ETH Flash Bounty: What’s Next?

    Introduction

    • In This Analysis, You Will read about the trends or events after the Merge. The Merge has come and gone — what will be the next story, trend, or outlier to dominate the ETH space?

    • I read Vitalik's tweet about the Ethereum Merge and I found there will be some events after the Merge.

      • One of the trends after the merge will be Staking ETH to be an Ethereum Validator. I took a look at direct staking on Ethereum.
      • I read Ethereum Roadmap and I found the next big event for Ethereum will be The Surge. ge" refers to Ethereum introducing systems that will make the network more expandable (scalable) by enabling the creation of layer 2, or companion, products, including sharding and rollups, and therefore making it easier for users to operate on the Ethereum network.


      Analyzed By Hess - Reading Time Almost 8 Min.

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    Method

    This analysis is divided into three main categories.

    1. Staking on Ethereum
    2. The Surge ( Transactions )
    3. The Sure ( Fees )
    • For the first part, Staking, I used the Ethereum direct staking. The Ethereum stake contract address is 0x00000000219ab540356cbb839cbe05303d7705fa. From the Transfer ETH table, I used the Stake contract address ‘to address’ and extracted all staking activities. You may know that users need 32 ETH to become validators on Ethereum after the Merge.
    • For the second and the third part, I used a transaction table on Ethereum, Arbitrum and Optimism. As I mentioned, The next big update for Ethereum is the Surge. The surge will use layer 2 capacity to make it easier to operate on Ethereum by increasing transactions per second and lowering the Chain fees.

    Become Validator ( Stake 32 ETH on Ethereum )

    • As you can see, After September 15, The total number of wallets and stake transactions increased. On September 15, The merge happened. In the last 30 days, 3170 wallets were staked 10K times. After the merge, Staking ETH on the Ethereum stake contract address means you become a validator and you can earn rewards.
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    The Surge - Transactions

    • We already know that the next big update of the Ethereum chain will be The Surge. Ethereum will use layer2s chain to improve transactions and lower the fees. I compared these chains together before the next big Event. The average number of transactions on Ethereum is 1.12M, On Arbitrum is 373K and on Optimism is 174K. However, The total number of transactions increased on Ethereum, Arbitrum and Optimism after the merge.
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    The Surge - Fees

    • Everyone in the crypto world knows that Ethereum fees are high. As The surge roadmap shows, Ethereum will use Layer2s to decrease fees. Right now we can’t compare Ethereum fees with Optimism and Arbitrum. The difference is too high. Decreasing Ethereum fees will next trend.
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    A Summary of the most important findings

    • Staking ETH on Ethereum could be the next trend.
    • The total number of stake transactions and wallets increased after the Ethereum Merge.
    • The Daily ETH amounts increased after the Merge. In the last 30 days, About 336K ETH was staked which is worth 502M US dollars.
    • As you know, The average staked ETH amount is 32 ETH but because of the ETH price, The average staked ETH in USD is 47K US dollars. At the beginning of the month was 50K US dollars.
    • Ethereum has about 1-1.1M daily transactions right now. Arbitrum and Optimism have fewer transactions in comparison to Ethereum. The average daily number of transactions on Arbitrum is 373K and Optimism is 174K. However, These numbers increased after the Ethereum Merge.
    • After the Surge event, Ethereum will use Layer2 chains to make operations easier.
    • The average number of transactions per second on Ethereum is 13, On Arbitrum is 4 and on Optimism is 2.
    • The surge will help Ethereum to decrease the fee amount by using layer2 chains.
    • In the last 30 days, The average fee on Ethereum was 0.0014 but Optimism and Arbitrum were much lower than this.
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    Full Analysis

    • Each Day, a huge amount of ETH is staked on the Ethereum. In the last 30 days, nearly 336K ETH was staked which is worth 502M US dollars. Due to the ETH price, The daily staked ETH in USD decreased but the ETH amount increased.
    • As you know, Users should stake 32 ETH on Ethereum to become a validator. The average staked ETH was 32 but because of ETH price, The average staked ETH in USD was 47K us dollars. After the Merge, The ETH amount in US dollars reached 41K.

    The Surge will increase the Ethereum chain's capability to operate 100K transactions per second. Right now the average number of transactions per second on Ethereum is 13 transactions, On Arbitrum is 4 transactions and on Optimism is 2 transactions.

    Conclusion

    • I can’t talk about the future of Ethereum right now but what is clear is Staking on Ethereum will be the next trend on this chain. Becoming a validator on BTC or Ethereum was or is a trend for almost 10 years. Around the world, many users have bought expensive hardware to mine ETH or BTC. Right now users should buy and stake ETH to become Ethereum validators.
    • Fees on Ethereum are the next important issue. The surge will help the Ethereum chain to decrease fees by using Layer2s. We already know that Polygon or Solana chains have fewer fees and the number of transactions on these chains is much higher than on Ethereum. So Ethereum needs the surge to handle upcoming events.

    THANK YOU FOR READING!

    ALL CODES AND CONTENTS WERE WRITTEN BY HESS.

    :bird: Twitter: @hessaminanloo

    :t-rex: Discord_id: hess#0890

    :calendar: Analyze Date: 2022/OCT/03