Introduction

Ethereum was created in 2015 as a platform for developing decentralized applications. The platform's internal cryptocurrency with which it shares its name became the second most famous cryptocurrency after Bitcoin. The relative simplicity of Ethereum mining, its widespread presence and popularity make many people wonder how Ethereum is mined. \n \n Mining is the process of creating a block of transactions to later add to the Ethereum blockchain. Ethereum, like Bitcoin, currently uses a consensus mechanism called Proof of Work (PoW). Mining is the lifeblood of Proof of Work. Ethereumminers (i.e., the computers running the software) use their time and computing power to process transactions and produce blocks.

The Ethereum Merge of the blockchain on which the world's second largest cryptocurrency is based, will change its protocol to proof of stake, an upgrade that aims to reduce its energy consumption to create new tokens and perform transactions, but could lower security.

Methods

In this analysis we will focus on ETH Merge. More specifically, we will analyze the following data:

• Miners activity
  • Active miners.
  • Average transactions per block mined.
• Transactions activity
  • Active users and transactions.
  • Gas price.
  • Fees and average fee per transaction.
  • Active users comparison and transactions.
  • Gas price and fees and average fee per transaction.
• ETH swaps activity
  • Net volume of ETH in DEXes before and after merge.
  • Daily ETH swaps in and out before and after merge.
  • Average volume swapped in and out before and after the merge.
  • ETH price vs net DEX swaps.

Miners activity

In this first graph we can see that after the merge the active miners increased dramatically, surpassing the average number of active miners for the whole of September. Before the merge they were around 50 miners and after the merge they reached more than 500. In the second graph we have analyzed the average transactions per block mined. We can see that after the merge the blocks being mined have less transactions than before the merge.

Transactions activity

In the first graph we have analyzed the active users. We can see that after the merge there was a very important peak. However, then it went back down to the values before the merge. It remains quite stable. In the second graph we can see the transactions made. We can see that after the merge, the transactions exceeded the average. The values remain in the average and before the merge they were a little below this average.

In the third graph we have analyzed the gas price. We see that after the merge, the lower values tend to go even lower. It has a downward trend. The same happens with the higher prices, every day they go down in value. Finally, in the last graph we can see the fees and average fee per transaction. We can see that after the merge the average transaction fee has been decreasing, as well as the fees. In few cases they have exceeded the average fees.

ETH swaps activity

In the first table we can see that after the merge the number of active users has doubled. We can see that there are approximately 400k, while before the merge there were almost 200k. The same happens in the case of transactions. Before the merge there were approximately 650k transactions, while after the merge there are more than 1M transactions. We can say that there has been a radical increase in both users and transactions.

Then the gas price has been analyzed. We can see that before the merge the gas price was 47 on average, while after the merge the price has been 15. Therefore, we see a significant drop in the gas price.

Finally, we see a table of fees and average fee per transaction. We can clearly see that before the merge the fees had a cost of 0.002 and a total of more than 2.7k fees per day. While in the after merge, we see that the fees have a cost of 0.001 and a total of more than 1.5k fees per day. The cost and total fees per day have dropped considerably.

In the first graph we have analyzed the Net volume of ETH in DEXes before and after merge. We can see that after the merge the volume acquired went up considerably, although it went back down quite a bit, to the point that the net vollume also went down. Before the merge there was more difference between the inflow and outflow of ETH.

The second chart shows the daily ETH swaps in and out before and after merge. We can see that they have similar values and a very similar trend. However, after the merge, the net swaps went up.

As mentioned before, after the merge, the average swapped volume went up in the in volume, but then went down more than before the merge. The out volume has remained at the same values.

Finally, in the last chart we can clearly see that there is no correlation between the price of Ethereum and the net DEX swaps.

Key insights

• After the merge the active miners increased dramatically, surpassing the average number of active miners.
• After the merge the blocks being mined have less transactions than before the merge.
• After the merge in the active users there was a very important peak. Then it went back down to the values before the merge.
• The gas price, after the merge, the lower values tend to go even lower. It has a downward trend.
• After the merge the average transaction fee has been decreasing, as well as the fees.
• there are approximately 400k active users, while before the merge there were almost 200k.
• Before the merge there were approximately 650k transactions, while after the merge there are more than 1M transactions.
• efore the merge the gas price was 47 on average, while after the merge the price has been 15.
• before the merge the fees had a cost of 0.002 and a total of more than 2.7k fees per day. While in the after merge, the fees have a cost of 0.001 and a total of more than 1.5k fees per day.
• After the merge the ETH volume acquired went up considerably, , although it went back down quite a bit.
• Before the merge there was more difference between the inflow and outflow of ETH.
• In the daily ETH swaps, after the merge, the net swaps went up.
• The average swapped volume went up in the in volume, but then went down more than before the merge.
• There is no correlation between the price of Ethereum and the net DEX swaps