Overview

NEAR Ethereum on NEAR solution (NETH) is a new solution that allows Ethereum developers to deploy and run their smart contracts on the NEAR blockchain easily. NEAR Protocol has become the first non-Ethereum Virtual Machine (EVM) chain to offer compatibility with MetaMask, a popular web3 wallet used for interacting with decentralized applications (dApps) 1.

This is achieved through the NEAR MetaMask Bridge (NMB), which enables users to connect their MetaMask wallet to NEAR dApps seamlessly. This integration with MetaMask is significant as it allows NEAR Protocol to tap into a broader ecosystem of developers and users, making it easier for them to build and use decentralized applications. The NETH solution is a significant development as it enables Ethereum developers to take advantage of NEAR's scalability and performance benefits while continuing to use familiar tools and interfaces. This means that developers can enjoy faster transaction speeds and lower fees, which are two significant challenges on the Ethereum network.

Overall, the NETH solution and the integration with MetaMask are essential steps towards making decentralized applications more accessible and user-friendly for the broader public.

Methods

In this dashboard will be analyzing the activity of NETH on the NEAR Protocol blockchain. To do this, we will calculate some essential metrics, such as active users, new users, transfers activity, and swapping activity. These metrics will give us a better understanding of how NETH is being used and the level of adoption it is achieving. Analyzing the activity of NETH on the NEAR Protocol blockchain through these metrics will give us valuable insights into its adoption and usage. It will help us understand how NETH is being used, how it is growing, and how valuable it is to its users.

Important key words:

• 1. Active users are users who interact with NETH smart contracts within a specific time frame, such as a day or a week. By tracking the number of active users, we can get an idea of how many people are using NETH and how frequently they are using it. New users are users who interact with NETH smart contracts for the first time within a specific time frame. Tracking the number of new users will give us an idea of how many people are discovering NETH for the first time and starting to use it.
• 2. Transfers activity refers to the number of transfers made using NETH. This includes the number of NETH tokens sent and received on the NEAR Protocol blockchain. By tracking transfers activity, we can get an idea of how frequently NETH is being used to transfer value between users.
• 3. Swapping activity refers to the number of token swaps made using NETH. This includes the number of NETH tokens swapped for other tokens on the NEAR Protocol blockchain. By tracking swapping activity, we can get an idea of how frequently NETH is being used as a means of exchange and how valuable it is to users.

Results 1: Active users

Upon analyzing the active users, it is evident that the majority of NETH activity occurred during its first month of launch in December 2022. Despite low activity from January to mid-February, recent days have shown a noticeable increase in activity, indicating that more users are utilizing the platform. This trend is also reflected in the number of new accounts created, with a total of 65 distinct accounts established thus far.

Results 2: transaction activity

Analyzing the number of transactions involving the NETH map contract, it is evident that a downtrend was observed after the highest weekly number was recorded in the first week of December. The minimum was reached during the final week of January. However, since February, the weekly number of transactions has been gradually increasing again. In total, 70 transactions have been registered involving this contract.

Regarding fees, it can be observed that the amount generated in NEAR directly depends on the number of transactions executed. It appears that the current transaction volume is generating more fees than before. In fact, if we examine the average transaction fee, we can see that an uptrend was observed from December to the final week of January. However, since the peak at the end of January, the average transaction fee has decreased and stabilized at around 0.0006 NEAR.

Results 3: transfer activity

Regarding the transfer activity, it is evident that the majority of registered activity was observed during the first week after launch, with more than 200 transfers incoming and 200 outgoing from the platform. However, activity was subsequently reduced, with practically no activity observed during January. Nonetheless, since February, the number of transfers on both sides has started to increase once again. In general, the netflow of transfers has been negative in the majority of weeks, except for the first one. A total of almost 400 inflow transactions and around 350 outflow transactions have been registered, generating a netflow of almost 50 transactions.

Looking at the NEAR volume transferred, it can be observed that even though more volume exited than entered during the initial stage, the volume has been practically neutral for the rest of the weeks. However, in total, more volume has exited than entered, generating an outflow of +50 NEARs. In fact, even when the ins and outs registered similar numbers at some points, the average volume moved has been higher for outflows than inflows in the rest of the weeks.

Finally, the number of users transferring in and out has remained similar over time.

Results 4: Swapping activity

Finally, analyzing the swapping activity, it is evident that the platform is not being used extensively for swapping tokens. While there were only 4 weeks with registered activity, the number of swaps and active swappers is also low. In fact, the highest numbers were registered during the first week, where only 8 swaps were performed by 4 unique swappers.

Among the tokens being swapped, wNEAR is the most commonly swapped token, with a significant difference from the others. In terms of tokens acquired, the most preferred token has been wNEAR as well, followed by REF and Marmaj.

Key insights

• a) Majority of NETH activity occurred during its first month of launch in December 2022
• b) Recent days have shown an increase in activity, indicating more users are utilizing the platform
• c) 65 distinct accounts have been established so far
• d) Downtrend observed in the number of transactions involving the NETH map contract after the highest weekly number was recorded in the first week of December, reaching a minimum during the final week of January. Since February, the weekly number of transactions has been gradually increasing again
• e) Amount generated in NEAR directly depends on the number of transactions executed, with current transaction volume generating more fees than before
• f) Majority of registered transfer activity observed during the first week after launch, followed by a period of reduced activity in January. However, since February, the number of transfers on both sides has started to increase again. Inflow transactions totaling almost 400 and around 350 outflow transactions have been registered, generating a netflow of almost 50 transactions
• g) More volume has exited than entered, generating an outflow of +50 NEARs
• h) Number of users transferring in and out has remained similar over time
• i) Platform not being used extensively for swapping tokens, with only 4 weeks with registered activity, and the highest numbers being registered during the first week, where only 8 swaps were performed by 4 unique swappers
• j) wNEAR is the most commonly swapped token, and the most preferred token acquired, followed by REF and Marmaj.

How it works?

NETH is a smart contract deployed on the NEAR blockchain that allows users to use Ethereum accounts (such as MetaMask) to interact with dApps on the NEAR blockchain. It requires only 0.5 $NEAR to create the account and deploy the NETH Contract. If a user loses access to the local storage of the website during the setup process, they may lose access to the funds used to set up the NETH account.

Once set up, users have the option to disconnect the account and walk away with a seed phrase to a NEAR Native account. This allows users to use any NEAR Wallet by importing the seed phrase. NETH includes headers, receiver IDs, and size information in the transaction payload to increase legibility and security and to minimize the chances of malicious tampering with transaction details. The aim of NETH is to combine the capabilities of the NEAR blockchain with the familiarity, user experience, and battle-tested track record of Ethereum's wallet ecosystem. NETH works with most Ethereum wallets because it is a smart contract entirely on the NEAR side, not an official integration by the MetaMask team.