Try Quests to earn cryptoFlash Bounty: Post Merge Behavior
The merge has occurred. How have users responded in days that followed?
Introduction
What is Merge?
In Ethereum's update, which is called integration, this blockchain switches to an energy-efficient way to perform transactions, which is called proof-of-stake. In other words, Ethereum migrates from proof-of-work to proof-of-stake. Both are algorithms that allow users to add new cryptocurrency transactions and record them on the blockchain network.
How will this affect users?
Although the Ethereum merger is not expected to make the network faster or lower transaction fees immediately, investors may see some benefits along the way.
This Merge could be bullish for crypto investors in the long run as it sets the stage for future speed, fee, and ecosystem development.
Methodology
As stated, this Merge is not expected to have a quick impact on the reduction of transaction fees, transaction speed, etc.
- Therefore, in this dashboard, we will first check the data related to transactions.
- Then the activities of the users determine to see what activities have been done before and after Marge and what contracts Users have used the most.
- Then, the data related to the staking of Ethereum is checked, and the amount of liquidity that users have entered into the liquidity pools is also checked.
- The amount of Ethereum entering the exchanges is also checked before and after the Merge, and finally, the activity of users in the field of NFTs is also checked.
Observations:
As it is clear from the graphs:
- before Marge, the number of transactions and the number of daily active users had a downward trend, but in the first days after Mare, September 16 and 17, significant growth in these values is seen.
- Before such updates, the news usually does its job and the market becomes bullish and the price of that cryptocurrency increases. As it is clear from the chart, the price of ETH grow up a week before Marge and reached $1,764, but after Marge, it went on a downward trend.
- As mentioned in the introduction, it is not expected that the transaction fees will decrease quickly. The graphs on the right also show this well.
- The most used event among users has been “Transfer”, both before and after Marge.
- In the days close to Marge, the number of transactions, the average amount of ETH transferred and the number of active users increased.
Observations:
- The minting of NFTs had a downward trend before Marge, but on the day of Marge, it increased significantly and reached the number of 197.8K. But after Marge, it has generally entered a downward trend again.
- The amount of ETH consumed for Mint has increased after Marge.
- On the day of Marge, due to the congestion of the network, the fees of Mint were very high and reached a total of 96.87K.
- The number of users has increased since Marge.
- On the other hand, the volume of buying and selling of NFTs has not increased significantly but the transaction of selling NFTs has decreased.
- In general, the number of sellers was more than the number of buyers.
Conclusion:
In general, it can be said that with the update of Ethereum, it is expected that the way for the development of Dapps will be smoother and more users will be attracted to this ecosystem.
The number of users at the beginning of the work has also increased significantly in different parts of the Ethereum ecosystem after Marge, and mostly the number of users and their investment volume has increased.
Due to the algorithm of proof of stake, the volume of stakes by users has increased and the input to the staking platforms has also increased manifold.
Now we have to wait for the next updates and see how the Ethereum ecosystem transaction fee will decrease.
Observations:
- Due to the fluctuations of the market, users try to reduce the risk of their assets, so usually after such updates and news, they withdraw their assets and swap them into less risky assets.
- In this update, it is clear that users have removed their ETHs from Aave, Maker, and Uniswap platforms.
- The highest amount of output occurred on September 14, one day before Marge.
- After Marge, the net output decreased, and on some days, the amount of input was more than the output.
Observations:
- Before the update, the volume of inflow to centralized exchanges was a significant amount compared to their outflow, and users tried to manage capital by converting ETH to stablecoins.
- On September 14, one day before Marge, the amount of 3.18M ETH entered the exchanges, and 2.16M ETH was withdrawn, which makes the net amount of input equal to 1.01M ETH.
- Also, the black line that shows the 7-day moving average of the net input has been positive since September 13 and this trend continued until September 21.
Observations:
- In the graphs on the right, the data related to Ethereum stakig on three platforms Lido, Anker, and Rocketpool are shown.
- As it is known, since the day of Marge, the amount of ETH staked has increased significantly and has multiplied several times compared to before Marge.
- The number of transactions has also increased in the same proportion, and after Marge, the number of staking transactions has grown significantly.
- Anker is the only platform where the number of transactions is constant compared to before.
- Also, the number of users has grown day by day and the largest number of users have used the Lido platform for ETH staking.