Introduction

What Is Ethereum?

At its core, Ethereum is a decentralized global software platform powered by blockchain technology. It is most commonly known for its native cryptocurrency, ether (ETH).

Ethereum can be used by anyone to create any secured digital technology. It has a token designed to pay for work done supporting the blockchain, but participants can also use it to pay for tangible goods and services if accepted.

Ethereum is designed to be scalable, programmable, secure, and decentralized. It is the blockchain of choice for developers and enterprises creating technology based upon it to change how many industries operate and how we go about our daily lives.

It natively supports smart contracts, an essential tool behind decentralized applications.1 Many decentralized finance (DeFi) and other applications use smart contracts in conjunction with blockchain technology.

Learn more about Ethereum, its token ETH, and how they are an integral part of non-fungible tokens, decentralized finance, decentralized autonomous organizations, and the metaverse.

The Future of Ethereum

Ethereum’s transition to the proof-of-stake protocol, which enables users to validate transactions and mint new ETH based on their ether holdings, is part of a significant upgrade to the Ethereum platform. Previously called Eth2, this upgrade is now referred to only as Ethereum. However, Ethereum now has two layers. The first layer is the execution layer, where transactions and validations occur. The second layer is the consensus layer, where attestations and the consensus chain are maintained.

The upgrade added capacity to the Ethereum network to support its growth, which will eventually help to address chronic network congestion problems that have driven up gas fees.

To address scalability, Ethereum is continuing development of "sharding." Sharding will divide the Ethereum database amongst its network. This idea is similar to cloud computing, where many computers handle the workload to reduce computational time. These smaller database sections will be called shards, and shards will be worked on by those who have staked ETH. Shards will allow more validators to work at the same time, reducing the amount of time needed to reach consensus through a process called sharding consensus.

Overview of this article

In this article, we will focus on finding evidence of any potential causes for ETH's struggle and whether there any other factors that could help us predict how it could recover. For this purpose, we will discuss this issue in five chapters focusing on staking/unstaking status.

These chapters are:

1- Token Price

2- ETH Swapping

3- Investigation of ETH Transfer

4- Transfer ETH To/From CEX

Methodology

For this dashboard all data are extracted from Flipsidecrypto tables.

To extract token price data “crosschain.core.fact_hourly_prices" table will be used.

To extract ETH swaping' data “ethereum.core.fact_hourly_token_prices“ table will be used.

To extract ETH transfer data “ethereum.core.ez_eth_transfers “ table will be used.

1- Token Price

Chart insights

First, charts has been drawn to compares the price changes of different tokens relative to each other and relative to their price in Nov. 1. The prices of all of them have decreased except MATIC and LTC, but the biggest decrease is related to SOL.

Ethereum had a relatively small increase in the first seams, but after November 6th, its price decreased.

The reason for the decrease in token prices can be related to the collapse of FTX.

The price of Ethereum decreased by 33% and reached $1159.

Chart insights

In the charts above, the price of the Ethereum token has been compared with 9 different tokens. The interesting point in all of them is the peak that can be seen between October 25th and November 9th.

In this period, the collapse of FTX happened, which had a direct impact on the price of all tokens.

FTX’s collapse shook the volatile crypto market, which lost billions in value, dropping below $1 trillion.

The consequences of FTX’s rapid decline and collapse will likely impact cryptocurrencies well into the future and could even drag down broader markets.

Chart insights

According to the Changes in Swaps and ETH price chart, the number of swaps has increased sharply after the drop in Ethereum price. But after that, it has decreased more than before November 7th.

The number of swappers has increased as well as the number of swaps.

In the period from November 7th to 9th, the volume of swaps has multiplied, which coincides with the decrease in the price of Ethereum.

3- Investigation of ETH Transfer

4- Transfer ETH To/From CEX

Chart insights

The ETH Transfer per Date chart shows that before October 9, most of the transfers were less than $10, but after that, higher amounts were transferred.

On average, the most transfers are between $10 and $100, and only 2.1% were more than $10k.

Until October 9, the most transfers were to Cex and the least to dapp, but after Oct. 9, transfers to Cex decreased sharply. and increased to dapp.

From Oct. 20th, the transition to layer 2 can be seen.

In general, after October 20, the transfers have decreased sharply.

In the last 60 days, the most transfers were to Dex and Cex.

Conclusion

First, charts has been drawn to compares the price changes of different tokens relative to each other and relative to their price in Nov. 1. The prices of all of them have decreased except MATIC and LTC, but the biggest decrease is related to SOL.

The reason for the decrease in token prices can be related to the collapse of FTX.

In this period, the collapse of FTX happened, which had a direct impact on the price of all tokens.

FTX’s collapse shook the volatile crypto market, which lost billions in value, dropping below $1 trillion.

The consequences of FTX’s rapid decline and collapse will likely impact cryptocurrencies well into the future and could even drag down broader markets.

The price of Ethereum decreased by 33% and reached $1159.

The number of swappers has increased as well as the number of swaps.

In the period from November 7th to 9th, the volume of swaps has multiplied, which coincides with the decrease in the price of Ethereum.

The ETH Transfer per Date chart shows that before October 9, most of the transfers were less than $10, but after that, higher amounts were transferred.

On average, the most transfers are between $10 and $100, and only 2.1% were more than $10k.

From Oct. 20th, the transition to layer 2 can be seen.

In the last 60 days, the most transfers were to Dex and Cex.

Transfers between Cex and Non-Miner have been much less than Miner and Cex.

In the time frame of the collapse of FTX, transfers to/from Cex have increased a lot, especially transfers to Cex.

According to the ETH Senders To/From CEXs chart, it has been much higher but has dropped sharply after October 9th in particular.

ETH Senders Cex to Non-Miner increased after November 11th.

Chart insights

Transfers between Cex and Non-Miner have been much less than Miner and Cex.

In the time frame of the collapse of FTX, transfers to/from Cex have increased a lot, especially transfers to Cex.

According to the ETH Senders To/From CEXs chart, it has been much higher but has dropped sharply after October 9th in particular.

ETH Senders Cex to Non-Miner increased after November 11th.

2- ETH Swapping