Question in detail:

Let’s explore some key indicators of the health of the Web3 industry.

1. Project ETH supply growth for 2023 by using various average gas prices.
2. What is the highest value DEX swap, by protocol?
3. Where was there the most DEX swaps by protocol?
4. Which were the highest gas consuming NFT mints?

Overview of analysis:

In short, Web3 is a set of decentralized applications that run on the blockchain and the Ethereum network. Every user around the world has access to Web 3.0 and is allowed to use network services.

The importance of Ethereum network on web3 and its future determined through this investigation. The gas price price on Ethereum and major sectors of this blockchain have been used to draw a pattern of ETH on web3 in 2023.

This dashboard divided into the following parts:

• Gas price and paid fee in ETH
• Swap and DEX activity by protocols on Ethereum
• ETH supply for mints on Ethereum

Methodology:

The data provided by Flipside has been used to handle this analysis. To handle this investigation the following steps have been passed as below:

• Step 1: Gas price and paid ETH as fee on Ethereum
  • Metrics→
    • Min, max and average gas price during 2022
    • Paid fee in ETH on 2022
• Step 2: DEXs and swap activity by platforms on Ethereum
  • Metrics→ share of DEXs, maximum size of swaps by protocols, total and average paid fee on protocols, average and median size of swaps by protocols
• Step 3: NFT mints and paid Gas
  • Metrics→ Top projects with highest Gas consume for mints, stats related to mint activity in 2022
• Conclusion: By aggregating the outcomes of the previous parts draw a conclusion about the Ethereum Gas and paid fee on various sectors and draw determine its impacts on web3.

The time basis of network could be selected by reader and by default is set to weekly basis.

About Web3 and Ethereum network:

The third generation Internet or Web3 is a new idea for expanding the global Internet. The structure of this internet is based on blockchain technology and has features such as decentralization and economy based on tokens. The main goal of experts to create the third generation Internet or Web 3.0 is to decentralize the Internet. Web 3.0 has unique characteristics, but it emerged to decentralize the Internet. This means that the Internet is universal and the people of the world can use it, but its management and control is not concentrated in the hands of certain institutions or individuals. Currently, the management of the Internet is in the hands of governments and large technology companies, but Web 3.0 is one of the basic needs in the field of technology that we will witness in the near future. Many famous blockchain projects that are active today are among the subsets of this technology. Due to the use of smart contracts in blockchain, the need for intermediaries in its transactions has been eliminated. All the activities that take place in the blockchain are controlled by the programming codes of smart contracts. For this reason, human supervision in these activities has reached its minimum value.

The Ethereum blockchain as an important part of web3 has huge impact on how this new world shaped and will be organized in near future.

Part 2: Swap and DEX activity

Part 3: ETH supply for mints

Findings:

• DEXs play important role on Ethereum network and can be used to determine the application of network.
• The Uniswap platform dominated the share of swap platforms on Ethereum in 2022 by considering swap count.
• The largest swap size on Ethereum belong to Curve platform with near 70 million USD and Uniswap V3 takes the second rank.
• The average paid fee for swaps on platforms shown the superiority of Synthetix with over 0.0286 ETH.
• Due to the congestion of network and PoW structure before merge, the average swap fee was high in the first months.

Findings:

Now lets focus on the one of the important part of Ethereum network and its NFT mints:

• The count of mints and unique minters increased over time since start of 2022.
• The highest volume of mints in ETH and USD happened on June 13 to 20 as can be seen.
• On September 5 to 12 the highest count of NFTs were minted with over 773k NFTs.
• About 2464 unique projects have been minted in the second week of January and its the largest group of projects.
• On the third week of February, the highest value of average paid fee for mints occurred with over 0.23 ETH.

Part 2-1: Projects with highest paid fee for mints

Part 1: Gas price and paid fee in ETH

Smart contracts in the Ethereum network are actually a series of computer codes that perform a series of operations automatically if all conditions are met. These codes are commands that are executed by the computer. This means that when a smart contract is executed, it consumes processing power and someone has to pay for that processing power.

To calculate the transaction fee in the Ethereum network, you must multiply the Gas limit by the Gas price.

The interesting thing about Ethereum is that each command code has a fixed and predetermined Gas limit that you cannot change. In fact, this gas limit is determined based on the type of smart contract and the amount of codes of a smart contract. The amount of gas cannot be entered less than Gas limit, in this case the transaction will not be checked. However, the price of Ethereum gas or fuel is determined by the users and its amount varies at any time. When a smart contract is executed, you decide how much you are willing to pay for each unit of gas.

A user who intends to make a transaction and execute a smart contract, decides what price to pay for the gas required to execute that smart contract. Gas Price is the cost that a user is willing to pay for each The unit of gas payment is the unit of gas price, Jiwe or Gwei. Ethereum wallets usually automatically set a reasonable Gas Price that can be changed by the user.

In fact, the fee you pay for a transaction is equal to the amount of gas needed to execute the transaction, which must not be less than the Gas Limit, multiplied by the Gas Price or the amount of ether you are willing to pay for each unit of gas, whose unit is Gwei Is.

Findings:

This part is used to determine the Gas price on Ethereum network during 2022:

• The average, min and max Gas price chart is used to understand the shape of Gas price in 2022. For this purpose and as can be seen, the maximum value of Gas price spiked on special weeks like August 22 to 29.
• As mentioned earlier, the paid fee is strongly dependent to Gas price and Gas limit on Ethereum network. This correlation can be seen in the average, min and max paid fee in ETH chart accordingly.
• The chart related to weekly and cumulative paid fee in ETH reveals the spikes on special dates. For example, the highest paid fee occurred on the third week of January. Also, the cumulative chart demonstrates that the total paid fee in ETH is over 1.74 million ETH so far.

Conclusion:

• Blockchain activities are very transparent and any member does an activity, other members can see it. It can be seen that many of the characteristics that experts are looking for in the development of Web 3.0 are present in blockchain technology.
• The number of Ethereum applications is huge, so that today many platforms that can run on Web 3.0 are located on the Ethereum network. As an example of the Ethereum loan project based on Defi, performing cryptocurrency exchanges with decentralized exchanges on the Ethereum network, participating in the management of decentralized independent organizations or DAOs, using blockchain-based games, and several other practical projects. which are increasing.
• Also, web3 is heavily based on NFTs, cryptocurrencies and other blockchain products. For example, Reddit is trying to establish a mechanism to deploy cryptocurrencies on the web and allow users to control parts of communities.

Useful links:

• About web3
• Ethereum Gas price
• NFTs and DEXs on Ethereum

Author:

Credited by MZG

Discord handle: m.zamani#0361

Twitter handle: @GargariZamani

Findings:

In this sub section, the top NFT projects with highest consuming GAS for mints have been evaluated:

• The Tubby Cats and Otherside are two of the NFT projects with highest paid fee for mints on Ethereum in 2022.
• The average paid fee for NFT mints on Tubby Cats is far greater than other NFT projects in 2022.
• Among these top NFT projects with higher consuming gas, the ENS NFT project has the highest count of NFTs with over 2.26 million minted NFTs. Also, this NFT projects has the highest volume of mints in ETH and USD among top NFT projects on Ethereum.
• The Otherside NFT project which has the second rank between most Gas consuming NFT projects has been minted by over 41.6k unique minters and takes the lead for highest count of minters.