The Daily Gwei Data Pump #5 - Ethereum and DeFi On-chain Analysis

Transcript

hello everyone and welcome to the fifth episode of the daily grade data pump where i go through the various on-chain ethereum and d5 metrics and do a detailed analysis on them today's episode will be covering the month of may so let's get right into it so the first thing i wanted to kind of look at today was east price for the month of may and well did it have a journey during may that is for sure so you can see here on the left side uh we started may at about uh what price was it here about 2757 we went up to its new all-time high of 4 400 around about that at uh about 12th of may so you know not too long after we had a pretty incredible run here and then obviously we had the great crypto crash where we went from

essentially 4 400 down to about what was it 17 30 here so this is quite the drop you can see here if i measure the drop from from top to bottom that was a 60 percent drop for for eighth from uh i guess this is 12th of may until the 24th of may so over 12 days we had a 60 drop which was pretty brutal and brought us back to prices that we hadn't seen since uh the end of march yeah basically in the march beginning of april now of course we've come back up a little bit but we're kind of like stuck in a bit of a range here so you can see that we're back up at 23.70 at time of recording but you know it's been ranging a little bit and actually been trending down uh so you can see here over the this is the

four-hour chart by the way but you can see here that over the past few days we've been trending down but this goes into june of course and this episode's covering may so i do just want to kind of like quickly uh give some thoughts about what happened here now obviously you know if i go to the daily chart oops that's the three days uh well if i go to the daily chart here and you can kind of see like the incredible run that eth had you know i guess like over the last year or so since like march i mean if we just take it from may if we if we take like from the first of may till the uh the first of may here in 2020 to i guess like what was it the the first of may 2021 we were up 1100

and then at the top we were up uh what was it two two thousand percent so we're up about 20 x from there now if we take it from the bottom now if you managed to catch the bottom uh during the the covert dump in march you are up 47 x in in about 425 days which is a pretty incredible return but as you can see here you know it went up so much and then it and then it went up like a fair bit here it accelerated uh in this range here similar to to what happened here but i think it was it was a different time where you know end of december early january this was kind of just eight getting back to its all-time high and the market was was very very bullish we still had some pretty brutal drops during it but we

continued up and this was kind of like you know in my mind eighth didn't go up that fast like you would expect to see i mean this is the log chart but you would expect to see maybe you know a bit higher than this or something like that i i was thinking maybe we'd see 6k before we came down but i think uh you know bitcoin had looked weak for a while uh ethereum obviously had already had an incredible run and there are a bunch of other tokens out there like the dog tokens you know a lot of you will be familiar with and a lot of things like that that um you know got a had a lot of money come into it and then uh a lot of people came in a lot of retail investors a lot of new investors and they basically kind of you

know lost a lot of money made a lot of money some of them and then all the money kind of i guess ran out and we came down after that so yeah it was a pretty brutal drop here and you you know you won't see it in necessarily in most of may's metrics the metrics for maya are quite insane uh the entre metrics which i'll go through in a sec but you'll see it when i do the next month's data uh data pump and see like how quiet june is going to be comparatively because at the end of the day the price and the market kind of like activity drives the uh on chain activity uh at this point in time because pretty much like most of the stuff that's happening is speculative you know the d5 stuff is speculative uh no one's really using defy uh at least

majority people aren't using d5 for non-speculative activities which isn't a bad thing but you know with the speculation is obviously uh higher during times of of high kind of volatility and high market activity there so without further ado let's get into the data metrics for uh the the month of may so you can see here this is the number of active addresses so if i just kind of get like uh i guess like if i just take from january and zoom in here and you can kind of see january to to may uh basically and well until today june 12th here you can see that the massive drop off here so we peaked at about may 11th which was just before the the crash happened and then uh at 734 000 active addresses on ethereum and

then we came down obviously over the next few days when as the price crashed we came down to 544 000. so we lost about you know just almost 200 000 active addresses and that's been trending down since currently at about 500 000 which is levels not seen by march now if we kind of plot this against the price here it's not like a one-to-one kind of thing but you can see how like you know as the price is going up obviously the active addresses are kind of like following it there but it seems that the active addresses are actually a leading indicator where they start trending up before the price does so i'm not saying that you could use this indicator as like something to i guess uh playing the markets with or anything like that it'll kind of trade against but you know even

if we kind of like zoom out maybe a year or something like that uh it's it's kind of hard to say right because here is like you have like a bunch of ups and downs a bunch of ups and downs while the price was just kind of trending up steadily but then you know and it depends what moving average use as well if you use like a zero day it becomes even i guess like even more noisy so i don't think this is an indicator that you can use but it is one you can use for like a macro pick just because if we scroll out to five years and just look at the last kind of cycle here let me do a seven day moving average on this you can see the same thing happened at the end of the last cycle and i'm not saying that the

cycle's over this time or anything like that but generally this is what you'll see you'll see like a spike in active addresses uh and then you'll see kind of a come down here now i don't necessarily think you can compare what happened here to to last time here because these days there are a lot of um different things you can do on chain right back here it was basically icos and and kind of um you know sending i guess ethan tokens to and from centralized exchanges there wasn't any sort of defy back in the 2017 run whereas kind of here you still have people being active on the network whether that's through yield farming yeah i know the yields have dropped a fair bit lately but still that's through kind of like yield farming doing different defer actions stuff like that but also generally we this is layer one

and we've seen a few layer two solutions go online uh there's polygon that's that that's taken um a lot of our kind of activity are kind of offloaded from the ethereum network which is positive to see and i'll go through some of the polygon stats later on i've got them rpr but i think generally there's going to be like a cap on the number of active addresses uh and and it might kind of like trend down over time naturally because most users will be at layer two instead of layer one whereas layer one will just be a kind of settlement layer where instead of looking at active addresses on the network you look at the values settled on the network which i'm going to go over in a little bit here so still good to see this i think we're not at that point yet where most users are

on layer 2 so this still has some signal in it but i think as time goes on it's definitely going to become more more of a a noisy chart rather than signal here so the next one i wanted to look at was the net unri realized profit loss uh chart from glass node here or the knuckle so i've gone over this on every data pump since the series began and i've been watching this for quite a while and i i i have been saying to you guys that if we trickled into the blue here so you can see it trickled into the blue on the right hand side here that means uh the market is getting you know very overheated and essentially what this measures is it basically takes all of the addresses on chain measures what kind of profit they're in on on eath and

how by how much so if this is in the blue it means like a lot of people are in profit by a lot of um a lot of percentage and you might expect like a downturn soon now comparing it to like a 2017 i compared it in previous data pumps where i said that even if we kind of go up to i i guess um go up to the blue we can remain in there for quite a while this time we briefly touched the blue and then kind of like went back into the green pretty pretty quickly and i think that's because of bitcoin honestly uh bitcoin definitely led the the way down because it was looking very weak for a little while there um and then a the last time i checked was actually down less than bitcoin from its peak and the ratio did

go down a bit due to the el salvador news but generally has held up quite well so if i look at the bitcoin knuckle here i know this is ethereum uh stuff that i'm supposed to be covering but the bitcoin one's pretty interesting you can see it never actually went into the blue it's and and it stayed in the grid and it's actually come out of the green and into the yellow here this time so a lot of uh i guess like bitcoin has has cooled down a lot like considerably here and this kind of like uh never uh just eyeing it here this this has kind of like never happened before it had always gone into the blue area first before coming down kind of into into the green and then into the yellow again whereas this time we didn't touch the blue area and this

is the seven day moving average but even on the uh i guess like zero day moving average we didn't touch it either here so i think when you look at this and i guess there was some fundamental reasons why btc's price came down as well there was the china mining kind of ban fud thing there was the the elon musk esg stuff you know there was a lot of kind of things going on around there that's i think why bitcoin came down um or at least in part a big reason why and maybecom was already looking weak mind you the institutional inflows had kind of stopped there but this is actually quite healthy that it's in the yellow now now you know people were saying well we're going some people are saying oh well we're going into a long-term bear market and if that's the case then btc's

price will keep falling which means that this yellow will keep falling because people will be less in profit there'll be less kind of holders in profit and you'll eventually get to the orange zone in the red zone now traditionally in the red zone um has been a pretty good bottom indicator for both btc and eth on on ether it's been absolutely kind of like amazing in terms of like just the price ranging so you can see the price is the is the kind of gray line here and you can see that basically during uh 2018 2019 if you had bought any period during the red you were doing very well like yes you might you may have kind of like lost like if you bought up here it was 200 bucks and and you know went down to like 80 yes you would have been down

but you know over the longer period of time you would have been fine so this kind of like also shows you how risky it is to buy at what price points because it gets to a point where there's just no no sellers kind of left their sellers are completely exhausted because people are just like completely out of the money they don't want to sell at a loss um and you know the knuckle goes negative here so that's what we've seen play out and i think each knuckle actually looks pretty healthy i'm kind of glad to see that it's just in the green still and then there's still a lot of eighth holders that are in massive profits and i don't know if these holders are actually going to to sell at this stage maybe they will maybe we all go down further but when it comes to eth you actually can't

just look at things in a vacuum and can't compare it to bitcoin because think about how many eath holders are staking like how many of those long-term eat holders put their eat into staking and if you think about it we had millions going to staking when ethan was below a thousand dollars i i believe um so if you kind of look at it from that point of view that all those addresses are counting towards this this kind of knuckle and all that is counting towards this and there's plenty of um you know longer term investors out there using eth indeed five to borrow against and stuff like that so i think you can't just look at um ethan bitcoin's knuckle and compare them to each other as you've seen as well bitcoins is in the yellow um and bitcoin's kind of like i guess uh had

like a more violent drop from you can see there but whereas with eth it's just it's just pretty smooth here it's been it's been quite smooth during the bull market the bear market was pretty violent don't get me wrong it was more violent in the lows but but over time ethan has been pretty healthy here now you know i don't obviously know this is investment advice i don't know if it's going to go back into the yellow yeah and then the orange and the red or anything like that i don't think so personally but we'll have to see what plays out there but again it's definitely good to look at stuff like this and kind of like i guess get a feel for what's going on because essentially i guess like we went into the blue on may 6th and we stay and basically the dump was on like may 11th

so we didn't stay in the blue for very long we stayed in the blue frog for i would have to say about 10 days and then we went pretty deep into the green here because of the crash and a lot of people didn't sell and all that sort of stuff there but uh yeah so this indicator is one of my favorites to use still um i think it still paints a pretty good picture but we'll have to see how it plays out in next month's data recap so this is the number of addresses with a balance of holding over 10 000 eth so for the month of may this didn't really uh kind of change much in terms of to the downside so this is may here so you can see that uh may essentially the beginning of may there was about uh what i'd have to say 1150 uh unique ethereum

addresses holding more than ten thousand eighth that went up to about 1200 um just be i guess like you know just before the big crash sorry during the big crash like it was still kind of up here and then and then it kind of like went down a little bit not too much it went down like 10 addresses and now it's back up to essentially where it was so you know whales are serious are still in the game they're still accumulating they're not kind of like selling off like they did back i guess like during the 2017 uh uh sorry the 2018-2019 thing where you can see here where i mean it took a little bit of a time i think in march of 2018 that's when it started going down again and like you know a lot of big holders kind of like de-risked here but and then

during kind of 2019 into 2020 as well i actually went through this on the last uh dana pump when i thought this was curious because i thought during this time a lot of whales were chasing the bitcoin pump because the btc outdoors institutional inflows coming in there's a lot of hype around it and then immediately uh basically in november and december he started recovering a little bit like especially in december and the whales shot up here but people are still accumulating like whales have not really kind of risked here whereas you look at if you look at other addresses with like you know more than a thousand each that's been coming down for quite a while more than a hundred has been coming down as well more than ten eighth slightly less more than one eighth has actually been going up i think yeah it's been going up but

that also can be because people are using eth more and they need for gas fees of course uh so that's another thing you can't compare to bitcoin um and then 0.1 is going up as well gas phase i would say and then 0.01 has been going down a little bit here i would consider 0.01 a lot of that to be maybe dust addresses too so you have to take that into consideration as well and addresses with more than a zero balance has also kind of like just been trending up over time too and you can see during may you know it kind of like plateaued right like generally you'll you'll see that uh it just goes up like linearly like this and sometimes it'll kind of like slow down but you know it's it's kind of like plateaued here uh during the kind of like and the price is

against it so you can kind of see that there so it's still good to see that you know the whales are in the game you know all these people panic selling their ether probably styling them to whales this is the way the game works these whales have more money and they're they're they're happy to kind of like take on i guess more risk here so yeah still good to see that if i go to like the zero day moving average it's probably yeah i mean based on the zero day moving average is pretty much at an all-time high which is pretty crazy when you look at it like that but yeah that's another interesting kind of metric i like to pay attention to uh so that's the same metric there i had that doubled up whoops all right onto the blocks data metrics now so i was talking about before when i

was talking about active addresses how when you look at active addresses it's going to become less and less of a signal because of the fact that people are going to be moving to layer twos um and the the kind of like activity happening on layer one is going to be more kind of like high value activity where it's it's good to look at on chain address adjusted volume so if you actually look at its on-chain adjusted volume it's been increasing over time and this is especially because of d5 so in may alone it was 666 billion dollars that was settled on ethereum's layer one that's a huge amount of money right and then the previous month was in april 345 billion but obviously in may you know even even if the the market was volatile sorry the market was going down there was still trading happening it's

only when the market's quiet when it's ranging when it's kind of like sideways and range bound that's when you'll see kind of these volumes drop off and i'll go over june next month but you can see already when the first 12 days of june um and it's only 117 billion uh and i think you know we've got 20 uh sorry uh 18 days left here so you can say that we've we're basically going to be maybe the same as april if that we might even be less than april here so uh and then you can go back and look at like all the previous times which was very very very low i mean december 2019 was only 5.7 billion i think that was the lowest um the lowest for the last like three or four years here um but mail was obviously huge so this is what's going

to keep happening you're just going to have like these very very high value kind of transactions being settled on ethereum layer 1 well especially because more and more users are going to move to layer 2 solutions or other scalability solutions out there as well so this is another chart i like to keep to keep track of but i don't think that's like a leading indicator because you can't really know um uh because at the end of the day the price going up is just going to lead to more volatility so the price is essentially and more kind of like on chain volume so price is definitely the leading indicator rather than this this metric here so the percentage of each supply and profit so this is similar to the knuckle metric which shows i guess the number goes further than this and shows like by

how much these addresses are in profit but you can still see here like uh basically a lot of addresses as was pointed out by the number are still in massive profits you can see almost 80 percent of addresses are still in profit here and you know that didn't really change i mean this this kind of measures oh wait this goes back to 2020 actually i don't think this actually goes back to mail i i think i was reading that wrong there that's weird um why didn't this go back why doesn't this go to to may here um maybe if i refresh the page it might let's see if what happens there if i refresh because i think that'll be a really interesting start to to take a look at um and see if it's still at 80 percent we'll just let's see if this works here no

that data doesn't want to come and they're saying they're getting this data from glass node but it doesn't link to to what data they have here so yeah i guess like i'll just leave that for now unfortunately i won't be able to show you guys that but i think that the knuckle kind of like uh has it here actually if i search percentage of ethereum profit yeah okay it's a tier three metric i can't actually look at that but i can see percent of the supply in profit which i guess is the next best thing so let's just look at this from glass note if the blocks doesn't want to work here so you can see that the percentage of supply in profit is still um up massively you can see i guess like in the month of may it was at oh i mean

obviously when it's at all-time highs it's at 100 uh but still it's at about uh today it's at about 86 and then you know by the end of may it was at 86 percent as well so 86 of all uh the the current eat supply is still in profit and as you can see here you know when you're when you're in kind of like uh i guess bear markets and stuff this is obviously going to go down and this this definitely follows price obviously right you can see the price goes up percentage of supply and profit goes up so you can read this two two ways you can say well we have a long way down to go you know if you think the price is going to tank we have a long way down to the bottom but you can read it in another way where

we could probably go down a bit more but then um you know go sideways for a bit and then trend back up again so you know in the past especially here you can see a lot of people like to compare the june july crash uh to to this to this crash you can see that it went down a lot obviously eighth went down from i think 420 to 120 back then but then spiked back up in in kind of like the august september went down a little bit kind of like spike back up again so that could happen as well i mean it can go it literally can go either way and this is not going to be predictive of anything this is just going to show you that there's still a lot of people in profit you could read that as there's still a lot of people that want to sell

and can sell in profit and will take profits or you can read it that people have diamond hands and don't want to sell their ethio and don't want to kind of like get out of their positions either way this metric i think is just a cool one to kind of look at i don't think it's one that that has any predictive power but still uh it's it's something to kind of i guess keep in mind i guess like up here they kind of like have a red and green kind of zone and i guess like this pretty easily paints i guess like the tops and bottoms you can see here you know when it's like firmly in the green zone here it's pretty good buying opportunity and has been traditionally a very good buying opportunity always uh and that paints like the bottom so maybe if you think we're going to go

into a long-term bear market you wait till we get down here to buy because essentially every single time if you had bought down here you'd be fine uh you know obviously like going up here after staying down here uh during i guess like that mid 2019 pump here you would have been in profit but then you wouldn't have been as it went back down but still like generally over the long term you're fine buying in these zones so maybe that's a zone that you wait for when less than 30 of the supply is in profit you kind of get out and then up here it's like when more than a hundred percent uh no one more than i guess like 95 ish of the supplies in profit you you kind of like start taking profits up here seems to be something that you would miss out on though because if

you see here like this the percentage of the supply that went into the red zone it started going into the red zone at 733 dollars so if you had sold as soon as it went into the red zone here you would have missed its kind of run to forty four hundred dollars um so you know and if you kind of like bought when it went into the green zone here it you actually don't miss much because the first time i went to the green zone down here i think was like a hundred dollars and it went down to 80 and then came back up like i don't buying i think like during when when it's in the green zone is probably the better kind of way to go about it rather than selling up here because if you sell up here you definitely lose out on on a

massive run whereas buying in the green traditionally seems to have been um a pretty good uh uh pretty good kind of like persp not perspective pretty good kind of thing to do here so yeah that's a very interesting metric i think something to keep an eye on for sure so another thing that actually i've been watching and this isn't on chain for ethereum or anything like that but this is centralized exchange volume so eth has actually been catching up to bitcoin on kind of like centralized exchange volume um and closing the gap yeah so as you can see you know year to date i guess you could say uh btc is actually in blue here and 8 is in red i think it should be swapped but that's just the way it is you can see that and this is based on the seven-day moving

average um that uh the gap has been closing like traditionally the gap has been quite large as you can see here btc's trading volume on centralized exchanges was quite quite large there but then you know as i guess like april and may it seems to come along here the gap closed considerably and it it closed a lot uh i guess around here in during may where you know btc had 70 20 billion dollars of kind of like volume here ethan had 18 billion and it kept closing and here was like 20 and 22 billion and then it's kind of kept uh kept up there but i guess lately you know um uh it's been kind of diverging again but generally the trend has been that eighth has been catching up to it which i think is a very very good trend

because it means that eight is probably less successful less success accessible to um a btc's kind of like price movements because you'll see in the markets generally people will say oh well you know if bitcoin's going down then all everything else is going down or if bitcoin's in a downtrend then everything else is a downtrend i i hope to see as time goes on that that's not the case because there is no reason absolutely no reason outside of like pure speculative manias for btc and eth to be correlated because they are very very different things if you're buying eth as a fundamental investor i'm not talking about traders or speculators if you're buying ether as a fundamental investor you are buying it for different reasons as to buying btc same with a lot of these other assets

like d5 for example if you're buying d5 assets you're buying them for completely different reasons as to why you would buy bitcoin so why should they be correlated um is it just because the fact that i mean i asked why they should be correlated but i know because the liquidity profile um in bitcoin is much is much higher like it has much higher um liquidity um it's kind of like a flight to safety asset and same with ease i think these days um and it's like kind of like a bridge asset for a lot of these things on centralized exchanges where you trade between btc uh or eth and these other kind of assets so that's like one reason but i think generally as more fundamental investors come into this space over the longer term we should see these correlations um you know i guess like

uh uh draw a partist but but during a bear market pretty much everything will be will be quite correlated because people are just trying to get out of like everything you know btc will fall less than the eighth equal four less than uh the rest of the kind of things out there um but generally you know you'll see that everything kind of trends down together and and that is fine but i think on the way up you should see correlations kind of uh i guess like um you know uh split up there because of the fact that these things should be traded based on their own merits and or like invested in based on their own merits rather than being traded together as one big thing so i'm hoping to see more kind of like a market structure change there but not an expert on markets just thought it was something

interesting to point out here so you can see here this this is kind of like i guess falls into um what i was talking about before with the active addresses this is the tr and this is like the other kind of side of the coin the transactions on the ethereum network so you can see these peaked as well at about 1.66 million uh transactions on the ethereum network in one day so these daily transactions based on the seven-day moving average that was an all-time high and now we're back down to 1.2 million i don't think this is necessarily um any is i don't think this necessarily gives us any kind of insight um and and i think i guess enterprise movements and i also think that it's going to be effective just like active addresses are going to be affected where users are moving to

layer 2s and scalability solutions and not doing as many transactions on layer one but but the thing is the transactions that are going to be on layer one are going to be of higher value so you can think about like i guess like the whales playing on layer one and the layer twos posting their roll up security proofs to layer one and stuff like that i think we're going to see more of that play out rather than um you know this sort of stuff here but i also sorry rather than users kind of interacting with with the network um the layer one network directly but i do also want to point out is that the ethereum network is artificially uh limited by its its block size by its gas limit so you can imagine like um you know bitcoin is a one megabyte block size with segwit

it's a bit higher or um the block weight is different there within ethereum our current gas limit is 15 million so we have um 15 million gas worth of space in in each block which means that we can only fit in a certain amount of transactions per block so you know i always see people comparing if ethereum transactions you know per per day to other networks you know some people compare it to polygon and things like that i mean the reason why polygon can do more transactions per day is because it has bigger blocks at the end of the day that's as simple as that it can it has a higher gas limit it can fit more transactions into that block so i don't think comparing transactions between networks is even like something that you should do because each network has its own reason uh for for for the

amount of transactions it can do and you'll see here that i guess like you know while the gas limit was at 12.5 million it wasn't really spiking up because it couldn't it could go up slightly but it couldn't really do any massive growth because it was still being limited but as soon as we raised that gas limit you saw like a massive spike in transactions here and also i guess like the market went pretty crazy too so it's kind of hard to tell exactly how it's correlated here but i think there definitely is a correlation there and on that note as well um in terms of like the gas limit if you take the guess limit today and take the transactions per second that ethereum can do on average ethereum is doing 14 transactions per second now theoretically if all the transactions on ethereum were just 8th transfers prop 8

could do probably like 50 transactions per second this is because each transfers are the cheapest kind of transactions you can do on the network they only take up 21 000 gas per each transfer whereas complex things like smart contract interactions take up much more such as trading on a dex or whatever so whatever the transactions are on the network and and depending on how much gas they take up you'll be able to fit in less so say like each transaction on the network is taking up uh i guess like um uh sorry say say you have like uh i guess uh a a a transaction that uses up a million gas you can only fit 15 of those into into a block so if there's like 15 transactions in that block and blocks are every 14 seconds then your

transactions per second isn't going to be 14 transactions per second it's going to be much lower than that so i think that's something to keep in mind when looking at this sort of stuff is that um ethereum is has a has a hard limit on how much transactions it can do per per kind of like day here and that's based on the block gas limit as well there so let's take a look into a bit of d5 metrics now so particularly around decentralized exchanges and you guys will know that this is my favorite dashboard from dude analytics here for tracking dexers so let's take a look at what happened in may so you can see here that may br was basically the kind of highest volume on dexa's ever basically like um it was 172 billion dollars worth of volume on dex's just in the month of may

alone in april that was only 82 billion so basically more than double here and also uh if you compare it to the previous year to 2020 there was only a billion dollars done in may 2020. so that we had 172x increase there now if you look at the breakdown of which projects you can see here on the left uh unisop accounted for the vast majority of that i think for for about i don't know about 50 of the volume here 81 billion dollars worth and then you had sushi swap coming in second at 24 billion curve at 10 billion uh sorry 0x native at 10 billion and then curve at about 9.5 billion after that and then a bunch of others there um and you can see here you know how kind of like dramatic the drop-off has been too and you can see that here as well where

june has only had 27 billion dollars worth of volume so far uh and june's probably gonna be more in line with april i would suspect uh about 82 billion whereas uh may is just going to be like a massive outlier there and you can also see from this kind of weekly dex volume chart that uni swap has actually been uh kind of still increasing its dominance or at least staying as dominant as um you know it has been traditionally it accounts for 61.6 of the dex market share whereas in the past it was less i mean it i think it was 60 back in uh in april as well but you can see here it was much less and it's just become more over time and i think this this is actually a good indicator of retail interest because retail uh uh retail investors aren't

using dex aggregators you can see here that the share of kind of dex aggregators um has only kind of like uh i guess like started increasing during june but uh i wish this went back further i was looking at it in may and it was like hardly anything it was like 90 direct and that's because of uni swap and most users only knew about uni swap and things like the dog tokens and stuff like that we're on uni swap so that's why you see that that unisoft is such a dominant dexier and continues to be such a dominant deck i mean look at that market share right there absolutely insane um okay no i was looking at the wrong oh no was i looking at the right chart yeah sorry i was looking at the right chart here um so yeah i think that's actually a really

good indicator of kind of like what retail interest is in is in at any point any given point in time because uh retail is not using um most of the other dexter's out there they're not using you know bancor or balancer like as much as you want them to use those things they're not doing it they're just using unisoft because it is the most well-known decks out there it is super simple to use it is integrated with everything it has the brand awareness and everything like that has the liquidity which is also very important so i think that's something to keep an eye on as well and might be a useful indicator going forward so i'd be remiss if i didn't kind of talk about gas prices and what they were like during may and what they're like now so you can see i guess like this

this gas dashboard here um and the medium gas price over over the various weeks here and how it's come down considerably so you can see uh i guess on this chart here the medium gas price since i guess like january february march april may has you know 100 to i guess like 150 ish or something like that it's kind of like um uh kind of stayed between but now it's kind of dropped off completely and come way down to 18. and you know right now the rapid transaction gas price is 10 which is very very low um and you can also see here the medium gas price by day and you can see the spikes up and things like that you know this spike was obviously due to the crash on on the chart here and you can see the cost of an eat transfer for a day per day but

essentially you can see the trend here right where we basically had massive kind of spikes uh uh during i guess like may um and even april and we had higher gas prices but they came down because market activity came down so during actually the the the gas price for a few hours during the crash went up to like 2 000 way which is absolutely insane when you think about it right now because we're at tengwei right now so 2 000 ways a 200 times increase from where we are right now and you know no one was doing transactions on on the network at that point except people that really needed to whether that was like decentralized exchange arbitrage opportunities or liquidating or saving your position for being liquidated there's a lot of that stuff going on but there's a there's many reasons why the

gas price has gone down um mark the lower market activity is definitely one people have moved to other kind of scalability solutions like layer twos like polygon things like that the gas limit went up i mean you can see here the the as i mentioned the gas limit went up to 15 million from 12.5 million um and and i think the market activity being quite accounts for a lot of it but there's definitely a lot of that stuff going on there so yeah the gas prices are definitely something that uh i guess like has been a topic of conversation for a very long time now but now that we're in the lower gas prices it seems to be you know not many people talking about it anymore they're like oh my god gas is so cheap what transactions can i do right now which is which is kind of

funny but another thing that gas prices affect is minor revenue so you can see that during i guess the last few months especially in may there was about 50 of the minor revenue was gas fees right was transaction fees um and i should when i'm talking about miners i should actually discuss the flashbots so the mev extraction tool that basically takes uh transactions off the public ethereum mempool and kind of goes around them and and goes directly to miners and that's played a big part in the transaction fees coming down as well so um and and you know miners have been taking advantage of that and they started taking advantage of that in april and may but you can see the disparity here now in in june you know the the transaction fees are basically about i would say 20 now or even less than that

um of the total miner revenue where before it was um it was about 50 so that's come down considerably here and i think that's going to remain that way for a little while uh i i do think that gas prices aren't going to stay at this level for forever they're going to definitely go back up again but we're going to have layer twos rolling out we're gonna have more and more people using other scalability solutions we're gonna have uh flashbacks still existing we're gonna have one five five nine coming online which doesn't by itself materially lower gas fees but it does help smoothen out gas fees for users so i think we definitely are at least for the foreseeable future for for a little while here entering a period of time especially if the market remains quiet where the gas fees are going to be low

and end users will be able to do a bunch of different things so in saying that i guess like the takeaway from this is that if you have transactions that you want to do and and you want to kind of get done while gas is cheap do them now because you know at any moment the gas can start going up again especially if the network heats up again so it's good to get your transactions in now and then um you know i i guess i can just enjoy the low gas prices while they kind of last here all right time to take a look at some eth2 network stats so the validators kept increasing so you can see here we're now at 164 000 validators that's because we now have over 5.2 million eighth being staked here which is really really cool you can see that the average

validated balance has been going up over time of course as people earn more rewards the average validator uh balance is at 32.5 eth right now so people have made a 0.9 of an eighth per validator since uh december 1st which which is pretty cool to see there um and then you can kind of see like other things like the participation rate is still kind of uh trending you know pretty solid here we've got 98 over 98 participation rate which is what we'd love to see here and then i what i like paying attention to is this eth1 deposit address pie chart which shows you kind of the distribution of staking so you can see here that kraken accounts for 14 of the network right now finance is about 5.4 percent whales are about 4.1 percent i

don't know why whales are in their own category because whales are not a single kind of entity there's multiple whales and and i think they should be in the others section um but then there's a bunch of others like hobby bitcoin swiss and a bunch of other staking services you know everyone knows about lido and stuff like that and then you can see d5 here as well um and then others accounts for 62 or almost 62 which i really think is really cool but in saying that they haven't labeled coinbase here this uh this kind of like um chart doesn't have coinbase coinbase in my mind then is in the others section or in the whale section uh and i'd be curious to see kind of like what coinbase looks like because coinbase could very easily be like 10 or something which means that um you know

half of the network would be kind of like i guess uh being staked by by a bit big stakers here rather than individual stakers which i don't think is a death knell or anything like that i don't think that kind of takes away from staking i've written about this in the daily grain newsletter before why you know how i kind of like learn to love um exchange staking and staking service providers i just think it's it's not something to be too worried about um but generally it's it's good to see that it's more distributed than than uh than not essentially at the end of the day so yeah that's a bit of like eth2 data there there's not too much to go through unless i dive deeper into the technical stuff because of the fact that there's nothing really happening on the east 2 network besides uh the blocks

being produced and validated by the people of state consensus mechanism um because there's no transactions or whatever happening on there but still good to keep an eye on still good to see that the number of validators are increasing and still good to see more ethies getting sent into staking here all right so here's a new addition for uh the data pump is the i guess polygon metric so polygon scan came out the other day so it's very easy for me to see various metrics of the polygon pos chain network here and as you can see polygon has had an amazing amount of growth and i've got four key stats that i want to go through but this first stat is the polygon pos chain network utilization chart this shows how um you know i guess like uh much uh

sorry the average gas being used on the network and how kind of like full the network is in terms of like usage and you can see it it absolutely exploded in in may and in june because in may the gas fees were were very high but in saying that people were also kind of like adopting polygon because more projects went over to polygon in may you had a lot of different ones migrate there like aven sushi and things like that so there was things people to use so this is kind of like just showing the massive amount of growth there and i was mentioning before how i think that um things like the polygon pos chain other layer twos have played a a a role in getting those gas fees down on ethereum which was exactly the role they were they were supposed to play mind you so

that's really been positive to see the other kind of uh stat here is the daily transactions chart now i was explaining just before how when you look at the amount of transactions on different networks you'll see more for the networks that have larger blocks and a larger block gas limit and that's exactly what polygon has the reason polygon can do you know sometimes do over 7 million transactions per day is because of that larger block size whereas ethereum kind of can't do that and also the the the fees are much cheaper on polygon they're like sub cent fees so uh more activities become more profitable to do so if you're you're an arbitrage bot and you're doing different kind of arbitrage transactions on chain um say you want to do like an arbitrage and

make five dollars a profit you can't do that oh sorry there's a five dollar spread and you want to kind of like um kind of take advantage of that you can't do that on ethereum layer one because you'd end up spending more in gas fees than you would make from a profit whereas on the polygon pos chain you can do that so that's why those transactions kind of like spike up there because you have like these lower value transactions being profitable for these actors which i think is actually really really cool this is the same thing we're going to see play out with layer twos on ethereum like arbitrary is hopefully going to be i'm i don't think i'll have a data for arbitrary for next month's data pump for the month after i should um so that's going to be really interesting to see

what that looks like but generally that's kind of like the reason you see this but it's also because it just follows the trend of more and more users going over i mean there's plenty of kind of like users here and i've actually got a statistic here that shows the unique addresses that have gone into polygon there is a ton that you know at the beginning of may here you can see that it was uh 326 000 unique addresses on the polygon pos chain now it's at six million so obviously this that you've seen a lot of use here and it spiked up quite quite amazingly here uh and you can see the network being being used uh and on that note you can also see the active uh amount of addresses on the polygon chain so you can see that it's up to about what is it a hundred and ten thousand uh

actually you know during may it was probably less than that i think it was about during may it was much less than that actually it was about fifty 000 active active addresses here these these are native addresses i believe that were created on polygon um uh i i i i'm sorry that didn't kind of like bridge over i believe because if you go to the charts and stats here they've actually got another address that shows uh the number of active addresses uh the erc20 addresses so these are ones that i think have bridged over which you know paint a different picture here but you can see that basically uh it's a lot higher uh than than you'll see in kind of like these ones here so two different ways to kind of track this year but still i still think the best way to track it

is um the network utilization uh and the daily transactions chart here but you'll see that on a website called crypto fees that polygon fees and aggregate fees are very very low and that's simply because the fees are basically non-existent now and then you can't use that to kind of measure growth and as i as i uh pointed out they're low because of the fact that the lower value kind of like transactions um are profitable so even though you might have more activity in terms of like daily transactions you you the fees are not going to be very high because these daily transactions just lo of lower value whereas on ethereum you have higher value transactions happening and that means that the gas fees being paid are higher because people are comfortable paying that especially you know a lot of people were comfortable

paying 100 150 way because while the market was hot yields were high arbitrage opportunities were amazing you know all this stuff was going on so people were very kind of happy to do that so from that point of view that's kind of like another distinction you should make between uh different kind of chains and and different kind of like scalability solutions as well here so yeah hopefully you've enjoyed the polygon stats here i definitely will add polygon as a regular kind of occurrence i think it's really cool to just see it growing and i hope to be able to cover more of these layer twos in the near future because i think that's gonna be important to monitor going forward uh so next up we have d5 pulse here so we can see that the total value locked in usd obviously has come down uh during the uh

during the month of may because of the crash so you can see here that it peaked at 86 billion it went down to 47 billion and then you know these days it's about 57 billion now this is simply because if you're tracking tbl and usd it's obviously going to follow the price of the assets that's been tracked and the assets prices went down so that went down the better measure for me is eth and you can see that the eighth measure actually went down as well but it didn't start going down and um in may it started going down in april uh and it just continued down in may now i think there's a few reasons for this one as the price of eth goes up people pull collateral if they have collateral in because they're like okay well i need less collateral to keep the same

liquidation price right now so i'm going to pull it but also i think more people went to staking because yields on d5 um kind of went down and people were like okay well i can get seven percent of my ethan staking or i can try and borrow against my eighth and like nudge you out maybe two percent three percent on stable coins so unless people did that there's less activity generally within d5 of course because of the fact that uh the markets come down so you would expect to see this flow out but it's still not not like something that's uh that's slowed down at all this the general growth has still been up essentially and it's it's continuing back up um i guess like uh lately so i i i while i monitor that well i think that's really cool i think it makes sense like and this

doesn't track staking as well so i think it makes sense that this comes down and then you can see staking going up and i think a lot of ether that was in d5 actually went to staking like me personally i took a lot of the ether that i was using for um to yield farm with and i put that into staking i've just sent it across now and that's simply because the yields went down and i'm just getting more of my eighth in staking and because i never planned the selling in my eighth it just makes sense for me to do that now yes there's a trade-off that the eighth in staking is locked until you know the end of this year early next year but i'm fine with that as i and i you know i don't know if like i'm fine with the the kind of like

uh risk where you know maybe i risk that the yields kind of hit up again in the next few months and i miss out on on some yield farming there but i don't i'm not too fussed about that really i think at this point in time the risk um reward is kind of a bit low there so i just put my eighth into staking and a lot of other people that do the same thing now if we look at btc kind of locked as well you can see that's kind of remains steady i think with btc lock they actually track um a wbtc as well here so i'm not sure if this is the the best kind of tracking um but if we go to their btc at work uh thing here you can see actually the bitcoin at work has a bet paints a better picture here you can

see that this has just been still just like um i guess trending up but this bitcoin at work is not measuring bitcoin in d5 as i mentioned this just counts the amount of bitcoin that is on ethereum so um you know i've said this before where i think that when b once bitcoin comes to a theorem it doesn't go back to bitcoin because if you want to sell your wbtc or whatever you just sell it on ethereum on a dex you don't actually have to bridge it back and why would you pay the fees to bridge it back to vanilla bitcoin if you're planning to sell just sell it on a dex and then withdraw that money to like an exchange and then you know um sorry deposit money into a centralized exchange and cash defeat if that's what you want to do so i don't expect this

kind of like this to trend down at all but again this isn't tracking bitcoin and d5 this is tracking bitcoin in uh wbtc hbtc basically tokenized representations of of bitcoin here so the last thing i wanted to kind of go through today was this dashboard from token terminal now this is the best dashboard i have ever come across for measuring various things like protocol revenue for different default apps and blockchains you can see here um uh sorry uh for different default dapps i should say and blockchain protocol revenue if it kind of loads here i think uh oh i know this is but you can sort it out you can get rid of that and just put daps okay we get what's happening here so if we kind of see the protocol revenue over the last

90 days for a lot of these protocols they made a lot of money um the top was maker dow that made 33 million dollars metamask made 30 million dollars little known fact that metamask actually makes a ton of money uh from uh their swap fees so if you do the metamask swap and there's a fee attached to that of i think 0.8 percent um and that's like a dex aggregator so metamask makes a lot of revenue from that you can see here sushi swap keeper there perpetual protocol now the reason why you won't see something like uni swap here is because this is protocol revenue for um the actual treasury for the actual protocol not for the liquidity providers not for the people kind of like um providing capital to the system it is just for the protocols

themselves uh and you can see you know i guess like over the last year some of these have made a ton of money uh which has been which has been quite cool to see uh and then you can go down i mean you can you can actually dive deeper into different projects and markets here so if i was just to go to something like um alchemix financier and kind of like look at the project you can kind of see everything this will give you like tvl um it'll give you the price to sales ratio price to earnings ratios i'm not going to go through this i just wanted to show off this kind of like i guess um this tool on on on the data pump today because i think it's really really important and a really really cool tool to kind of like get

these kind of things and compare different kind of tokens to their to their network valuations their price to sales ratios their price to earnings you can see here the price to sales ratio of eight is about about 41x right now based on its kind of uh fee revenue and its uh market cap um and same with something like uni swap uh and and bitcoin and sushi swap and things like that so yeah and there's a lot here i mean you know you can go into like any of these projects they're covering pretty much like most projects and not just defy they're covering different blockchain projects as well and you can see here you can you can kind of plot things across the price of sales ratio against the market cap and stuff like that uh tbl kind of like unisop's tbr here which i think i wrote about this in the delegate

newsletter the other day where i think the tvl these days is actually becoming kind of a kind of meh kind of metric because of the fact that um there's a bunch of different ways to interpret tvl these days uh and then there's like different dashboards for d5 um you can kind of see like the top protocols in d5 uh what they've been doing their market caps and things like that and various metrics here like total revenue and protocol revenue and things like that so as i said i'm not going to go through all of this on the data pump but definitely go check this tool out um all the links to everything i've spoken about today will of course be in the youtube description but there's a lot of gold to be found here and there's a lot of ways to dive deeper into this data

there's actually a lot of resources out there too besides my video like um our network is a newsletter that's put together by spencer noon uh there's uh our glass node does a newsletter coinmetrics does a newsletter uh the block does um in their research pieces they do data breakdowns um doing analytics is amazing for tracking a bunch of different metrics around there so if that's something you're interested in well i think you are if you're watching the data pump then definitely go check out all of those things but i think that is it for today so thank you everyone for watching i hope you enjoyed today's episode uh the next one will be next month that will cover the month of june but if you haven't done so yet be sure to subscribe to the youtube channel give the video a thumbs up subscribe to

the newsletter and join the discord channel and i'll catch you all next month thanks everyone