Try Quests to earn cryptoOpen Analytics Bounty - ETH
Introduction
Ethereum v2.0 - POS Algorithm
Ethereum 2.0 is a major upgrade for the Ethereum Network, Shifting the Network to Proof of Stake (PoS) from the Proof-of-Work (PoW) Model. Ethereum 2.0 aims improve the network's scalability, accessibility, and security. The Merge represents a significant update to Ethereum’s current blockchain consensus mechanism. In short, the transition will see Ethereum shift from a mining-based proof-of-work (PoW) blockchain to a more energy-efficient, scalable proof-of-stake (PoS) system. This will be achieved by joining Ethereum’s mainnet with its PoS-based system, referred to as the Beacon Chain.
Ethereum, the industry’s second-largest cryptocurrency project by market cap, provides infrastructure for blockchain developers to build and deploy their own decentralized applications (dApps) and cryptoassets.
Prior to The Merge, transactions sent over the Ethereum network were verified and added to its blockchain via a PoW system. PoW involves cryptocurrency miners — who compete to verify transactions on the network — racing to generate a solution to a difficult (and therefore energy-intensive) mathematical puzzle. You can learn more about proof-of-work mining in our Learn Center article What is Bitcoin Mining?
After The Merge, Ethereum’s miners will be replaced by stakers, who lock up ETH for the right to validate transactions. In doing so, The Merge is expected to reduce energy usage on the network by more than 99.5%.
Additionally, The Merge lays the foundation for future upgrades planned for Ethereum. Proposed network scalability improvements, like sharding, can only work under a PoS consensus model. Sharding is a technique of splitting a blockchain into smaller, independent shard chains in order to reduce network congestion and increase transaction throughput. The implementation of sharding is planned during subsequent phases of Ethereum’s ongoing development roadmap.
Summary
- The Merge is the Ethereum blockchain's transition from a mining-based proof-of-work (PoW) blockchain to a more energy efficient, scalable proof-of-stake (PoS) system
- The Merge is expected to lay the technical foundation for future scalability improvements on the Ethereum blockchain
- ETH holders do not need to take any action before, during or after The Merge takes place.
Source:
Findings
Total transactions
- As we see, the number of total transactions in 10 days after merge is higher than in the 10 days before merge. It’s about 0.1x higher. Total transactions of Ethereum in 10 days before merge are about 10.7M tx and the average total tx per minute is about 752. These number is 12.9M tx (total) and 815 tx (avg tx per minute) in 10 days after merge.
Succeeded transactions
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The number of transactions in 10 days before merge was about 10.29 million transactions, which was equal to 12.38 million transactions in 10 days after merge.
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The average number of successful transactions in 10 days before merge are 723 transactions per minute and in 10 days after merge, it is 782 successful transactions per minute.
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The percentage of successful transactions to total transactions in 10 days before merge is 96.1%, while this number is 96% in 10 days after merge. What we expected was that it would be higher for POS because the cost per transaction is lower.
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Failed transactions
- But in the failed transactions section, the total number of these transactions in 10 days before merge was equal to 418k transactions, and in 10 days after merge equal to 521k transactions.
- The average number of failed transactions per minute in 10 days before merge was 29 and in 10 days after merge, it is 33 failed transactions per minute.
- The part that determines which performance was better is the percentage of failed transactions to the total number of transactions, in which 10 days before merge was equal to 3.9% and in 10 days after merge is equal to 4%.
Findings
In the charts, we can see the number of transactions 10 days before and after ethereum merge. In the 10 days before the Ethereum merge, an average of 1 million transactions were processed daily. 10 days after Ethereum, an average of 420,000 transactions have been processed daily. From September 5 to September 24, approximately 14 million transactions have been processed. Of this number of processed transactions, 72% were processed 10 days before the Ethereum merge and 27% were processed after the Ethereum merge. In the charts, we see the rate of successful and failed transactions. The successful transaction rate was 96.1% in the 10 days before merge and 96% in 10 days after merge. So we see that there is a difference of 0.1%, which is insignificant. The rate of failed transaction in 10 days before merge is 3.9% and 10 days after merge is 2.04%, which has grown by 0.5%. Although the rate of successful transactions is expected to increase in the coming months, which shows the stability of the system.
Findings
In the charts, we can see the number of users 10 days before and after ethereum merge.
10 days before the ethereum merge, an average of 330,000 daily users have used ethereum.
10 days after the merge of Ethereum, an average of 1 million users have used Ethereum.
The total number of active users during the 10 days before the Ethereum merge is 2.39 million. 10 days after the merger, Ethereum is 3.1 million.
In the charts, we see the number of accounts (wallets) that have been newly created in Ethereum.
10 days before Ethereum merge, each user has done 4.4 transactions on average. 10 days after Ethereum merge, each user has made 4.1 transactions on average.
Findings
In the charts, we see 10 of the most used smart contracts by users, 10 days before and after Ethereum merge. 10 days before the Ethereum merge, approximately 218,000 HOP protocol transactions have been processed. 10 days after the Ethereum merge, with an increase of 12 thousand transactions, the use of Hop has reached 230 thousand transactions. Almost the usage of HOP has grown by 1% after the merge. After HOP protocol, stablecoin USDC is the most used among Ethereum blockchain users. 113.7 thousand transactions have been processed for USDC 10 days before the Ethereum merge. 119.4 thousand transactions have been processed for USDC 10 days after the Ethereum merge. USDC transactions increased by 0.4% after merge. 10 days before the Ethereum merge, 100,300 transactions have been processed on UniSwap. 10 days after the Ethereum merger, 98.9 thousand transactions have been processed on UniSwap. That is, 10 days after Ethereum integration, we see a 0.6% decrease in transactions in UniSwap. Of course, the possibility of increasing the use of UniSwap after the merge of Ethereum is very high.
Findings
In this section, we can see the status of fee transactions 10 days before and after Ethereum merge. As we can see in the charts, 10 days before the Ethereum merge, the price of Ethereum averaged $1,500. But 10 days after the merge, the average price of Ethereum is $1,300. The amount of fee paid for the 10 days before the merge of Ethereum is 18.49k ETH. We have dropped to 4.06k ETH 10 days after the Ethereum merge. The average per transaction 10 days before the Ethereum merge is 0.00774 ETH. But 10 days after the Ethereum merge, the average fee has dropped to 0.00504 ETH. A decrease in average fee means an increase in users. In the previous charts, we saw that the number of Ethereum users increased significantly after the merge.
Findings
In this section, we see the number of transactions and the volume of transactions and wallets that originated from the Ethereum swap for 10 days before and after the ethereum merge. 49.4% of the swap transactions are from ethereum for the 10 days before the ethereum merge. 10 days after the ethereum merge, it has reached 50.6%. That is, we see a growth of 1.2 percent. 10 days before the merge, approximately $4.3 billion worth of ethereum have been swapped. 10 days after the merge, it has reached 5.08 billion dollars. That is, we see an increase of 7.8 percent. As many as 21.8 thousand users have done ethereum swap 10 days before the ethereum merge, it has decreased to 21.6 thousand users 10 days after the merge.
Methodology
in this dashboard, we use ==ethereum transaction, event log, swap tables== available on flipside chains database for analysis of 10 days before and after ethereum merge.
And we will examine the effects of Ethereum Merge on the Ethereum Blockchain from different aspects, including the status of transactions, successful and failed transactions, the status of users, the status of smart contracts, and the price of Ethereum and transaction fees.
Here we consider September 5th to 14th as 10 days before Ethereum Merge and September 15th to 26th as 10 days after Ethereum Merge.
Metrics:
Overview
- 10 Days Before Merge - Total Transactions
- 10 Days After Merge - Total Transactions
- 10 Days Before Merge - Total Average Transactions Per Minute
- 10 Days After Merge - Total Average Transactions Per Minute
- 10 Days Before Merge - Total Succeeded Transactions
- 10 Days After Merge -Total Succeeded Transactions
- 10 Days Before Merge - Average Successful Transactions Per Minute
- 10 Days After Merge - Average Successful Transactions Per Minute
- 10 Days Before Merge - % (Succeeded / Total) Transactions
- 10 Days After Merge - % (Succeeded / Total) Transactions
- 10 Days Before Merge - Total Failed Transactions
- 10 Days After Merge - Total Failed Transactions
- 10 Days Before Merge - Average Failed Transactions Per Minute
- 10 Days After Merge - Average Failed Transactions Per Minute
- 10 Days Before Merge - % (Failed / Total) Transactions
- 10 Days After Merge - % (Failed / Total) Transactions
Transactions Status
- Daily Number of Transactions - 10 Days Before and After Merge
- Total Transactions - 10 Days Before and After Merge
- 10 Days Before Merge - Daily Transactions Status
- 10 Days Before Merge - Daily Transactions Status - Percentage
- 10 Days After Merge - Daily Transactions Status
- 10 Days After Merge - Daily Transactions Status - Percentage
Users Status
- Total Number of Users - 10 Days Before and After Merge
- Total Users - 10 Days Before and After Merge - Percentage
- 10 Days Before Merge - Daily New Wallets (Users)
- 10 Days After Merge - Daily New Wallets (Users)
- 10 Days Before Merge - Total Number of Active Wallets (Users)
- 10 Days After Merge - Total Number of Active Wallets (Users)
- 10 Days Before Merge - Average Transactions Per Users
- 10 Days After Merge - Average Transactions Per Users
Top Smart Contract Used by Users
- 10 Days Before Merge - Smart Contracts Used by Users
- 10 Days After Merge - Smart Contracts Used by Users
- 10 Days Before Merge - Smart Contracts Used by Users
- 10 Days After Merge - Smart Contracts Used by Users
ETH Price and Fee
- ETH Price - 10 Days Before and After Merge
- 10 Days Before Merge - Total Fee
- 10 Days After Merge - Total Fee
- 10 Days Before Merge - Average Fee
- 10 Days After Merge - Average Fee
- Daily Total of Fee - 10 Days Before and After Merge
- Daily Average of Fee - 10 Days Before and After Merge
Conclusion
In this dashboard, we examined the status of Ethereum merge, 10 days before and after Ethereum merge. We saw that the number of transactions increased after the Ethereum merge. The number of active wallets has increased. After the Ethereum merge, we saw a decrease in transaction fees. Reducing the transaction fee increases the number of users. Below are some of the items we reviewed:
> 10 Days Before Merge - Total Transactions: 10.7M > > 10 Days After Merge - Total Transactions: 12.9M > > 10 Days Before Merge - Total Average Transactions Per Minute: 752 > > 10 Days After Merge - Total Average Transactions Per Minute: 815 > > 10 days before the Ethereum merge, approximately 218,000 HOP protocol transactions have been processed. > 10 days after the Ethereum merge, with an increase of 12 thousand transactions, the use of Hop has reached 230 thousand transactions. > > 113.7 thousand transactions have been processed for USDC 10 days before the Ethereum merge. > 119.4 thousand transactions have been processed for USDC 10 days after the Ethereum merge. > USDC transactions increased by 0.4% after merge.
Findings
On the left chart, we can see wallet balance of ETH users since days before Merge till today.
The interesting thing is that number of whales (users with more than 100000 ETH balance) is increasing lightly over time and on the oppsite, the number of users who are holding less than 1 ETH is decreasing over time. So, we can conclude most users are buying more and more ETH over time and their balance is increasing over time.
