The Daily Gwei Data Pump #1 - Ethereum and DeFi On-chain Analysis

Transcript

hello everyone and welcome to the first episode of the daily grade data pump these episodes will be coming out once a month and they'll be focused on the on-chain data of ethereum for the previous month as this is the first episode however i'm going to be covering the last few months worth of growth to give you some context around what i'll be covering in future episodes as well so let's get right into it okay the first site that i'm going to be using to show a bunch of different metrics is called glass node they have a really nice little studio here where they have a bunch of different metrics some are paid some are free um obviously the best metrics are are paid but uh we can still have a look at some of the the great metrics here and make sure that we cover them

you know in depth so one of the the metrics that i look at the most is the number of active addresses on ethereum now this chart here goes all the way back to 2015. so glass note actually has like a a bunch of rich data here going back you know as far as as basically the main net of ethereum being launched in mid-2015 uh which really gives some really nice context here so you can see you know obviously during 2017 we had this massive spike of active ethereum addresses so you know these are addresses every day that are active on the ethereum network whether that's sending eth interacting with a smart contract interacting with a d5 protocol sending tokens you know anything like that that's what counts as an active address right and it tends to follow price you can see

the price here in black and then the active addresses in blue uh you can see you know how it pretty much tracks track's price um but sometimes sometimes it doesn't sometimes it'll it'll go off base there but generally it tracks the price and what's been really cool to see over the last few months is that you know the active addresses on ethereum have started to go up again right you can see i guess during 2018 and 2019 they kind of remained in this this pattern of like a sideways movement with a bit of spikes here and there along with price but now because of all the activity that we're seeing on chain on ethereum especially within the deep fire sector we're seeing like more sustained growth here uh you can see in 2017 it was like a a shot it shot up really really fast and then

came back down you know just as fast and that's simply because of the price action of course now because the eighth price has actually been trending up a lot slower over the last few months especially during 2017 uh sorry during 2020 uh the the active addresses have actually been going up in a much healthier way which is really really awesome to see uh you know you can see here though that you know we had uh d5 summer during june july august uh and then coming off of august and september was like the kind of d5 bear market and then october was a bit was a bit of a better month right we started recovering and then on to november as well so yeah i i expect this to keep going up as you know the market heats up of course as i said this tends to track price

but also as we get more and more users kind of using all these different protocols on ethereum right you know we didn't have a lot of this in 2017 i'd wager that a lot of this activity here was can actually be attributed to both just the price going up of course and also something like cryptokitties right uh cryptokitties had a ton of unique users coming in especially from outside of crypto and trying this new thing out so yeah really interesting to see that there but this is one metric that i do keep a very close eye on because i think it's pretty interesting another one that i like to keep an eye on is the ethereum number of addresses with a balance of more than 0.18 so this is the seven day moving average here this is very interesting because

0.1 eth is uh is worth different you know amounts at different times right you know today when eat is 600 0.18 is worth 60 dollars whereas when it is 100 0.18 is worth 10 for example so i think tracking it at today's price is is quite accurate it kind of shows the distribution of holders increasing or decreasing so you can actually see through basically the entire bear market of 2018 and 2019 this barely moved right even though the price did a bunch of different things here the amount of people holding 0.1 uh ether more stayed relatively flat right whereas 2017 we obviously saw an explosion

because that was kind of ethereum's year but we're seeing the same thing play out in 2020. now it's interesting because more more analysis is needed here more deeper analysis with a lot more rich richer data but you know this 0.1 eth being 60 you know a few months ago it was like 30 40 this could be people were just using ether's gas as well right it doesn't necessarily mean people are holding eth uh you know 60 dollars worth of for example as as an investment or whatever uh they're definitely using it for gas within different addresses that they're using and obviously this is because of defy right but in saying that the the holders of 0.1 ethomore went up before the d5 craze so it actually just started

trending up in 2020 and that's i think because you know the east price actually started recovering quite well and we we broke out of this kind of you know sideways market um and it's been going up since then but i'd be very curious to see how many people are simply just buying eth transferring it to their address and doing a bunch of d5 things because obviously you need ease to pay for gas right but still very interesting metric i think we're going to see a healthier growth here um you know you can see here i guess towards the end uh it's it's come down a little bit here not sure why that is but it's not you know unheard of there was a little bit of a a kind of downtrend here and then we started going back up again

um you know i expect to see this continue to go up to be honest um you know as we keep going you know there's other metrics as well for this like you can do you know addresses with a balance of more than one eighth for example uh and this has continued up as well but this is obviously a lot more right this is over six hundred dollars at time of recording of of of eth um but that's still trended up which is really cool and then you know there's there's uh there's metrics for every kind of denomination here or most of them anyway so addresses with more than 10 000 eth which is basically going to be whale addresses right that started trending up recently a lot so there's some some whales definitely accumulating eth since since november which i think we can see reflected in the price right uh there's

a lot of uh price movement with with eth you know in let's see when it bottomed here eighth price was 450 and then up here it's now 600 right um and then we can see similar things when there's when there's been other price movements here so yeah that basically tracks whale addresses and then down here unfortunately i can't view here these which i think are actually more accurate metrics but they're on the t3 plan which is which is more expensive from from glass node i don't have that plan unfortunately but basically you'd be able to see you know addresses with a balance of more than you know one million dollars right regardless of the amount of ether it is it is what it is worth and actually i think if i click in here i can actually see the data it's just stops yeah so i can only see the data up

to a year ago basically so i can't see anything after that which is kind of useless when we're trying to do kind of on-chain analysis here for recent recent events um but still i mean it gives you some kind of context i guess that but obviously this is going to follow the the price a lot more than than you know the metrics of just the the single eighth um being in someone's account or 1080 or 10 000 ethor or what have you uh so both relevant metrics but unfortunately i can't show you the up to date with these today maybe in the next episode i'll have access to those metrics and i'll be able to show you uh yeah as i said you know i just showed you the 10 000 e uh balance uh for for for wales and i explained kind of the implications there um this

one so so this is funny i put a tweet out about this um sorry this metric here uh with the percent of supply in smart contracts a little bit ago and i actually had a comparison chart where i showed the percent of the supply and smart contracts versus the percent of the supply of in centralized exchanges and they were basically kind of like opposite of each other right smart contracts go up exchanges go down um and obviously i mean this is very obvious it's because of what happened with d5 summer you can see right here you know i i'm pretty sure compounds liquidity mining launched like june 15th or something like that which was what kicked off the d5 bull market and then you can see the explosion here right and and it's followed down as well

um with with the kind of like i guess petering off of the d5 market too so uh but that's still like a trend that's much better than kind of what we've seen in the past you can see here it was like flat for like the entire time here right flat or down there was no real movements that were worth mentioning or anything like that you know it's funny because uh you know in smart contracts which i'm sure if i contrast this with the one of uh of of supply in exchanges centralized exchanges we would see it go up uh and that kind of tracks price as well right but then on top of that you know you can see here back in 2016 that of this massive spike here and i'm sure you you know the the people that have been around long enough can guess

exactly what this is right but for those who don't know this is the dao smart contract so the dow was a an ico essentially in 2016 that kind of blew up spectacularly and resulted in the uh hard fork that spawned ethereum classic for ethereum on ethereum um but this is really funny whenever i look at this right look look how quickly this contract managed to get you know 20 almost 25 percent of all eighth uh you know obviously there are other smart contracts at the time but there was no d fire or anything it was predominantly the dow so if we look here we can see maybe we can see here from what it was at the start of 2016 feb 2016 it was four point

four percent four point three nine percent and then it and then here it was 23 percent ish in in june so so i guess like six months five months and then as soon as the the kind of like uh the exploit or hack happened you know you dumped all the way back down but didn't go back to where it was it went to like 10 percent and then we see a kind of rise here and we see like a steady kind of rise here and then just like sideways which is surprising because uh you know there was eighth being sent to icos but since this only tracked smart contracts i i think a lot of ico operators didn't use smart contracts to um handle their eth it was just done to a normal ethereum address so that explains that and then the

brutal bear market that eth experienced during 2019 explains this because i'm pretty sure a lot of this will eat would have gone to exchanges but now with d5 there's no reason to keep your eat on a centralized exchange you know doing nothing you can just put it in d5 and earn a much better yield on it right um and and also in eth2 i don't think this tracks uh the supply in eth2 um so that could explain this drop as well right a lot of people exiting um d5 going to e2 and then uni swap liquidity mining ending as well would explain this drop of eth um which i'll show a bit more about later another one of my favorite charts here on glass nodes is the ethereum hoddle waves chart

now what this shows it basically shows um the the holding periods of of eth over you know i guess like 10 years it's been around for like six years so if i go here i can break it down for you so obviously eighth is not you know over seven years old so you know anything over seven years is zero percent of the eat supply um there but when we go to five to seven years this shows that four point one four percent of the eave supply hasn't moved in over five years right between five and seven years but basically over five years um so that's you know that could be eth that's being held by a bunch of long-term holders that literally don't ever want to sell their eighth for example or maybe they sold some of it

and kept more of it in their genesis address could be eat that's lost for example could be eat that was that stuck for for for whatever other reason so that's a that's a pretty sizable chunk of the supply right four percent of the total each supply and then you know you can make your way down the list you have uh over three years so between three and five years eighteen percent of the supply hasn't been moved so three years ago was like what is it 2017 uh yeah 27 late 2017 right and then even further than that like these people they must have seen the 2017 bull market and not have sold a lot of this eighth which is which is amazing to me to be honest like you know they would have bought this eighth back when it was much cheaper maybe at like ten dollars or something

like that or this could just be a lot of people who bought ethe at you know during the mania uh and then have forgotten about it because they're like like crashed you know ethereum's dead whatever but it's interesting to see that such a high percentage still and then we move on to two to three years 16 another high percentage you know one to two years is almost 20 and then we can keep moving down the list uh but if we want to talk about like the active supply of eth i think you know i guess maybe six months or less i would consider active supply anything longer than that you know i mean it's either exchanges having user balances on on on there on the exchange of course which kind of muddies the water here but in terms of like moving it around on chain and doing things with

it i guess the active supply of eight is less than you know that six months worth yeah so that's about quick math here 25 percent or the total eat supply is actually active moving around doing things but that doesn't mean it's on like you know it's being sold or anything like that it could be being used in dfi's collateral all that sorts of stuff you know because uh of the fact that this chart just shows you like raw numbers it doesn't actually give you any you know nuance or context around what the it's actually doing it's kind of hard to draw too many conclusions from this but i do like to look at the number you know over five years increasing um because that means it's kind of pretty much definitely either lost long-term holder or locked exchanges usually re-fresh frustrated

dresses a lot more frequently than this like centralized exchanges so they will have moved their eth like you know there was a lot of noise about coinbase doing this a few years ago or a couple years ago now where they moved their cold storage so that wouldn't reflect in in more than five years and you can actually see on the chart that you know obviously this didn't kick in until recently it was basically kicked in this year right july 2020 uh it kicked in and then immediately there was like point three percent that hadn't been moved and since then uh it would've gone up to four point one five percent so almost an extra percentage it hasn't been moved and obviously that'll keep increasing over time i i suspect unless you know some some people decide to move it and then it

just goes into it just kind of like cancels it out there this is a very interesting chart one that i pay attention to a lot uh especially the the you know the active supply going down you know eventually i expect 25 percent of the 8th supply being moved in the last 6 months to actually become less and less especially as the 8th price goes up and as people you know need less and less money to do certain things like i guess paying paying fees and doing things in defi and stuff like that so interesting to see again this probably doesn't take into account e2 definitely doesn't take into account e2 but that's kind of irrelevant i think here but yeah another interesting chart for sure this is really really interesting as well so this is

uh basically a i guess like a a chart that shows what stage of the market ethic is in now this was originally done for bitcoin but it's obviously applied to ether as well it's called the net unrealized profit loss indicator or the knuckle indicator right uh so what this does is i'll just read the description down here because it's it's it's a little bit complex this one but basically knuckle is the difference between the relative unrealized profit and relative unrealized lost so this metric is basically used to calculate um you know i guess like people in profit versus people in loss and then from there they kind of measure uh what the sentiment of the market is right so you can measure from

capitulation to that's basically when like all people have lost hope right you know when it went to 80 everyone was like wow okay is this ever going to stop bleeding and then you get like that sinking feeling when you see that that is capitulation hope or fear is basically what happens when there's been a recovery from the bottom right um and then you you kind of like have hope that it's going to keep recovering but you're also scared that it's not so it's not you know you're not out of the woods yet so to speak uh optimism and anxiety is similar where you know you've seen the price and it keeps going up and there hasn't been any major dumps and you're optimistic right but you're also anxious because you're like oh no you know maybe it's gonna go back down again it's done at every other

every other point in time and then you move on to the belief and denial stage which is in green here which is actually what we're in right now and i actually feel this because i believe that we're in another bull market and so do a lot of the people that i talk to and know but at the same time we're kind of in denial about it right we've we've experienced the whole bear market and we're still in denial we're like you know we can't believe it's at 600 again after so long um you know and that's kind of like what we're what we are there and then of course the end state is euphoria and greed now definitely felt this at the end of 2017 right where everyone was euphoric and super greedy everyone was making you know amazing profits just throwing you know money or whatever it was

and that wasn't you know gonna last right and what this metric tends to do is to show you that when we reach these levels it's probably time to take profit right you can actually see how it follows the price pretty pretty accurately um you know it's hard to know if this is a leading or lagging indicator right if you wait for this indicator you know say this indicator turns like here euphoria and greed right back in 2017. they turned that when eth went to like 700 so if you had sold there you would have obviously sold too early and missed another two times but at the same time this didn't last very long it went from 700 on december 16th to 1400

on january like 14th so let's a little bit less than a month right and then from there it just like went down very hard right uh so this can be used to top bot to spot tops and bottoms i actually think it's a better indicator to to spot the top because if you look here and try to spot a bottom right you down here right i guess like this indicator started turning to capitulation when it was like 300 and it kept going back down to like almost 80 dollars here so if you were just looking at this and said okay i'm going to buy it 300 then you would have bought you know you wouldn't have bought the bottom or anywhere near the bottom you would have bought there and you would have had to wait right after this dump you would have had to wait until so

you would have bought at 300 which was september 2018 you would have had to wait almost a year i think 300 was up yeah yeah june 2019 to you know break even on your on your investment 300 but then if you kept holding you would have seen another drawdown and then you would have had to wait until uh until february 2020 again then you would have seen another drawdown due to the the coronavirus dump as it's come to be known and then you would have been in profit a total profit where you are now and still in profit in july 2020.

so we have september 2018 to july 2020 almost two years of holding through this brutal you know bear market being in profit bear market being in profit bear market i mean i guess you know during the bear market like dumps finally being in profit and this is why you go through the motions right this is why the emotions that come into it and this is why this indicator can actually work so well so it's one that i'm going to be keeping my eye on i don't like that we've flipped green already to be honest it's kind of scary right if you look at previous kind of greens they usually turn blue quite quickly uh and you know i guess like if we if we look at 2017 specifically we can see that that

it flipped green when 8th was like i think 15 or something and then it flipped blue with 8 at 50 which obviously you know it came back down a little bit like a tiny bit here but didn't really mean anything and then it flipped blue again when ethe went to like 70 and then it kept blue until eth was like i think 420 during that first pump into june so yeah this indicator is kind of reliable but it's probably gonna let make you sell too early if you pay too close attention to it uh so you know if you're using it just be ready for that for sure all right and next very interesting kind of uh metric here is the total transfer volume for eth

on ethereum so this doesn't include tokens it's just eth so as you can see it's kind of fun it kind of follows follows price as well obviously we had you know in 20 at the basically the end of the last bull market we had a huge amount of value being transacted on chain i think it topped it like 20 billion dollars uh in in in in january of 2018 and then we obviously had like uh and this is heavily affected by price and then we had like a kind of a dump here where it went from 20 billion dollars and bottomed out at like 146 million here and then you know kind of bottomed out around here again but kind of went sideways right with the price and then up here we we've gone up to almost two billion dollars i think over here it's even higher but

the market has changed right ethereum has changed it's no longer lots of eth transfers on chain to transfer value it's also stable coins the stable coin transfer volume is is more than than this now i think more than the 20 billion uh so if you're looking at just uh the the eighth transfer on chain and kind of and kind of inferring stuff from that it's not accurate anymore you know stable coins other tokens on ethereum once that is included in the mix ethereum's actually uh losing to those in terms of transfer volume uh which is actually a good thing for eth as an asset it means ethic is being used more as like a store of value collateral asset capital kind of asset more than like you know money or something like that more than like used to transfer value

across the network increasing its velocity which potentially increases its cell pressure as well so that's a very interesting metric there and i am uh i'm pretty i mean i keep an eye on this but at the same time i like to to look at the total token transfers as well especially stable coins rather than just the ether transferred all right that's it for the glass node metrics let's move on to the into the block metrics now these are again uh paid metrics a lot of them as well unfortunately but i have an account here so i can show you them so basically this is my favorite metric for each holders by far it this what this does is it measures how many people are in or out of the

money when holding each and they have this for a bunch of other tokens as well but obviously i'll just focus on eth for today now you can see this in terms of like the addresses in profit and the volume that's in profit so let's focus on the addresses so at each price point uh you know the majority of the money the the the kind of ether be in or out of the money so you can imagine when we were back here when 8th was under 163 the majority of the people holding each were out of the money right which means they were in a loss they were they were sitting on their hands they were like wow okay once this goes up again i'm going to sell right because they're scared they want to get out of their position they don't want to sell at a loss so as soon

as it breaks even or gets close to breaking even they sell and this is exactly why bear markets are so brutal and last so long is because you need to flush out everyone or most of the people who bought at uh who are at a loss you need to flush them all out you need to make sure that you get a new set of buyers in that have a lower cost basis than the old buyers and then the price can start moving up and that's exactly what we've seen you can see right here that at six hundred dollars eighty-seven percent of all eighth holders are in profit right where's the sale pressure the the other like twelve percent whatever it is um or sorry uh there's also the at the money here as you can see uh is two percent so let's let's include that so that's people that are just like

bought at around six hundred dollars so let's say it's it's almost ninety percent that is in the money there's ten percent of tokens left that are at a loss right all the way up to uh 1400 or 1340 here are they gonna sell when we keep going higher maybe can the market absorb that yes it can because that's not much of the supply right that is definitely uh not many people that are going to be selling and we're in we're in a more of a bull market now 86 600 is incredibly bullish because we haven't seen that in such a long time so this is the perfect indicator to see how many you know for lack of a better term bag holders there are right how many how much cell pressure there is how many people are are waiting to sell so that's why i love

this love looking at this i check it regularly you know uh because it's just great and obviously this will change over time as people buy and sell right the cost bases are reset you see people in and out of the money at different price points and things like that so yeah one of my favorite metrics um go check out into the block as well if you want to check out this metric i'm going to link all these stuff in the in the description of course but yeah one of my favorite metrics there then they break them down they have like in and out of the money around price uh based on based on different things like uh i guess like the recent price right so over 500 uh up to like 700 so this is more of a laser focused view um you know because this is more of a

broader view right it covers the whole spectrum from like zero dollars to the all-time high whereas this will cover just like five hundred dollars to seven hundred dollars so it gives you a better idea and it's still most of the people are in the in the money here as well and then there's the different visualization down the bottom here so you can see you know how it's turned green and because of that the price has been able to go up right when the pro when it's mostly red the price can't go up as i explained right so very interesting metric i love looking at this definitely go check it out and into the block also has a really cool defy insight section these d5 metrics are different to a lot of the ones that i've seen out there so you know you can see an aggregated d5

tokens market cap here of the top d5 tokens including wrapped bitcoin uh so they have rap bitcoin die avail uni swap wyone uh and like a bunch of others so it's funny how much uh wrapped bitcoin dominates here right i don't know if i'd call that a d fight token because it's really just like an iou token for bitcoin but it kind of like dwarfs the other the other tokens because we've seen so much bitcoin come to ethereum lately but that's one metric that's that's cool to keep an eye on and see how much it's kind of increasing over time uh these metrics are very new that's why it only goes back to november they just recently released this uh but still cool to see you have defy tokens to ethereum market cap ratio so i'm sure i mean unfortunately this

data doesn't go back further enough but i'm sure if you get you go back you'll see that it's kind of like ethereum's dominance is is much higher than kind of what it is is now right because we've got a lot more d5 tokens having a larger market cap and things like that so another another really cool thing to see there a bunch of you know metrics that everyone's used to here total value locked uh the top five value locked as well uh between the top five defrag protocols so you can actually see you know if money is going out of one protocol into another things like that um i i would like to see more coverage here though the top five doesn't really tell the whole story right if you you know you can see unisop went down here a lot uh where did that liquidity go well you

put sushi swap on this chart and you see sushi swap get a lot of that liquidity right ethereum supply locked is another really cool metric here so obviously this is just eighth locked in d5 same with bitcoin locked in on in d5 they've got really cool things like a gas cost heat map so you can actually check the average gas cost and when's the best time to send a transaction based on utc you know when's the cheapest time i use this quite regularly if i want to do some transactions that aren't urgent you can switch to the 28 day view here and and look at that as well uh obviously like you know maybe this is a time when you're sleeping or something unfortunately it actually is for a lot of

the americans because i i noticed that during the us working hours it's definitely more expensive to do transactions but typically weekends are the best times to do it um and you know you can see here uh or or late at night right um as well so weekends and late at night it's like the perfect combo and by late at night i mean like us-based and things like that i'm lucky because i'm in australia i'm basically on the up the opposite side of the world so my transactions are usually pretty cheap at certain times which which is really cool and then yeah a bunch of different metrics here as well i won't go through all of them today but yeah there's there's a lot here to unpack uh basically so if you want to go check this out definitely go

and check this out it's it's free right i'm pretty sure it's free you can go to the into the block website and check this out i'll link it in the description as well all right another really uh interesting chart i like to keep an eye on is the coin metrics correlation chart between bitcoin and ether so things usually tend to correlate during a bear market or during like a dump right so we saw that play out at the beginning of 2020 with uh i mean like with the crypto asset class uh correlating with the traditional asset class now this is because uh you know when everything's risk off people go to cash right they don't go to other risk on assets no one goes from like bitcoin to ethereum or ethereum to bitcoin when they want to be risked off

uh in like a in like an event that we saw in march of 2020 during the coronavirus uncertainty they want to go to cash and that's why things correlate but then during a bull market things tend to lose their correlation because people are risk on they're going into different assets they're happy doing that they feel better about it and we can see this reflected in the chart you can see during 2017 the correlation between ethan btc was basically like very very low uh you know almost non-existent right and that played out in the price too uh eth vastly outperformed bitcoin in 2017 uh especially the first half of the year uh it almost flipped it right on on the ratio there but then as you see as kind of eighth kept going up and

up and getting a bigger market cap right and then we we have the 2018 bear market the correlation shot all the way up right the correlation was almost 0.9 so that basically means that they're almost 100 correlated bitcoin and ethereum and this and this remained very high during the bear market during the entire bear market basically and just until recently did it start going below this so it actually lasted from july 2018 to september 2020 basically and what this signifies is basically once it starts going down like this i think it starts to signify that we're in a bull market and the market's feeling more bullish

i expect this correlation to go down even more as we keep going especially because i expect eth to outperform bitcoin during a bull market we're gonna see this happen and you can map these correlations across any coin against bitcoin since bitcoin tends to lead the crypto market and you'll see similar patterns play out so the very interesting chart from queen matrix here uh one of my favorites on on this site uh and i use it quite regularly as well and this is based on 180 day moving average too so if i actually shorten this to like 30 days the chart gets it gets very messy right so that's why i don't like like to kind of do that uh so if you like take a longer time frame look it's it's much better like 180 days is six months

so you can see the six month kind of like correlations here which in my view is is a better way to measure these things all right another one here is really interesting uh from uh i guess the block here they have a really cool on-chain data section you can see here if i go out to all what this basically shows is that the ethereum miner revenue uh daily miner revenue over time so obviously this is going to follow the price right but i don't want to focus on the actual miner revenue from the block subsidy that is the e the new new ether generated from mining blocks i want to focus on the transaction fee revenue so the transaction fee revenue on this chart is in red here that is the highest it's ever been and

continues to be high because we saw the transaction fees on ethereum spike so high right in some days during the i guess the d5 summer the transaction fees on the network were actually higher than the block subsidy to miners so they were making more from fees than they were from from the newly generated eath coming out which was quite insane you know even in 2017 this wasn't anywhere near the case right uh you know transaction fees we're paying for for some of it but but nowhere near what it is today and it's actually sustained here uh so and we've seen it just go up with the price of course but uh yeah miners are making a killing that's for sure and because of this uh the uh the you know as i said the ethereum transaction

fee percent of total my minor revenue is at uh this kind of um uh these all-time highs here especially during september which was peak d5 summer and d5 bull market mania and then this all culminates in ethereum's hash rate so it's mining hash rate being at an all-time high because of the fact that it's so lucrative to be an ethereum miner now even without the higher price right ethereum was more than double this price uh during uh 2017 here or 2018 basically uh and its hash rate is much higher now because there's more revenue being kind of paid out uh and also because miners have gotten better as well i think the rise of asic miners on the network attributes to this a lot too so that can't be discounted but it's

funny that ethereum's hash rate is at an all-time high at the same time that we just turned on proof of stake with eth2 right so very very interesting thing to watch there all right this video would be remiss with uh without me kind of mentioning uh some some d5 metrics from default pulse so you can see here obviously the tvl usd locked in d5 this hasn't really been affected by the quote-unquote d5 bear market really you can see on the one-year chart here right september uh sorry it's not september june when the compounds kicked off the bull market it's kind of just been up since then there's been i mean during the d5 bear market there's not really been any kind of like

less uh kind of like uh dumps here in the chart i guess you could say so it's been very steady you know if we look at eighth locked in d5 uh it's kind of same pattern here it's kind of it's been steady but then it kind of you know dumped tr that's definitely because of uh eth2 uh and also because of uni swap mining ending so if i actually look up uni swap here you can actually see how much each has fallen out of uni swap uh it peaked at i think during liquidity mining 3.6 million eighth now it's down to 1.1 million eighth it's 2.5 million eight that's been taken out of uni swap alone some of this went to sushi swap of course if i go to sushi swap pr and go to eef you know you can see the uptick here right and then you can see another

uptick but nowhere near 2.5 million so my theory is that some of that went to sushi swap obviously some of it went to e2 staking uh some of it went to other parts of d5 but we did see you know what is this like a nine eight point nine million dollars down to six point sorry eighth depth of 6.6 million uh that's a pretty pretty uh big drop there so you know uh i wonder where that eats gone uh it doesn't seem to be gone into many of the other d5 protocols you know probably a lot of it went into eth2 makes sense i have a few friends that did that right uh they would farm you know uh until the last minute and then deposit it into eth2 so that makes a lot of sense there for sure uh but yeah good to see d5

kind of chugging along here yeah this unfortunately isn't too accurate because it basically counts wbtc locked in d5 um and not all of this wbtc is in d5 right it's you know in people's wallets and things like that so a bit inaccurate there but i i i do think that's going to be rectified soon i i i think the d5 pulse team is on top of that okay last couple of metrics this has probably been a long video at this point so i just want to wrap up with these really cool metrics so what this chart shows is the daily gas used on ethereum so this is actually capped so you can't really go above kind of a certain amount because each ethereum block has a gas limit on it right

and that will obviously um you know limit how much how much gas can be used per day and we're pretty much at the limit here you can see when the limits get increased so the limit actually got increased up up here and then up here again i think the limit is like 12.5 million per block or something like that and you can see here as like a lot of gas is being used each day like every 15 seconds 12.5 million you know i've got if blocks are full then all the gas is being used and that's just ethereum's economic bandwidth being being used right that's why you see phaser are still like not anywhere near what they used to be you know right now they're 20 grey which is actually very cheap mind you it's it's a sunday for me so that's why right i'm recording this

when i think you know the u.s is asleep i just looked the time there uh but you know usually it stopped but like 50 gray during the more active hours which is you know that used to be less than five grey during the active hours uh and you can see that right even up until even even down here when the gas limit was lower because we didn't have as much demand but now it's it's way up here and you know you might look at 2017 and be like okay well 2017 is you know a lot a lot lower than what it is now and that's because one uh the the gas limit was lower but also because there was less complex transactions happening on the network now what do i mean by that complex transactions uh like d5 transactions for example didn't really exist in 2017

and these transactions actually cost more gas so when you pay a transaction fee it will cost you more to interact with the defi app than sending eighth and this is because each uh kind of um interaction you have with the ethereum network has a gas cost associated with it now uh the the gas cost for sending eight is 21 000 for example the gas cost for interacting with a d5 app is usually in the hundreds of thousands so you can see why it's a lot more expensive and that's exactly why we're seeing such high usage years because people are paying these these this gas these gas fees because they're getting more value out of it as well uh so that that's another interesting chart i'd love to keep an eye on but as i said it's kind of capped out for now so we're not going to get much kind of

like insights from here um you know unless the unless the miners vote to increase the block limit again uh the block gas limit again which they have the ability to do i wrote a piece about this in the daily grain newsletter actually i'm going to link it in the description um because i think it's very important to understand this and i i think i did a good job of explaining it in that piece so i'll definitely link it for for you guys last chart so i've showed this on one of the daily wave refuels recently but i thought it was worth revisiting so as you can see here the total ethereum nodes on the network is basically you know shot up over the last few weeks now this is because in order to run eth2 validator is strongly encouraged that you run eth1 node as well

rather than using a third party provider and that's exactly what people have done you can see that it went from about 9000 nodes to 11 200. so let's say it's another 2000 nodes came online and it's funny because the unique deposit is into eth2 from what i saw last time i checked was almost 3000 or something so the majority of people are running their own node uh when they're running their e2 validators which is really cool to see unfortunately this chart doesn't go back much further than october but i'm pretty sure this is an all-time high for ethereum nodes on the network which is really encouraging to see so i'm really really happy about that but yeah i'm going to keep an eye on this one definitely i expect it to come down over time because you know people are just gonna

be like oh well i'm not gonna run this ethereum onenote anymore i'm just gonna use a third-party provider it's fine whatever uh but you know i encourage people to keep running their eth1 node for as long as you can it's it's not too resource intensive it keeps the network more decentralized and it keeps you safer than relying on a third party as well and you know if you're running an eth1 node you can connect your meta mask to it as well so you don't have to rely on a third party like infurer which is always good to to to do as well all right so that's it everyone thank you for joining me on this first episode uh i think that i'll be doing these once a month uh going forward they're not going to be as long as this episode i think i'm just

going to be covering the previous month's worth of on-chain data picking out some really interesting nuggets for everyone to to kind of like have a look at and pay attention to and i do think it's going to be very interesting going forward next month i'm going to do an e2 recap because i wanted a whole month of eth2 the e3 network being live before i did a deep dive on the data there i think there's going to be a lot of interesting insights there uh and i will aim to do different metrics on on on a few different metrics on on each episode but also stick to like the the same metrics so that we can see the growth right over time or maybe the decline over time uh but yeah so i'm really excited for this series i hope you are too uh definitely subscribe to the

youtube channel if you want to keep up to date with this subscribe to the daily grade newsletter as well if you want to keep up to date with other ethereum things and join the discord channel if you haven't yet but yeah thank you everyone for watching i hope you enjoyed it