Try Quests to earn crypto2022 Retrospective
Introduction
Whta is Ethereum?
Ethereum is a decentralized blockchain network powered by the Ether token that enables users to make transactions, earn interest on their holdings through staking, use and store nonfungible tokens (NFTs), trade cryptocurrencies, play games, use social media and so much more.
Many consider Ethereum to be the internet’s next step. If centralized platforms like Apple’s App Store represent Web 2.0, a decentralized, user-powered network like Ethereum is Web 3.0. This “next-generation web” supports decentralized applications (DApps), decentralized finance (DeFi) and decentralized exchanges (DEXs), for instance.
Ethereum is essentially a single decentralized system that runs a computer called the Ethereum Virtual Machine (EVM). Each node holds a copy of that computer, meaning that any interactions must be verified so everyone can update their copy.
Network interactions are otherwise considered “transactions” and are stored within blocks on the Ethereum blockchain. Miners validate these blocks before committing them to the network and acting as transaction history or a digital ledger. Mining to verify transactions is known as a proof-of-work (PoW) consensus method. Each block has a unique 64-digit code identifying it. Miners commit their computer power to find that code, proving that it’s unique. Their computer power is “proof” of that work, and miners are rewarded in ETH for their efforts.
Decentralized finance has arguably been the Ethereum network’s biggest achievement. DApps that can perform several functions within the ecosystem popped up around 2019 to 2020 and are growing in popularity by the day. The more DApps are used, the more the Ethereum network will be used as a result. Ethereum’s DeFi scene is the biggest one out there, with successful DApps bringing more awareness to the platform over the years.
Artists, for example, are making millions of dollars by bringing their work to the blockchain via nonfungible tokens, or NFTs. One might wonder, why buy digital art when we can just screenshot it? Collectors want ownership, that’s why. NFTs also hold proof of ownership and serve as a secure form of storage. It’s basically an all-in-one for collectors, so it’s not hard to see the appeal.
It’s the same reason that one would want the original “Mona Lisa” over just a copy, even if a copy is indistinguishable from the first. NFTs also represent usable items and accessories in online games. Players can decorate their houses and characters with unique assets from artists, providing yet another income stream for creatives.
Developers have built uncensorable social media apps, allowing users to tip one another for content. Games allow users to invest in assets, play to grow them and then sell for a profit, extracting actual value from their game time. There are prediction platforms that reward correct forecasts and freelance platforms that don’t take a huge cut of each payment.
This is all managed autonomously through blockchain and smart contracts, with DeFi putting users more in control of their funds than ever before.
Source:
Methodology
In this dashboard, using ethereum database tables available on the Flipside chain database, we analyze the health of Web3 On Ethereum Network from diffrent aspects.
Technical:
> Ethereum Tables: > > ethereum.core.ez_dex_swaps > > ethereum.core.ez_nft_mints > > ethereum.core.fact_token_transfers > > ethereum.core.fact_event_logs > > ethereum.core.fact_hourly_token_prices
Findings
In this section, we examine the fees paid for processing swap transactions on different platforms. The total fee paid for confirming transactions on the Uniswap v3 platform is 137,691 ETH. Uniswap v2 is in the second place with recieved fee of 121141 ETH. The Sushiswap platform is in third place with recieved fee of 42,595 ETH.
The average fee paid for the Synthetix platform is higher than other platforms. 0.02 ETH is the average fee paid on the Synthetix platform.
42.6% of the fee paid for swap transactions is the Uniswap version 3 platform. 37.5% is also for Uniswap version 2 platform. The Sushiswap platform also has a 13.2% share. And the lowest paid fee is related to Curve and Balancer platforms.
The average fee paid for swap transactions on the Sushiswap platform is 0.01 ETH.
Findings
In the charts of this section, we examine the amount of gas fee paid to the projects. The highest amount of gas fee paid for the Tubby Cats project was 695.8 million dollars. Approximately 39.2% of NFTs' gas fee are related to the Tubby Cats project. It is followed by the otherside project with gas fee at the amount of 353.4 million dollars. Yokai Kingdom's collection has a gas fee of 91.6 million dollars and is in the third place.
Findings
In the chart on the left, we see the number of transactions processed on the Ethereum network on a daily basis. On average, 1 million transactions are processed daily on the Ethereum network. The highest number of transactions processed on Ethereum was on December 9, 2022, with 1.93 million transactions. The number of transactions on November 6 and 7 has decreased by almost 50 thousand transactions. On November 6, the FTX collapse crisis began.
Findings
In the chart on the right, we can see the daily minimum, average and maximum gas rate. The highest Gas Fee rate was on August 1 and was 476 GWEI. If we look carefully at the chart from September 15th, we will notice that the maximum rate of the Gas Fee has increased compared to before. From September 15 onward, the Ethereum Merge happened to cause a decrease in Gas Fee. Although Ethereum's transition had increased the hope of Ethereum fans to reduce Gas Fee, it has not been able to reduce Gas Fee as users expected, and it has caused more disappointment to users.
Findings
In the chart on the left, we see the amount of fees paid for validating transactions on a daily basis. The highest paid fee is related to the month of May and is 81747 ETH. After May 12, we see that the transaction confirmation fee has decreased. One of the reasons for the decrease in fees is related to the bear market, which, with the collapse of Terra and the increase in the inflation rate by the Federal Reserve, the collapse of FTX, caused a sharp fall in the market. On September 15, 2022, the Ethereum Market happened, which caused a decrease in fees.
In 2022, approximately 1.7 million ETH have been paid to validators for validating transactions.
Findings
In the chart on the right, we can see the minimum, average and maximum fees paid to confirm transactions on the Ethereum network on a daily basis. The highest amount of fees paid for confirming transactions is on August 1 and is 0.1 ETH.
The lowest fee paid was on August 22 and was 0.0004 ETH.
Findings
In this section, we examine the status of swap transactions based on platforms from different aspects. The highest number of processed swap transactions is for UniSwap platform and 20 million swap transactions for UniSwap version 2 and 3.
Sushiswap is in second place with 2.9 million swap transactions. The number of Uniswap platform swappers is more than other platforms. 1.5 million swappers are for Uniswap v2 and 517 thousand swappers are for Sushiswap platform. The amount of swap transactions processed on Uniswap v3 is 2.5 billion dollars. After that, Curve platform is in second place with 461 million dollars of processed transaction volume.
69.6% of the volume of swap transactions is related to Uniswap v3, 12.4% is related to Curve platform and 9.14% is related to Uniswap v2 platform. Also, 5.56% of the volume of transactions is related to the Sushiswap platform and only 3% is related to the Balancer platform. The highest average volume of swap transactions is related to the synthetix platform.
The maximum volume of swap transactions is related to Curve platform. $69.9 million is the maximum transaction volume in Curve.
Uniswap v3 and Balancer platforms are in the second and third places with volumes of 36.6 million dollars and 8.2 million dollars.
Findings
In the graph on the left, we can see the number of mints and minters of NFTs on a daily basis from January to December 2022. The highest number of mints and minters was on September 17. The reason for the increase in mints and minters can be Ethereum Merge, which users expected to reduce Gas Fee, but Ethereum Merge did not meet the expectations of users.
Findings
In the chart on the right, we can see the volume of Mint transactions in USD and Ethereum units on a daily basis. The highest amount of Mint transactions was on June 12, amounting to 199.9 million dollars. After that, the highest amount of Mint transactions was on November 10, at the amount of 145 million dollars.
Findings
In the graph on the left, we see the number of collections and NFTs on a daily basis from January to December 2022. In the chart, on September 5, we can see that 437,909 NFTs have been supplied of 183 collections.
In the graph on the left, we see the number of collections and NFTs on a daily basis from January to December 2022. also on November 8, we can see that 105770 NFTs have been supplied of 126 collections.
Findings
In the diagram on the left, we can see the collections and projects that have the most gas fee based on the number of mints and minters. ENS project on Ethereum has 1.69 million mints with 12.4 thousand miners. After that, the otherside project is in second place with 45,079 mints and 41,662 mints.
Findings
In the charts of this section, we see the average gas fee paid for projects on the Ethereum network. The average fee paid for the Tubby Cats collection is 34.7 thousand dollars.
The average gas fee paid for the popular ENS project is $27.9. ENS project on the Ethereum network is one of the projects that will have an impact on Web3 and is of great importance.
Question
2022 Retrospective
Let’s explore some key indicators of the health of the Web3 industry.
- Project ETH supply growth for 2023 by using various average gas prices.
- What is the highest value DEX swap, by protocol?
- Where was there the most DEX swaps by protocol?
- Which were the highest gas consuming NFT mints? \n
Conclusion
In this dashboard, we analyzed a number of Web3 parameters using the Ethereum database. We analyzed parameters such as gas fee and swap and NFT transactions. The data we reviewed are on-chain data and with the events of 2022, you cannot rely only on the on-chain data and predict the year 2023. The collapse crises of Terra and FTX and the increase in the inflation rate by the Federal Reserve in 2022 showed us that on-chain data cannot be sufficient for future analysis.
The constant stop-and-start pattern of financial markets in recent months has made it difficult for allocators to deploy capital in a meaningful way for most asset classes. But for crypto in particular, the insolvencies and deleveraging events of 2022 have culminated in a confidence crunch that we believe could extend the downcycle for at least several more months. Constraints on liquidity may also disrupt normal market operations in the short-term as many institutional entities reckon with assets being locked up in FTX’s bankruptcy proceedings.
However, it is not all bad news. This environment has helped cryptocurrencies pull back from their speculative fervor and paves the way for new innovations in the asset class. The movement towards self-custody and decentralized finance (DeFi) protocols (i.e. decentralized exchanges or DEXs) will likely accelerate after the developments in 4Q22. I believe that the transgressions in the crypto space in 2022 were concentrated among CeFi (centralized finance) or CeDeFi (a combination of both CeFi and DeFi) entities, such as Celsius, Three Arrows Capital (3AC), and FTX. Mainly, the actions of these bad actors come down to issues of trust and transparency, which DeFi has historically handled well given its on-chain, auditable properties. Of course, DeFi comes with its own risks like smart contract exploits, which could put more scrutiny on how different decentralized applications are managing their protocol risks. Also, rules-based margining embodied in smart contracts needs to account for the fact that the volatility of certain digital assets can be anywhere between 50-200%, while control of the token supply is not always clear, thus affecting their true liquidity. Looking ahead, i believe the evolution of the crypto ecosystem is putting subjects like tokenization, permissioned DeFi, and web3 front and center. Meanwhile, bitcoin’s core investment thesis remains intact, and Ethereum seems to be outpacing its layer-1 competition in terms of network activity. We are seeing a greater variety of use cases for non-fungible tokens outside of art, like using NFTs to certify and authenticate real world assets or as ENS domain names. Stablecoins are now one of the largest sectors in the crypto ecosystem with an outsized role in storing and transferring wealth.
Metrics
Transactions & Gas & Fee Status
- Daily Number of Transactions On Ethereum Network
- Minimum, Average and Maximum Gas Price [GWEI]
- Total Paid Fee [ETH]
- Total Paid Fee and Cumulative Paid Fee [ETH]
- Minimum, Average and Maximum Paid Fee [ETH]
Swap Status
- Total Number of Swap Transaction by DEX
- Share of Number of Swap Transaction by DEX
- Total Number of Swappers by DEX
- Share of Number of Swappers by DEX
- Total Volume of Swap by DEX [USD]
- Share of Volume of Swap by DEX [USD]
- Average Volume of Swap Transaction by DEX [USD]
- Maximum Volume of Swap Transaction by DEX [USD]
- Total Paid Swap Fee by DEX [ETH]
- Share of Swap Fee by DEX
- Average Paid Swap Fee by DEX [ETH]
NFT Status
- Daily Number of Mints and Minters
- Daily Volume of Mint Transaction [ETH][USD]
- Daily Number of Collections and NFTs
- Daily Paid Mint Fee [ETH]
- Daily Paid Mint Fee [USD]
Top Projects Status [based on Most Paid Gas Fee]
- Top Projects - Number of Mint and Minters by Paid Fee
- Top Projects by Paid Fee [USD]
- Share of Paid Fee for Top Projects
- Top Projects by Paid Fee [ETH]
- Average Paid Fee for Top Projects [USD]
- Average Paid Fee for Top Projects [ETH]