State of Akash Network Q2 2024

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Key Insights

Usage and Provider Analysis

New leases on Akash show the number of new deals created between users and providers for renting resources on the network. Akash had a record quarter, with users opening over 27,000 leases on the network, an increase of 44% QoQ. Part of the growth in new leases may be attributed to the types of projects integrating with Akash throughout the quarter. Passage

Active leases on Akash are leases that currently utilize and manage resources on the network. Leases that close are no longer considered active. Active leases grew 11% QoQ, while revenue grew 8% QoQ. The number of leases does not necessarily need to correlate with revenue, given that revenue measures the USD value of what was spent on leases. For this reason, the chart above shows that revenue often does not move in tandem with leases, especially as leases peaked at the start of the quarter.

GPUs, CPUs, storage, and RAM are the principal resources that can be leased on Akash. In Q2, each resource saw capacity grow more than usage (with the exception of RAM, which shrank less). This led utilization in each category to also fall QoQ. A notable critique of decentralized resource networks is their lagging demand. While many have proven to scale the supply side successfully, many lack

The Akash community prioritized

As a permissionless network, resource providers can join the Akash Network from anywhere in the world. This geographic diversity protects the network against regional disruptions, such as natural disasters, power outages, or political instability. It can also enable Akash to provide lower latency and better performance to users around the world, by processing tasks closer to the end users, reducing the time it takes for data to travel across the network. The number of average active providers on Akash grew 2% QoQ, reaching a record-high daily average of 74 active providers. Most Akash providers are concentrated in North America and Europe. In Q2, new resource providers joined from Australia

AKT’s market cap peaked in the first half of the year, reaching $1.4 billion before ending Q1 at $1.1 billion. It ended Q2 at $867 million, falling 23% QoQ. Simultaneously, the protocol emitted roughly 11 million AKT, growing the supply by 5% QoQ. In addition to the general market price volatility that categorized crypto in Q2, sell pressure from various proposals, such as the Praetor acquisition

Staked AKT has stayed relatively steady throughout the year. However, rewards have jumped by almost 24x in USD terms YoY, vastly increasing the profitability of AKT staking. Although the end-of-quarter price of AKT fell in Q2, the average price of AKT throughout the quarter increased by 11%. Both the amount of AKT emitted and the price of AKT continued to grow QoQ throughout the year, driving the return on staking rewards. USD growth with a stagnant total network stake has led to more profitable staking opportunities for long-term AKT stakers.

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