing enough value to

support its staking e ecosystem to support its token holders, I think this is just going to work itself out over time. And it's it's unclear, you know, what that margin should be for Bass, right? Right. Base's margin is 97% right now. >> Uh, should that come down a little bit? Like should there be a negotiation, you know, there at some point? Uh, we know native roll-ups are something that Ethereum is is pushing for and I think this is going to get sort of solved as native roll-ups come out and and as the as the network continues to mature.

>> I'll take my uh moderator hat off for for a second and and give a take here too. Um, I I do think very much it depends as a token holder on what you think of Ethereum strategy with respect to this and there are like two ways to view it. um like the one more negative way to view it is like oh L2s are getting away with with murder basically you know these are um these sucking value from ETH token holders okay so that's one framing of it the other framing of it is basically now this is what um networks do when they want to uh stimulate their economy and uh drive usage and so what we've seen in some of these numbers is effectively upgrades that make it cheaper and cheaper for

users to transact on layer twos and that is a good thing and the idea um I think that Ethereum or Ether the asset sort of makes up for that as a store of value asset instead. If you you continue to see kind of the the treasury story continue the um ETH ETF story type continue other representations ultimately price uh continue that ETH is a store of value then I think you have greater confidence that that's what's happening. Basically, Ethereum the network is subsidizing uh cheap transactions um and um it's not going to be profitable for some time. Blobspace is going to continue to you know 2x 3x u basically every year and um you know the

the the val the asset itself either the asset itself makes up for it as a store value asset um that's kind of what you want to look for as a token holder I think. Um here's another question from Dr. Manhattan. How should we think about the difference between Bitcoin strategy companies like Micro Strategy and potential Ethereum strategy companies like BN uh BMNR? What metrics or frameworks can we use to measure and compare them? So Mike, have you done a deep dive into any of these treasury companies yet u to be able to compare something like Micro Strategy to what Tom Lee is doing, what Joseph Luben is doing, uh what um what Bid Digital is doing, any of that. So uh haven't

actually compared them to against each other or looked at I think to me you know looking at the E strategy companies or looking at Bitcoin uh treasury treasury companies uh you're looking at the sort of how much of the token is acrewing to you as a shareholder and I think that's the goal of a lot of these these treasury companies is to acquire uh continue to acquire ETH and to have that increase in terms of ETH per share for their shareholders. To me, that's probably the the the key metric there. But in terms of comparing it to Micro Strategy, I think, you know, you got two different assets here. And so, if you are analyzing Bitcoin, you're looking at Micro Strategy. If you're looking at ETH and you want exposure to ETH, then

you're going to look at some of these uh ETH treasury companies. >> They all kind of operate in a similar way, would you say? >> I think so. I I I think so. and u they're all you know trying to acrew as much value to their shareholders through ETH you know as possible and that's you know ETH the asset and also through through staking and and and providing validator services as well. >> Yeah I agree with that and I think the trady credit mechanism that they use are are pretty similar across these entities basically um some of the ETH treasury companies are quote unquote just copying the Michael Sailor Micro Strategy playbook. Um, one other avenue that is maybe more unique to Ether versus Bitcoin is some of the onchain yield sources. So, of course, staking is uh the obvious one, but then you get beyond

staking and you can generate some yield that way and increase your uh ETH per share. But, of course, when you're going chasing the the yield, things can get a little risky out there and you could put your principle at risk and that's something to uh look out for as well. Um, last question here and then we'll wrap up. Question from Broadscaler. Uh, how much is AI driving ETH right now? You have any thoughts on this, Mike? >> Uh, so I I would say it's it's it's starting to it's coming. I wouldn't say there's we've always had bots, right? So, we've always had sort of machine learning and algorithms and things happening on chain. I think we're going to continue to see more of it. And when and as that gets more sophisticated where they they become onchain, you

know, onchain agents that are actually doing stuff on behalf of of users, uh that is when we should see activity really take off. And I think stable coins are are a huge piece of that. Um but I would say right now like it it's kind of where we were at similar to where we were at even a couple years ago. I'm looking for the agents themselves to become more sophisticated and then them to start using stable coins. to me that I haven't seen that just just yet. >> Not seeing it in the data then yet. >> Not seeing it in the data just yet. Y >> audience, thank you so much for joining us for the the Q2 ETH report. Um you can get access to the deck. Of course, I'll give you that again. The d5 report.io.

There's also um these analytics, all of these graphs are available to you in Dune, so you can play around with them. You can look at them in real time, which is a benefit of of having all of this data on chain. Just type in the ETH report in Dune. You should be able to access that. And Bankless YouTube, of course, for a live stream of this update. The next time we do a quarterly call for the ETH report will be at the end of Q3. So, I think we're targeting somewhere around October 15th for that. So, stay tuned. And uh if you want to receive that in your inbox, go to the DeFi report and type in your email address and uh that'll come to you automatically. Also, lastly, Mike and I are recording more of an opinionated episode on both uh Ethereum and then

another report that Mike has come up with, uh, Salana. We're going to be recording those episodes in the next day or so and get them out on the Bankless podcast. So, this was a bit more of kind of the just the numbers analyst, uh, you know, just the numbers perspective. We're going to give you some more opinions on these results on uh, an episode on the Bankless Podcast feed to follow. Thank you so much for joining us today.