Try Quests to earn SOLOpen Analytics Bounty: Solana (December 3)
Dashboard Topics : Gas
goal of these dashboard is tracking generated gas fee in Solana blockchain. next compare Solana with other blockchains contain Ethereum, Polygon, Algorand, Flow, NEAR, Optimism, Arbitrum and Osmosis.
data of transaction are only for 2022.
some of question that answered in this dashboard are
- Total amount USD of gas spent on the Solana and others.
- Average Transaction cost.
- Average block gas price hourly and daily
- The top 10 addresses on each chain that spend the most on gas
- Daily amount spent on gas
- Chart gas spend to network token price
Introduction:
What Is a Gas Fee on NFTs?
Gas fee is a commonly used term for the cost that certain blockchain protocol users pay to network validators each time they wish to perform a function on the blockchain.
Gas serves as an incentive for network validators to record transactions accurately and behave honestly in the upkeep of the protocol.
While Ethereum and Polygon use the term “gas fees,” other blockchains such as Solana and Bitcoin use the term “transaction fees.” “Gas” comes from the fee’s similarity to the fuel which keeps a vehicle running.
On proof-of-work (PoW) blockchains such Ethereum before The Merge, gas fees are paid by end users to the miners for validating their transactions. Miners compete using specialized computing equipment to generate random codes called hashes. The first miner able to randomly generate a cryptographic hash starting with the same number of zeroes (or more) compared to the “target hash” is declared the winner.
The successful miner can then fill the new block with pending transactions. This earns the miner newly created cryptocurrency distributed from the block reward and any fees attached to those transactions.
Gas fees are also important in blockchain protocols using the proof-of-stake (PoS) consensus mechanism, such as Ethereum after The Merge, Solana, Polygon and etc. On these blockchains, gas fees reward validators who first commit a certain amount of cryptocurrency to the network in order to be selected to verify new transactions (in most of them next validator selected by network protocol and don’t need extra powerful hardware to calculate faster than other to get block reward). Those who lock away more coins can run more validators, making them more likely to be selected to validate new transactions than those who commit fewer coins. However, some programmatic randomness at the protocol level means this isn’t guaranteed and validators with fewer coins can still be selected to validate transactions and earn the block reward.
Solana:
Solana is a decentralized, open source, and distributed computing platform that enables the creation of smart contracts and decentralized applications, also known as dapps. Solana has had many ups and downs in 2022. rise of NFTs in Solana, Solana phone, Neon and prepare for support new language other than Rust are some of these ups. lot’s of outage and dropping price after FTX fall are some of these downs. let’s first see what happened in generated fee on Solana and then compare to other blockchain to see is this Just for Solana or happened on all blockchains
Solana Vs Others
this charts show clearly view from status of Crypto in 2022 , the goal of this part is compare Solana vs other blockchains to see how is status of Solana rather than other blockchains.
the noticable thing about this chart is Ethereum by far has much higher generated fee and so in about all of condition Ethereum is on top thus i compare condition of network in end of year with start of year
Methodology:
this dashboard contain two main part.
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compare Solana with other 8 largest blockchains in terms of gas spent. Blockchains are included Ethereum, Polygon, Algorand, Flow, NEAR, Optimism, Arbitrum and Osmosis.
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review Solana network alone and will see what happened on Solana in 2022.
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The following metrics show in each blockchain section:
- Daily fee spent in USD - sum the fees of all the transactions made in the desired blockchain every day. The unit of fees is the native token of their network (except for Optimism and Arbitrum, which is ETH). So to get USD we have to multiply by the average price of the token on the same day.
- Average of total fee spent on Ethereum each day and hour - sum the fees of all transactions made in the desired blockchain by day of the week and hour. Then, we get the average fee spent per hour of the weekdays. In this way, we know what days and hours the network is congested.
- Hourly fee spent per block in USD - sum the fees of all transactions made in the desired blockchains every block. Then, get the average of them per hour.
- Top 10 addresses that spend the most fee - sum the total fee made by each wallet. Then find the top 10. I tried to figure out owner of these wallets too.
Key finding:
Total fee in USD spent: Ethereum > Polygon > Optimism > Arbitrum > Solana > Near > Osmosis > Algorand > Flow
Average transactions fee in USD spent: Ethereum > Optimism > Arbitrum > Polygon > Near > Osmosis > Algorand > Solana > Flow
Median transactions fee in USD spent: Ethereum > Optimism > Arbitrum > Polygon > Near > Osmosis > Algorand > Solana > Flow
Average fee in USD spent per $1,000,000 of liquidity transferred: Ethereum > Optimism > Polygon > Arbitrum > Osmosis > Near > Flow > Solana > Algorand
Average blocks fee in USD spent: Ethereum > Polygon > Optimism ~ Arbitrum > Near ~ Solana ~ Algorand > Flow
Daily Block Fee
1 Jan 2022 : 0.42
5 Dec 2022 : 0.01
the story is simple. very large drop in block fees, it is about 42x drop and shows Solana has serious problem.i am not saying fee is good and fee should be high but in start of 2022 Solana don’e have high fee and this drop show lower transaction rather than upgrade in Solana. there is some drop in Jan but this drop for days Solana goes down and network was down for couple of hour. also in Nov there is some spike, this spike happened in FTX fall and then Solana price drop and show during first day of FTX fail there is lot’s of activity ( mostly sell ) and liquidity in Solana Option and Margins but we see after first day block fee goes lower and lower.
Daily Fee
same pattern like Daily block fee with same drop and spikes. but with seeing this chart we can divide chart into 3 part
- Jan until May : clear see in these 4 month Solana loosing Fee and falling down
- May until Oct : in this 5 months we see Solana had stable Daily Fee and spends peaceful conditions
- Oct until now : in this month again Fee drop and after 5 month calm again war started :grinning:.
Fee According Day and Hour
this chart clearly shows what time is rush hour of Solana and as data shows
- in Wednesday and Tuesday Solana has high traffic and in Friday has lowest traffics.
- according Color and data seems Hour 9 utc is most traffic Hour and Hour 22 with lowest traffic.
- seem hour between 0-12 has much higher traffic 12-24
The slope of the tangent line in the cumulative graph indicates the intensity of the value increase.in simpler words, the more horizontal the cumulative chart is, it indicates that it is increasing from a lower amount than in the past, and the more vertical the chart is, it indicates that it is increasing at a faster rate than in the past.now if see Cumulative fee chart clearly as time goes the slope of the tangent line decreasing and each day less fee generated that other days.
after seeing the static about other blockchains seems Solana not alone and other blockchain like Near or Flow don’t have better state than Solana. some L2 like Optimism and Arbitrum has lower fee rather than start of year but this lower fee came from update of the L2s and they reduce generated fee on their blockchains. data clearly show in Q3 and specially in Q4.Bears dominated the market and we see fewer users using blockchains and fewer transactions are generated. ( best way to compare with other is in each chart you can click on blockchain in name of blockchain and to toggle static of this blockcahin in chart and filter and compare blockchain as you want)
Conclusion
- Solana has strong user and amount of generated fee in start of 2022 but as times goes this generated fee reduced
- if see Solana as it self, we see Solana had bad situation in 2022 but when compare to other blockchain clearly see Solana isn’t the worst
- one of golden point of Solana is less change in daily average transaction on each blockchain for is high TPS and powerful code execution layer
- Flow has lowest transaction fee among of all of this blockchain and Ethereum has highest
- seems Ethereum and Ethereum L2s generated 99.75 of total transaction fee and other blockchain only generate 0.25% of fee ( Solana,Near,Flow,Algorand,Osmosis )
- while osmosis has option for doing transaction without paying fee, generate more fee than Flow
as compare total generated fee Ethereum and Ethereum L2s and sidechains have highest generated fee. as data shows Ethereum, Polygon , Optimism and Arbitrum contain 99.75% of total fee and Solana only create 0.11% fee. but from daily side Ethereum L2s ( Optimism , Polygon , Arbitrum ) has lower drop from start of year but other blockcahin has big drop Ethereum from about 40M$ to 2M$ and Solana from about 60K$ to 2K$ , Near from 20K$ to 1K$ and … . as data shows fee drop not only for Solana but aslo for all blockchain industry and seem Crypto market don’t have good condition ( the real is global economy also don’t have good condition after COVID-19 )
Ethereum with having multiple L2 and side chain and lot’s of EVM compatible blockchain steal generate very high fee. from about about 117 M generated fee Ethereum geenrate 115.2 M$ fee and this very high value while Solana only create less than 200K$.
at the end of this article i describe how can find growth speed in Cumulative chart but as we see as time goes all chart going horizontal and this shows speed of generated fee going to lower and lower. pattern of all blockchain are same each other and only different of these blockchains came from some event that happened on each blockchain and make some spike or for some days lot’s of new user use blockchain and after that day again came back to old state.
Solana while have second user base in all blockchains but from median of transaction has second place and end and after Flow has lowest transaction fee. this low fee help user to easier do transaction and fell in real life while high transaction make other blockchain hard to be like real money and prevent people to using for daily payment. but also this low transaction make problem in decentralized world and we see lot’s of outage specially in Q1 of 2022 but still Solana has lot’s of opportunity for be blockchain for daily payment
when number of transaction is higher than number of user there is queue that user sort according this amount of fee paid to network. so if number of transaction goes up people for doing transaction faster need pay higher than before so we see as start of year higher fee paid to network and as times goes and lower user use blockchains average transaction dropped dramatically. also we should notice the point that in blockchains like Solana that so much transaction per second and this queue is so much smaller and most of transaction done in less than second (or event couple of second ) this fee don’t change during time but in other blockchains specially in EVM compatible this average fee change so much.