Description of work

In this dashboard, we want to analyze the behavior of users before and after the Merge event.

This dashboard includes the following sections:

1. Introducing Merge event

   • 1 - 1 What is the Merge?

   • 2 - 1 Why is it called a Merge?

   • 3 - 1 How does proof-of-stake (PoS) differ from proof-of-work (PoW)?

   • 4 - 1 When did the Merge happen?

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2. Analyzing Transactions

   • 1 - 2 Number of transactions

   • 2 - 2 Number of Active Addresses

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3. Analyzing Swaps

   • 1 - 3 Number of swaps

   • 2 - 3 Number of Active Addresses

   • 3 - 3 Volume of swaps to Ether

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4. Analyzing NFTs

   • 1 - 4 Number of NFT Sales

   • 2 - 4 Volume of NFT Sales

   • 3 Number of Active Addresses

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5. Analyzing the volume of Ether staked in ETH 2.0

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6. Conclusion

1 - Introducing Merge event

1 - 1 What is the Merge?

The Merge represents the Ethereum network’s shift to proof-of-stake (PoS), its new system (also called a “consensus mechanism”) for authenticating crypto transactions. The new system replaces proof-of-work (PoW), the more power-hungry mechanism pioneered by Bitcoin.

2 - 1 Why is it called a Merge?

Ethereum already has a PoS network called the Beacon Chain (introduced in 2020), but it is not yet used for processing transactions. For now, it’s essentially just a staging area for computers operating the Ethereum network to prepare for the PoS upgrade.

Ethereum’s full transition to PoS requires merging the Beacon Chain (called the “Consensus” layer) with Ethereum’s PoW mainnet (the “Execution” layer).

3 - 1 How does proof-of-stake (PoS) differ from proof-of-work (PoW)?

Proof-of-stake (PoS) and proof-of-work (PoW) differ in how they decide who has the right to record the next “block” of transactions on the network.

In the PoW system, Ethereum miners compete to publish blocks by racing to solve cryptographic puzzles, much like in Bitcoin.

In the current PoS system, validators that stake (lock up) at least 32 ether (~$50,000) with the network are randomly selected to create blocks. The more ether one stakes, the more likely one is to be selected.

In both systems, the miner/validator that wins a block is rewarded with a mix of transaction fees and newly minted ether (ETH). PoS validators also receive rewards for doing other activities to help secure the network.

4 - 1 When did the Merge happen?

The Merge didn't have a hard date and time it would finally occur. Here's why: each block on Ethereum’s PoW network carries a difficulty number representing how hard miners must work to add it to the network. Instead of kicking in at a specific date, the Merge was scheduled to take effect once the cumulative difficulty of all mined Ethereum blocks hits a certain number – the “total terminal difficulty” (TTD).

In August, Ethereum’s core developers set the TTD at 58,750,000,000,000,000,000,000, which was reached Sep-15-2022 06:42:59 AM +UTC

Source: coindesk.com

• The time period considered to compare the behavior of users is 1 week before the Merge event and 1 week after the Merge event.
• September 15, 2022, is considered the date for switching from PoW to PoS.

2 - Analyzing Transactions

Methodology

• For calculations of this section, we used data of [ethereum.core.fact_transactions] table.

1 - 2 Number of transactions

✔️Observations

• The highest number of daily transactions was recorded on September 17th (1.318M transaction), 16th(1.311M transaction), and 15th (1.265M transaction), respectively. (the first 3 days of Merge).

• After Merge, the number of daily transactions has increased slightly.

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• The number of transactions 1 week after Merge (8.44M transaction) has increased by 6.2% compared to the number of transactions 1 week before Merge (7.46M transaction).

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• The average number of daily transactions 1 week before Merge equals 1.067M transactions.

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• The average number of daily transactions 1 week after Merge equals 1.206M transactions.

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2 - 2 Number of Active Addresses

✔️Observations

• The highest number of daily active addresses was recorded on September 16th (761.93K active addresses), 17th (760.38K active addresses), and 15th (750.84K active addresses), respectively. (the first 3 days of Merge)

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• After Merge, the number of daily active addresses has increased slightly.

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• The number of active addresses 1 week after Merge (2.694M active addresses) has increased by 8.4% compared to the number of active addresses 1 week before Merge (2.274M active addresses)

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• The average number of daily active addresses 1 week before Merge equals 597K active addresses.

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• The average number of daily active addresses 1 week after Merge equals 647K active addresses.

3 - Analyzing Swaps

Methodology

• For calculations of this section, we used data of [ethereum.core.ez_dex_swaps] table.

1 - 3 Number of swaps

✔️Observations

• The highest number of daily swaps was recorded on September 21th (116.665K swaps), 13th (114.825K swaps), and 19th (112.548K swaps), respectively.

• The number of swaps 1 week after Merge (736.872K swaps) has increased by 1.6% compared to the number of swaps 1 week before Merge (713.113K swaps), which is a small amount and can be ignored.

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• The average number of daily swaps 1 week before Merge equals 101.9K swaps.

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• The average number of daily swaps 1 week after Merge equals 105.3K swaps.

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2 - 3 Number of Active Addresses - Swaps

✔️Observations

• The highest number of daily active addresses in swaps was recorded on September 15th (36.345K active addresses), 13th (35.984K active addresses), and 19th (35.048K active addresses), respectively.

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• The number of active addresses in swaps 1 week after Merge (151.179K active addresses) has increased by 2.6% compared to the number of active addresses in swaps 1 week before Merge (143.679K active addresses), which is a small amount and can be ignored.

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• The average number of daily active addresses in swaps 1 week before Merge equals 33K active addresses.

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• The average number of daily active addresses in swaps 1 week after Merge equals 33.8K active addresses.

1 - 4 Number of NFT Sales

✔️Observations

• The highest number of daily NFT sales was recorded on September 18th (62.813K sales ), 19th (59.292K sales), and 20th (58.927K sales), respectively. (Days after Merge)

• After Merge, the number of daily NFT sales has increased slightly.

• The number of NFT sales 1 week after Merge (368.455K sales) has increased by 7.2% compared to the number of NFT sales 1 week before Merge (318.539K swaps).

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• The average number of daily NFT sales 1 week before Merge equals 45.5K sales.

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• The average number of daily NFT sales 1 week after Merge equals 52.6KK sales.

2 - 4 Volume of NFT Sales

✔️Observations

• The highest volume of daily NFT sales was recorded on September 13th ($37.364M), 8th ($36.511M), and 12th ($35.888M), respectively.

• After Merge, the volume of daily NFT sales has decreased slightly.

• The volume of NFT sales 1 week after Merge ($217.573M) has decreased by 5.4% compared to the volume of NFT sales 1 week before Merge ($242.241M).

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• The average volume of daily NFT sales 1 week before Merge equals $34.6M.

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• The average volume of daily NFT sales 1 week after Merge equals $31.1M.

3 - 4 Number of Active Addresses

✔️Observations

• The highest number of daily active addresses in NFT sales was recorded on September 20th (57.656K active addresses), 19th (54.586K active addresses), and 18th (53.634K active addresses), respectively. (Days after Merge)

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• The number of active addresses in NFT sales 1 week after Merge (165.220K active addresses) has increased by 2.4% compared to the number of active addresses in NFT sales 1 week before Merge (156.875K active addresses), which is a small amount and can be ignored

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• The average number of daily active addresses in NFT sales 1 week before Merge equals 47.6K active addresses.

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• The average number of daily active addresses in NFT sales 1 week after Merge equals 51.2K active addresses.

3 - 3 Volume of swaps to Ether

5 - Analyzing the volume of Ether staked in ETH 2.0

Methodology

• For calculations of this section, we used data of [ethereum.core.ez_eth_transfers] table.
• Eth2 Deposit Contract: 0x00000000219ab540356cbb839cbe05303d7705fa

✔️Observations

• The highest volume of daily swaps to Ether was recorded on September 13th ($745.184M), 15th ($635.470M), and 14th ($545.989M), respectively.

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• After Merge, the volume of daily swaps to Ether has decreased slightly.

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• The volume of swaps to Ether 1 week after Merge ($2.927B) has decreased by 8% compared to the volume of daily swaps to Ether 1 week before Merge ($3.431B)

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• The average volume of daily swaps to Ether 1 week before Merge equals $490M.

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• The average volume of daily swaps 1 week after Merge equals $418M.

4 - Analyzing NFTs

Methodology

• For calculations of this section, we used data of [ethereum.core.ez_nft_sales] table.

✔️Observations

• The highest volume of daily Ether staked in ETH2.0 was recorded on September 12th ($93.323M), 15th ($38.213M), and 9th ($29.01M), respectively.

• After Merge, the volume of daily Ether staked in ETH2.0 has decreased significantly.

• On September 12, 2022, the volume of Ethers stacked increased significantly.

• The volume of staked Ether 1 week after Merge ($114653M) has decreased by 19.8% compared to the volume of daily staked Ether 1 week before Merge ($171.574M).

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• The average volume of daily staked Ether 1 week before Merge equals $24.15M.

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• The average volume of daily staked Ether 1 week after Merge equals $16.38M.

6 - Conclusion

In this dashboard, we analyzed the behavior of users one week before and one week after the Merge event, and the following results were obtained:

• The number of transactions==(+6.2%)==, the number of active addresses ==(+8.4%),== and the number of sales of NFTs ==(+7.2%)== have ==slightly increased== 1 week after Merge compared to 1 week before Merge.

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• The number of swaps ==(+1.6%)==, the number of active addresses in swaps ==(+2.6%)==, and the number of active addresses in NFT sales ==(+2.4%) did not change significantly== 1 week after the Merge compared to the 1 week before the Merge.

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• The volume of NFT sales ==(-5.4%)== and the volume of swaps to Ether ==(-8%)== have ==slightly decreased== 1 week after Merge compared to 1 week before Merge.

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• The volume of staked Ether decreased significantly ==(-19.8%)== 1 week after Merge compared to 1 week before Merge.

• On September 12, 2022, the volume of Ethers stacked increased significantly.