Try Quests to earn cryptoETH Flash Bounty: What’s Next?
Introduction
What is the Merge?
The Merge joined Ethereum's initial execution layer (Mainnet) with its new proof-of-stake consensus layer, Beacon Chain. It replaced energy-intensive mining with staked ETH to safeguard the network. It was a big step toward Ethereum's vision of scalability, security, and sustainability.
Beacon Chain came before Mainnet. Ethereum Mainnet's accounts, balances, smart contracts, and blockchain state were secured by proof-of-work, while Beacon Chain used proof-of-stake. Proof-of-work was replaced by proof-of-stake at The Merge.
Ethereum launched before it was ready for interstellar travel. The community created a new engine and hull with Beacon Chain. After testing, the new engine was installed mid-flight. This allowed the ship to put in some significant lightyears and take on the universe.
Proof-of-work secured Ethereum Mainnet till The Merge. This allowed the Ethereum blockchain we know to exist in July 2015, including transactions, smart contracts, accounts, etc.
Throughout Ethereum's history, engineers prepared for a proof-of-stake transition. Beacon Chain was developed on December 1, 2020, as a secondary blockchain to Mainnet.
Beacon Chain initially didn't process Mainnet transactions. Instead, it agreed on active validators and their account balances. After thorough testing, Beacon Chain agreed on real-world data. After The Merge, Beacon Chain became the consensus engine for all network data, including transactions and account balances.
The Merge switched block production to the Beacon Chain. Mined blocks are no longer valid. Proof-of-stake validators now process transactions and propose blocks.
The Merge preserved history. Mainnet and Beacon Chain integrated Ethereum's transaction history. Despite changing proof-of-work for proof-of-stake, Ethereum's history since genesis was unaffected. Previous wallet funds The Merge is still accessible. You needn't upgrade.
Merge's energy use
The Merge ended Ethereum's proof-of-work and began a more eco-friendly age. Ethereum's energy usage plummeted by 99.5%, making it a green blockchain. Ethereum energy usage explained.
Merge, scaling The Merge enabled Ethereum to achieve its goal's full scale, security, and sustainability.
Method
Here in this dashboard, we try to dig deep into the Ethereum network before and after the merger to see user behavior on things like Ether price, user volume and transactions, fees, and gas consumption. network, as well as the number of traders, exchanges, and trade volume, and the number and value of NFT sales.
Also, we will try to find the most popular DEXs to trade ETH and the most popular pools.
Finally, we will try to find the most popular NFT projects before and after Merge.
The important part of this analysis was CEX addresses. I found CEX Hot addresses from flipside_prod_db.crosschain.address_labels. Then, I used my findings in ETH transfers and token transfer tables.
Users From and To Ethereum
- Before the Merge ( Sept 15 ), The total number of users to CEXs had many ups and downs but after the merge decreased. The average number of users to CEXs before the merge was 32K and after the merge was 38K. The total number of users from CEXs to the Ethereum chain didn’t change too much.
Daily price before and after Merge
Since September 11th, the price of Ethereum has been declining, and even switching to POS has decreased the price more.
We can easily see from the above chart that the ETH average price one week before Merge was 1629$ but for the same time period after Merge it was 1359$.
To determine how the Ethereum network has responded to the Merg, we can examine a number of measures like Gas, transactions, users and etc.
Using these charts, we can find the most popular DEXes before and after the Merge. Before and after Merge, Uniswap-v2 was the most popular DEX, but its share of total sales count decreased after the Merge, so users are replacing it with Uniswap_v3 and Sushiswap.
In the case of the most favorite pools based on number of transactions, we see that:
- USDC-WETH is the most popular pool both before and after the Merge, and its share of total sales count increased after the Merge
- WETH-USDT and USDC-WETH have the second and third ranks in both cases.
- The fourth rank is different as before the Merge WETH-USDT UNI-v2 had the fourth place, but after the Merge, it belonged to DAI-WETH
The most popular NFT projects a week before and after the Merge
for before Merge we had 1.ENS 2.Opensea 3.Parallel as the most popluar ones.
for after Merge we have 1.Opensea 2.ENS 3.Orcs of Orakion as the most popluar ones.
As almost all Crypto users know about ENS and Opensea, I want to give a brief definition of the third rank, the Parallel and the Orakion.
The Parallel
Parallel is a sci-fi trading card game (TCG) that gives players ownership over their cards and other game assets by utilizing the strength of non-fungible tokens (NFTS). The cards can be used to make a deck and play a game that is being made for mobile and online devices.
a deck contains 40 cards and may consist of those from a single parallel, plus universal cards. universal cards do not belong to any parallel and may be used in all decks. each deck is limited to three (3) copies of a card, except in the case of legendaries which are limited to one (1) copy. this limitation applies to both the deck's parallel-specific cards and universal cards. you may create more than one (1) deck, and play as any of the parallels for each match.
The Orakion
The Orcs of Orakion is a collection of programmatically, randomly generated NFTs on the Ethereum Blockchain with a high resolution of 5000 x 5000 pixels and 500 million possible trait combinations. The orcs have different backgrounds, faces, hair, ears, armor, necklaces, weapons, scars, wounds, tattoos, and warpaint. Some traits are rarer than others, but all Orcs stick together and venture into the unknown world as one uniform group.
Using this chart, we can see that NFT sales have increased since the Merge, and Opensea had the most significant share before and after the Merge NFT sales, followed by X2Y2, Sudoswap, and Larva labs.
Conclusion
After the event, there was no apparent trend in the number of Ethereum swaps.
In the initial days after the Merge, swap transactions decreased but eventually increased.
Days before the Merge, there was a negative trend in the number of NFT sellers and purchasers, but both grew once the event took place on the network.
We can not say that The Ethereum merge didn’t impact this chain. I can conclude that transfers to the Ethereum chain increased but from Ethereum to CEXs decreased after the Merge. The Ethereum merge impacted Users, Transactions and especially Volume.
But ETH token transfers ( Native token of Ethereum ) didn’t change too much. The only parameter was the ETH amount. The ETH transfers from and to the chain increased before the merge but after the Merge decreased.
About me:
- Author: Hojjat
- Discord: hojjat7878#8809
- Twitter: @hojjat8d
- Email: hojjat78delshad@gmail.com
THANK YOU FOR READING!
Appendix
The solution of this question and the queries are completely used from the filipside database
The construction of the dashboard was also used from the site app.flipsidecrypto.com/velocity, which belongs to flipside
