The Daily Gwei Data Pump #2 - Ethereum and DeFi On-chain Analysis

Transcript

hello everyone and welcome to the second episode of the daily grade data pump in these episodes i give an analysis of the different ethereum on-chain metrics as well as the d5 on chain metrics the last time i did one of these episodes was december 15th so we're going to be going over the data from december 15th to february 7th so let's jump right into it everyone so obviously a lot has happened since december 15th both on chain and off chain i did want to give a quick recap on the price since i guess it's not exactly on chain but it has a lot to do with of the on-chain metrics and i'm going to show you what i mean by that but basically if we go back to december 15th which is what about here you can see it if i scroll across here so december 15th we're at about

600 around that um and then since then we've obviously gone up to over 1600 right so it's been a pretty crazy ride in just a couple of months not even a couple of months so yeah it's been really wild to see that and of course if i zoom out here onto the one week chart we can kind of see just like how insane this kind of growth has been right like uh this is this is the chart from kraken so it shows kraken's chart shows basically the entire price history of ethereum basically from when it first went live because they were the first exchange to list ethereum i'm pretty sure and you can just see like this is crazy i mean you know this whole kind of like bear market that we just went through kind of just looks like nothing now that we're up here right

so really really cool to see that now that's obviously played a lot into the different on-chain metrics we've been seeing right price movements and price volatility on the ethereum network lead to a lot more usage because there's decentralized exchanges right there's different default apps like we have like even more complex d5 apps coming online now so yeah i'm going to be going through all that of course i'm going to be going through stuff got to do with the gas fees as well and kind of like the growth around that and the metrics around that too so yeah that's enough on the price let's jump right into the metrics so the first metric i've got here is one that i went through last time so this is basically a correlation between the btc and eth price so you can see here that during bear markets the correlation is quite high

and that's because like everything tends to fall together right bitcoin falls less than eight ethanol is less than than other coins but they all tend to fall together now you can see that you know during september october november december the correlation broke down pretty heavily now i guess you know to the end towards the end of december ethereum was bleeding against bitcoin pretty pretty brutally right it wasn't doing very well um you know the the ratio i think went to 0.022 or something like that something crazy right it wasn't doing very well at all um and then ethereum kind of sprang to life in january and and the correlation kind of started going back up a little bit so not too much of an update there i think i definitely went through this metric on the last uh data pump but yeah this is something

that i like to keep an eye on because it's just really really interesting to see how the correlations kind of change over time so this is a really cool metric i like to keep an eye on as well it's from into the block and what this shows is uh how many ethereum addresses on chain are in or out of the money with eth so basically if they're in profit on their eighth buy or not now 99 of all addresses are currently in profit because we we kind of hit i think you know over 1700 then we've come back down a bit you know current price is 1630 so there were some buyers up above this current price but you know the other day it was actually a hundred percent of all on chain addresses were in profit which was pretty cool but even it's still really cool that 99

of addresses are in profit right like just imagine you bought uh eighth in in in january 2018 at fourteen hundred dollars right you only have to wait like i mean it is kind of a long time it gets us like three years but i mean in we're spoiled in crypto i think you know three years is not that long in the traditional finance space but in crypto it feels like you know an eternity but you know after three years you were basically back in the money right back over um fourteen hundred dollars and i'm sure you know anyone who bought that price probably sold so it's kind of an irrelevant thing there but still kind of fun to see that all the people that bought and all these price ranges right are pretty much like sitting in profit right now now of course you know we don't know where the

price is going to go from here so could go back to a thousand dollars could go to 2000 who knows right i mean you know it just depends on what the market wants to do and then obviously if it went to under a thousand dollars you know or about a thousand dollars some people will be in loss some people will still be in profit and then that percentage will go down so i really like this this metric and they have a bunch of different ways of showing it here so they have like this this stacked chart here and you can kind of see like you know all this red is just like pain right all these addresses that hold each that is underwater and then you know as time goes on we kind of get this uh you know it goes from pain to joy and happiness right you

know i bet a lot of these people actually forgot that they had eighth right because when you buy it at such a high price and then like the price goes down maybe you didn't put too much money into it uh you're just like oh whatever it's you know it's it's lost money who cares right so yeah but this this also illustrates why bear markets are so brutal and why it takes so long for the price to kind of like continue going up right you need to kind of flush out i guess like everyone that wants to sell essentially so and the market has to regain confidence so we obviously had like a really major blow off top in the markets in kind of late 2017 early 2018 where it crashed really hard bounced up again as it usually does and then kind of bled out from

there and then you kind of have to have this long accumulation period where things are like bleeding and you're waiting for people to kind of like you know finally just get flushed out and then slowly you can start moving back up again and it works both ways like it it's this concept of like reflectivity right where the price is reflective in both ways and you know betting against you know the momentum is is very hard so you know and there's people that that kind of bought during this bear market too at specific price points that were underwater for a period of time um you know for example i bought eth i think it was like towards the end of 20 2018 it was october and i think the price was around 220 dollars and i bought a bunch of ether i'm like you know what this this feels like the

bottom you know uh let's just buy some ether now obviously that wasn't the bottom right the bottom was eighty dollars and that only happened you know that only ended up happening like in december but it's very hard to pick bottom so i obviously i didn't regret that purchase you know i i bought a 220 because i figured it would go back up to all-time high and beyond one day so there's a lot of people like me i have a lot of friends who do the same thing right i don't know i know one person that actually bought the exact bottom one out of all my ethereum friends only one person that i know bought the bottom uh and you know that was obviously an amazing trade but um yeah that that besides that most people i know bought on the way down so you also have

to account for that right where the people buying on the way down you know depending on where they bought maybe they bought at 700 on the way down you know as time goes on they make capitulate and be like oh well i'm just gonna ride off this buy right because in the depths of a bear market you just don't know you know you don't know when the bull market's coming back it's a completely different thing you have faith but you know if you need the money you're just going to sell so i guess that's kind of like why these these cycles take a long time and this is a great way of visualizing it so yeah enough about that let's move on to default growth now so d5 growth has absolutely exploded it's actually gone more than double since my last uh data pump video here i

think so december 15th we had 13.8 billion dollars locked in d5 we're now up to 34 billion at time of recording for this video so obviously i'm more than half here uh sorry more than double uh the the growth here the eighth growth as well has been very interesting so december 15th we had what was it seven million eighth in there now we have 7.5 million right i i've explained before how we had even more than that back in november where it was 9 million eighth in d5 um and we dropped because the uni swap liquidity mining finished and eth2 launched so a lot of that eighth went into eth2 which i'm going to go through um you know in this video i've got a bunch of eq metrics i want to look at but uh yeah so it's it's remained kind of steady it kind of fell a little bit

here but then it's been it's been trending back up which is cool to see here and of course btc locked in d5 has also been a pretty huge thing and d5 pulse actually has an entirely different section here now called btc at work where they basically show what the trend has been like here and it's been it's been pretty crazy right you can see basically you know 2020 i mean during i guess d5 summer is when we saw all the growth here so yeah pretty crazy growth here and it's continued growing there's 166 000 uh bitcoin on ethereum right now which i think is worth what 6.5 billion dollars which is a crazy amount and a lot of that has gone into projects like badger dao i'm not sure if if oh yeah they do they track badger dow here on um on d5 pulse here so badger dao is

actually eighth in tvl and a lot of that tvl is uh is bitcoin uh badger dow is for those who don't know it's a basically a default app that has a lot of um i guess like it's targeted towards bitcoin right it has a lot of bitcoin kind of opportunities to earn yield on your bitcoin and things like that so yeah that's been the growth there but we have a few new entrants as well up here you know alpha hamara is definitely a um a a kind of like standout here so you can actually see last time i did this video i don't even think i talked about it was only 100 million locked in it now it's up to a billion so we've had a 10 times growth in in less than two months on alpha here we can go back and we can see a

bunch of them here i mean you know everyone's favorites are still rpr you know make is still number one i think maker dropped to number two um and or other in compound got number one at one point but maker seems to be firmly in the lead now with 5.8 billion dollars locked you know eth 2.9 million each so that's by far the most amount of eighth locked in indeed five you know compound is a distant second at one point three million eth locked and then uni stops close they're at 1 million so yeah make is still number one there and there's a bunch here others here like cream finance harvest finance you know i mean yearns been there everyone's favorites are kind of kind of in here now but one one trend that obviously is playing out here is that we're seeing a lot of projects just get

more overall tvl right so if you go if you go just make as like the example here if we go here right and you go to december 15th the last time i did this the last video it was 2.6 billion dollars locked now it's you know 5.8 billion just two months later so it we've kind of like doubled the growth across the board of all these different apps and you know the ceiling i guess or at least like the the kind of um maximum amount of of value locked is kind of getting higher and higher and we're seeing other projects kind of enter this as well so yeah there's so many projects here now i mean it's pretty crazy to see how many there are 64 kind of projects here right now um so yeah really really great to see the d5 growth and yeah i think bitcoin on ethereum is also

a standout thing here the fact that it's still going up you know like this so fast i mean it's it's pretty crazy i mean it did dip for a little bit but it's definitely going back up and i think that's due to badger dao from being honest because i think badger dao launched around here so um yeah just i guess like shows like what the power of incentives will do right people are going to come over they're going to do different things within badger um you know and the top kind of tokenized btc is wrapped bitcoin second is actually hobby btc which is surprising there and then you have rain btc as a third here so yeah really great to see the growth in d5 here all right on to dex metrics so this dashboard i've gone through plenty of times on the refuel but i love this dashboard from doing

analytics that tracks the centralized exchange metrics um i basically visit this like almost every day pretty much it's such a great dashboard now uh obviously you know decentralized exchanges have grown a lot lately uh you know i think in particular uh not just like unity swap but other dexes are now kind of gaining market share here and you can see the volume is absolutely insane right 1.7 billion dollars in the last 24 hours 14 billion over the last seven days and 55 billion over the last 30 days and if we scroll down a bit here and we can actually scroll down to the charts that show the monthly trends um the the monthly trend here was was was crazy right like this was january we did 63 billion dollars of volume in january

which smashed the last all-time high record in september of 29 billion dollars and obviously in september of 2020 it was the middle of d5 summer right so we just smashed that we've gone more than double kind of there and i'm noticing kind of a theme here right they were more than doubled across all these metrics in a couple of months which is really really cool we're seven days into february right now we've already done 15 billion dollars you know if we keep going at this pace we should kind of overtake what we did in 2020 which is which is quite insane right so i mean i think the january 2020 uh 2021 volume is actually half that of the whole 2020 volume so if we do the same amount in february we will have done more volume in two months in 2021 than the

whole of 2020. so that's quite quite insane to see and over the last 12 months alone we've done almost 200 billion dollars and there's been 1.2 million total unique training addresses i've gone through how trading addresses aren't you know one-to-one to people before right where um people can have multiple addresses so i would say maybe there's like three or four hundred thousand kind of unique people here and even that might be being generous but it's always hard to kind of measure that and as i said you know there's been kind of different dexes gaining different market share here so you can see the the kind of uh the volume by kind of market here or by app so uni swap of course is number one it's on the left side here i'm just looking at so sushi swap is number two which is actually

caught up a lot so sushi swap was um i think the last time i did the video was kind of like 200 million dollars locked and like kind of thought of to be dead and all that sort of stuff but since then it's come a long way uh and they're you know they're doing a lot of volume it's uni stop's still doing 51 of the volume but sushi swap is now doing 24 0x has actually been a standout over the past couple months as well they're now doing over a billion volume they weren't even really on this chart before they were pretty low here uh curve continues to do good volumes right a billion dollars here and then you have like kind of this balancer for almost 500 million over the last seven days uh dydx at 241 million and dydx has grown a lot recently too

and then a bunch of the other ones here so yeah it's it's funny because you can actually go here and see the historical thing where uni swap kind of dominated right you can see pink on the on the left chart here pink is uni swap and purple is sushi swap and you can actually see sushi swap kind of like i guess towards the end of last year you know it had volume but it was kind of like stagnant it wasn't growing and now in january of 2021 you can see that sushi swab grew a lot right curve grew some more here curve is in brown and then 0x is in is in kind of uh gray down the bottom so we had like this kind of i guess um diversification happen within these different decentralized exchanges which has been really really cool to see and one thing you'll notice here that

one inch isn't here obviously one inch kind of sits on top of all of these kind of protocols so you know i i think there's a separate dashboard for one inch i haven't got that up right now but you can see that on the right hand side here they have a dashboard or they have a table sorry that shows number of traders for the last seven days one inch is leading by a lot right uh sorry unistop is leading by a lot but one inch is actually second so i would say that one inch is one of the top kind of like volume dexes here but you know one inch is a dex aggregator so it's not a dex itself right uh they do have their own desks called moony swap which is number 11 down here if you actually see on the left hand side

um but yeah i think there's a there's a different dashboard that splits out their volume there so all in all a very very big month for decentralized exchanges as i'm sure you're all um aware if you've been paying attention uh and yeah i mean it's just crazy that we're consistently over a billion dollars of 24 hour volume when less than a year ago you know uni swap in may of 2020 was only doing 10 million dollars a 24 hour volume now it's doing over a billion dollars so really really impressive growth there so on to the metrics from glass node here so glass node's actually one of my favorite websites to go on to track different metrics here you should definitely check them out but basically what this metric is showing is the number of ethereum addresses with a balance of more than 10 000 eth

now you can see that the growth here has actually been quite uh quite crazy right uh from i guess like the end of december and as i explained before the eighth btc ratio was falling towards the end of december so people weren't really stockpiling eth then the momentum shift shifted right and the ratio went up and eve started kind of like exploding i mean uh towards the kind of end of december he's basically teleported through the the late hundreds and went into like the thousands very very quickly so you can see here that uh it bottomed at december 28th where there was 1059 addresses holding more than 10 000 eth now there's a thousand and eighty-six addresses so that might not sound like a big jump but that's like 35 new addresses or i think i'm doing my math correctly there um you know uh probably more than that

or that are holding more than ten thousand each right and if you do the math that's over 350 000 if going to kind of these addresses but uh that's much more than that because this isn't just like 10 000 this is 10 000 8 and above right so it could be someone holding you know 20 000 or 30 000. so the growth here has been really cool and this this is just showing kind of uh december to i guess it's just showing to january 10th here i think there's maybe a delay or maybe i was playing with the chart before okay i reset the chart here we can zoom out a little bit actually so to today it's actually more it's a thousand one hundred and one okay so i had the chart messed up there so i think that's what since since december 28th um you know it's

another kind of 60 60 or 50. now the 50 kind of addresses there 40 or 50 uh so that's even more right and then if we actually go down to where it bottomed in kind of september or october right it was you know it's about 80 or 70 new addresses here i'm failing my math today so yeah and this tracks it all the way kind of back to uh i guess where did the tracker to yeah when the ethereum network launched and you can actually see how this evol has evolved over time right and throughout january 2017 or sorry throughout 2017 uh it kept increasing and then it kind of it kind of peaked in in march of 2018 and a thousand uh 127 addresses holding it here

it dropped very very rapidly throughout uh i guess 2018 dropped by about 80 and then it went up again through 2019 if you don't if you guys remember the price went up through 2019 as well uh to about 380 so back up to 1020 here 1 120 sorry and then yeah we just trended down since then and now we're seeing this kind of like spike again right and whales kind of collecting ethan and buying up the eave which is a very positive sign as you can see right they usually kind of follow price it seems um you know so you can see here in 2017 was actually a very positive sign that this was happening uh and then 2018 obviously bear market you know whales that kind of getting out

yeah what's interesting is whales kind of weren't stacking e through kind of 20 20 here right they kind of like offloaded maybe because they stack during 2019 uh but then we can see that they've started stacking it again here so really positive kind of growth there and you know glass note doesn't just show uh a 10 000 ethan above here they actually show 1 000 ethan above so you can kind of see what's happening here that seems to be going down which is which is curious um you know maybe this is people you know going into the ten thousand or or more kind of eighth category maybe they're offloading and they're going into like the hundred or eight hundred uh eth or more category right there's a there's a number of reasons here but what i like to look at is like the smaller units here so you can see the

addresses with the balance of more than one eighth has been going up very steadily right kind of fell off a cliff here a little bit i wonder why that was uh maybe that's an area with the data but yeah generally the trend has been has been up no matter what the price is doing right and then addresses with a balance of more than 10 eve has been going up steadily as well again we're seeing a little bit of a drop off here i'm not sure why that is but basically yeah a bit of a drop off here but generally kind of up here and then addresses with a balance of 0.1 or more eighth which is actually not a small amount today it's like 160 dollars right at time of recording and this is is is generally trending up as well but i think you know

it might be trending up too because uh 160 dollars is like a couple of uni-swap trades these days right so and you need eight for gas so definitely that's playing a part into it and then addresses with a balance of more than 0.01 eth which you know at current prices is 16 is going up too but at the same time you know there might be a lot of addresses that have kind of 0.01 each stuck in it because of the gas fees too i don't i don't think it costs 16 dollars to send each unless the gas is really high but in general i can see that playing a part but again this is going up to right here now there is another metric where you can actually see the dollar amounts but this is part of the t3 tier 3 kind of data here on glass node

which you have to pay extra money for which i don't have so i can only see the data from a year ago so there's not really any point kind of kind of looking at this data unfortunately but yeah there is that option there if you do pay for for that kind of service with with that so this is another kind of metric from a glass node here that shows the ethereum balance on exchanges or the eighth balance on exchanges so if i reset the kind of time frame here to an all-time kind of stacked thing you can kind of see you know how it's how it's changed over the years so during 2017 the balance or 2016 2017 the balance of ethon exchanges kind of dropped dramatically right i think it peaked at what was it uh what's the total here i don't think

there's a total i can see here on the left here yeah it peaked at about 20 what one million which was actually a large chunk of the supply in 2016. i think the supply was maybe 80 million eighth back then and then you know you can see it kind of dramatically falling right up right up until the end or right up until like february 2018 here and it fell to about five point what c or six million here just eyeballing it and then you know it kind of like skyrocketed kind of back up i guess like during 2018 and 2019 and even 2020 all the way back up to about you know i guess 18 million eighth and then when the kind of bull market really kicked off in in august of 2020 we've seen like a dramatic amount of eighth come off exchanges i think we

peaked up here at just eyeballing it maybe 18 million ethan exchanges and then we've gone down and it's like uh what 14 14 million eighth i would say so four million eight has come off exchanges here um and i think you know with eth it's funny because when eth gets off exchanges it doesn't necessarily mean it's going into cold storage right or to someone's kind of wallet it could also mean that it's going into defy and there's a chart that i i kind of posted to twitter um a little while ago i don't think i have it up here now but i can get it up it basically shows that um the the kind of like eighth in smart contracts versus the eighth in uh in centralized exchanges now if i check here let me check quickly i don't

think i've got no i don't think i've got it there but if i go to compare it here and i'll actually show you what this looks like so this is actually neat with glass node you can compare different metrics and i know i'm chilling glass node a lot here and i'm not paid to do that or anything like that i just really enjoy this website so if i go to exchange balance percent right um and then i change the second metric to ethereum and i put in here a smart contract balance supply and smart contracts right and i always like to do the moving averages just to smoothen the data out so i have a 14 day moving average and a 14 day so you can see here right on this chart the pink line is the ethereum balance the eighth balance on exchanges and the

green line is the eighth balance in smart contracts now you might notice this giant kind of spike on the left hand side here where kind of like i think my camera is covering it but basically the ethan smart contracts was four percent and then it spiked all the way to 25 or 23.4 percent now the astute observer and someone who's been around for a while would know exactly what happened here but for those who don't if anyone remembers the dao right the first ico on ethereum or the first big ico on ethereum and it got a lot of eth onto kind of like the smart contract here uh you know it raised a lot of eighth and then we had the dow hack kind of happen right unfortunately and then that eighth kind of came right out of that contract but we did kind of finish up higher than

what we were and then during 2017 um it's funny because you would have expected during 2017 during ico mania ethan smart contracts to kind of go up here but actually if i remember correctly in 2017 a lot of kind of like icos were done with just like externally owned accounts um or just normal ethereum address addresses or ethereum accounts not smart contract accounts uh so that's why you don't kind of see a spike here but then you know during 2019 it went down even more i think 2019 was pretty brutal in terms of the bear market and people were kind of like exiting you know where they had to eat we had maker during kind of 2019 and i think people might maybe got liquidated and stuff like that because of the bear market

and then though you can see in 2020 that we've had this massive kind of like rise of ethan smart contracts i think it bottomed out in june at about 11 now it's up to kind of 18 percent and in the same time we've seen eth kind of on exchanges drop off kind of dramatically too you can kind of see the green and the pink lines diverge here now this is really cool because that means that this eath and i can just kind of zoom in here that eighth is going from centralized exchanges to smart contracts not all of it but but some of it right um which which i thought was was really interesting and i posted this to twitter a few times and it kind of speaks what we're trying to do in ethereum right we're trying to go bankless right we're trying to get off

these centralized exchanges and get our ethos off there and put them into smart contracts so i thought that was really cool and yeah this the kind of balance of ethan exchanges now is only 13.5 percent out of a 112 113 million dollar supply uh 13 kind of 113 million supply not dollar supply sorry which means that you know i guess 13 of that napkin math is maybe 12 million or something 13 14 million eighth on exchanges still which isn't too much right and i think we're seeing more and more kind of get out of exchanges uh as time goes on as this bull market goes on as more people kind of like buy eth and want to take it off exchanges and kind of just keep it in cold storage or put it into d fight right which i think is very very

positive all right next metric here is obviously the total transaction fees paid on the network so that's been like a sore spot i guess for a lot of people lately uh the gas fees have been incredibly high now what this chart is showing is gas fees as as measured in if right so denominated in eighth not denominated in usd and it's only shown in 2020 so if i actually zoom out here uh to all time you can see that even though it's just transaction fees denominated in eighth right it's still like a lot of eighth which is which is quite crazy and it's been going up uh pretty pretty crazily right but then you can go to denominated in usd and if we once we load this you can see that growth makes 2017 like the end of

the 2017 bull market look like nothing right and we actually uh kind of have have done 22 million dollars of fees over the last 24 hours or so i think um uh which is which is crazy i think you know that that's more than kind of like bitcoin's uh all-time record sort of thing so and and obviously the gas fees have been going up uh even even higher than that right it's pretty crazy because like now the kind of gas space up to where the price kind of is and and i think like i mean it's it's just i don't i hate to say it but i don't expect this to kind of like go down while there's a bull market happening while there's volatility happening because i've mentioned this before and actually saw hayden adams recently tweet about this and confirm it that a lot of the transaction activity

on the ethereum mainnet is arbitrage bots now what these bots do is they basically arbitrage between different liquidity pools on ethereum so for an example here they'll arbitrage between sushi swap and uni swap right if there's an eth usd power on unisop and there's an eth usd pair on sushi swap they'll do an arbitrage when there's an arbitrage opportunity open there and these bots will just outbid each other right no one when you're doing arb you don't actually care too much because it's basically free money besides the fees right so and and i mean for those of you who don't understand what an arbitrage transaction is it's basically you know you can buy something cheaper somewhere else and sell it for nothing for for more on another exchange and this has been happening happening within the centralized exchange space for a while and if you ever wondered why all the

prices stay together and why they don't actually get to to ahead of each other on different exchanges this is why there's arbitrage bots that kind of close the loop so to speak here so when price gets really really volatile um you know say eth just spikes up like five percent in an hour or whatever the bots just go into overdrive right they have to close all these arbitrage opportunities and that obviously pushes up the gas price because all the bots are trying to outbid each other and it gets quite crazy so that's one of the reasons why the gas fees spike during volatility another reason is because people if it's going down if the price is going down people are trying to cover their leverage positions right where they might have borrowed some funds and the price is going down really rapidly

and they're in like oh no mode right where they're like oh i got to close my position before i get liquidated so there's that and then there's also liquidator bots right that liquidate people and will also kind of like uh do kind of like a gas wall will beat up the gas because they don't care because they're about to kind of earn some some nice money um so there there's a lot of that stuff that goes on so you know as we go through this bull market the fees are going to definitely i think uh keep going up because of that definitely but you know hopefully as we progress um you know there are kind of pauses here i think right now it would be kind of a pause i can see here the gas price is what 100 way right now for you know 138 for

rapid 123 for fast you know that was over 200 for the last couple days so we have some relief but still not ideal and you know not ideal for end users but ideal for the network i mean this is this has been insane this growth is just crazy right uh and this has been sustained for a few days now or at least i mean this spike here has been sustained for about a week um and the high fees in general have sustained since the start of d5 summer you know it's funny like the the historical way price i think you can actually see it on gas now.org you can go back and see that even just like early last year early 2020 we were we were blessed with like low double digit way and now you know you'd be very you know

kind of lucky to get double digit gwei on most days so and that's high double digit way so yeah it's been it's been very interesting to see the kind of gas kind of prices evolve uh here and how that's been going and you know maybe one day this is a blip right i don't know how high these prices can go before it becomes unsustainable as you know it's it's sustainable as long as kind of people are willing to pay the price right and maybe it goes you know way higher than this maybe about towards the end of the bull market we see like a thousand way or above just because there's so much volatility right there's so much craziness going on um you know and you have to when you when when you're talking about these arbitrage things it's not just between the eighth usd pair it's between

literally every token pair right that has a liquidity pool within different exchanges so that could be balancer or uni swap or sushi swap or moony swap or zero 0x right there are so many different liquidity pools now so and then you just have you you you kind of like put on normal user usage on that right you put on smart contract deployment which takes up a lot of block space it just it gets insane so i wouldn't be surprised to see sustained four-digit way towards the end of the bull market as we get into like the crazy stage um but i don't i don't suspect that to sustain itself right because like for very long because that's insane i think you know at a thousand way i think a normal ethereum transaction would cost maybe 50 which is one of the cheapest things you can do on

ethereum so if that mean if that's happening then i think smart contract kind of interactions would be in the thousands of dollars some of them already are but i would say that most of them would be in the mid thousands of dollars which is obviously unsustainable right there's only so much money people have to spend on these fees um but still in in general i think that you know hopefully by that point we have eip1559 on the network so that some of these fees are burned but we'll have to we'll have to wait and see for sure so speaking of kind of like i guess like gas usage and kind of ethereum network usage this that's really cool it basically shows and i think i have to refresh it here yes i have to refresh it here let me get that let me get that up oops let me refresh

the page here to get the latest data um basically uh what it shows is the number of smart contract calls basically the number of people interacting with smart contracts and how this has kind of gone up over time now you can see that during kind of 2017 it went up a little bit kind of plateaued during 2018 right we had a bit more of use in 2019 and then just an explosion during 2020 and we've kind of plateaued lately i think uh in terms of smart contract calls but a lot of this has got to do with d5 all right a lot of d5 growth happening during uh specifically i mean a little bit in 2019 but specifically in 2020 i mean you can see here january kind of 29 2020 was what 321 000 calls kind of a day and then uh up to

here now we have like 741 000 so there's a lot of different kind of calls happening here and this tracks the gas price too right if you want to do a comparison between this and kind of the fees um you would see that the fees are going up with these smart contract kind of interactions and these interactions are both people and bots and anyone kind of using the network and kind of i guess like the same reasons that i kind of explained before about why uh the gas prices are going up like the r bots and stuff they also do this right they interact with smart contracts and they call them and stuff like that so i thought this was a really interesting start here we actually hit an all-time high in 2020 of what 790 000 and we've come down since then but i expect we're probably going to go back

up there um and and kind of like maybe go to a million over 24 hours we'll have to see what happens there all right on to the eth2 metric so i promised last episode that i would do some eth2 related metrics here and i think this is a good starting point so this basically shows the cumulative eighth cent to the deposit contract over time now you can see here that you know we had like a very slow kind of start during november right the deposit contract was deployed november 3rd and then you can kind of see the grind up here now remember if you remember correctly um 524 000 each was needed to bootstrap the the chain and people were kind of worried that we wouldn't get to that but you can see here as we progress we got to like i guess

by november 20 we're at 148 000 and then it just grew exponentially right up to november 24 where we had 700 000. now november 24 was the the deadline for getting this kind of ethan um and a lot of people were just waiting because there was no rush to get your ether right because there was no benefit for being early essentially so we got that we it happened right um and then since then we've seen this steady kind of growth right it's been it's been quite steady with spikes here and there and we're almost at three million kind of eighth now in there which i think is really really cool and this is before like a lot of the other solutions have gone live like rocket pool and um you know coinbase with their staking and stuff like that there are some centralized exchanges in here but a lot

of it is is yet to come i think so yeah almost three million which last time i checked you know if we if we go off the price i think it's about four billion dollars worth of eat or something like that which is kind of crazy right four billion dollars worth of eighth locked in this kind of deposit contract that's that's in e2 staking and validating the chain which i thought was was really cool so the participation rate is something that i like to keep an eye on for eth2 now for those of you who don't know what this means i'll quickly explain it basically in eth2 there are validators that people run uh per 32 eighth state that they have so if you have 64 ether stake you will run two validators essentially now what the participation rate measure measures is what kind of percentage of

these validators are actually online attesting to blocks and proposing blocks now you can see here right when that when the chain kind of launched on december 1st you know while it was coming online we kind of like went from i think what 86 percent up up and up and up and then by basically a week in we had 98 99 participation which is absolutely amazing and there is some variance here you can see like sometimes there's a bit of a drop off down a bit of a drop off down but i think the lowest point we've fallen for fallen to was about 95 so we've basically maintained 95 percent or greater but network-wide participation since launch and that's basically perfect i mean you're never going to get 100 for one reason or another right but uh you're going to get like a high

98 99 as long as the network is running fine and that's what the kind of researchers and developers wanted to see and that is absolutely fine if participation rate drops too low i think if it drops below 66 percent um the the network can kind of halt um so yeah we want to see this as high as it can be and it's really cool to see that you know basically since it launched it hasn't dipped below 95 right it's been quite steady we have some dips here and there and i would actually like to investigate why we have these sudden dips uh for one reason or another maybe we have these dips when there are client upgrades released you know prism releases a client upgrade uh every kind of few weeks i think and maybe when everyone is like upgrading it once and they have to

restart their nodes or restart their validators we kind of see this drop here but i have to check in with that i don't know i'm just speculating for now but still a very very cool kind of stat to see here and you can see the balance distribution here as well so on the on the left hand side here you can see the number of validators that have kind of uh i guess 32 eighth in them and then more than 32 eighth because you know obviously as people are staking right uh their balance increases because uh they're getting rewarded for for staking so you can actually see how many validators have been rewarded by by kind of like how much and there's a very lucky validator here that is uh basically way ahead of the pack and it's got a lot more rewards than the other

ones right and then over here you can see that um some of the validators actually have more than 32 ether in them um i don't i'm not sure why this is it might be just it might just be someone who's kind of like maybe messed this up or a few people have messed this up um but yeah it's interesting to see that there but basically this is what you really should pay attention to and it's nice to see that most validators are around kind of the same thing here and there's like a nice distribution but yeah this this single validator there's that has got much more rewards than everyone else is uh he's pretty lucky right so this is another really cool chart to keep an eye on this one as well eth1 deposit addresses so this shows kind of like where the eighth came from so you can see one

address here where 13.65 of the eighth currently validating came from these aren't labeled but i'm pretty sure this is kraken uh and then there's a bunch of other kind of whales here i think binance is in there lido staking is in there celsius is in there i don't know what which ones they are here but i'm pretty sure that they're in there and then the rest of them are just like probably individual whales or other companies that we that i don't know of like i think there's bitcoin sweets as well and then the majority of it is actually quote unquote others so this is actually really great for decentralization where uh basically the others category owns way more than 51 of the the kind of network here or validates way more than 51 of the network and you know even if all these kind of entities banded together

i think just eyeballing it here i don't think they have enough to do any kind of attack maybe they have enough to do kind of censorship attacks because i think you only need 33 for that but they would have to definitely all band together and then i think if someone finds out that they're doing this they're going to get slashed as well so and you know i i don't imagine kraken with 13 percent of the the kind of eighth in here i don't imagine they want to get slashed right so definitely not too big of a worry here with that but good to see this distribution nonetheless so last thing here from the eth2 side is a graffiti word cloud now for those who don't know each validator that you have you can actually assign a bit of graffiti to it and every time you propose a block that

graffiti kind of gets put um puts up on this but it gets put up into like the the eth2 kind of network and then uh the beacon chain website here basically shows it in this world cloud so this is the word cloud of the 25 most occurring graffitis now welcome to the new beginning is the biggest here that's actually part of a staking pool and as i mentioned before bitcoin swiss is kind of staking here i think this is actually a cool way to see all the people that are like the majority stake on the network because they're the ones going to be proposing the blocks the most of the time so cream here staker you have like a bunch of other ones like lighthouse this is the default kind of i mean you can see the clients here right this is the default graffiti

on a lot of them um but yeah really cool to see i think there's like a pool here as well i mean validating from dap node okay well that's a default from dap note as well so yeah this is this is really cool to see uh and then a pop-up as well here right so yeah this is just really really cool i thought that um it was a really good way to visualize like what kind of participants are on the network and yeah as i said anyone can put their graffiti here but if you wanted to put up if you wanted to be shown in the word cloud you would need it to be the 25 most recurring graffitis and to do that you need to be one of the biggest stakers uh so yeah to get in here you'd have to be basically a whale or like a staking

pool or something like that but still you can actually look at your graffiti on here you just have to kind of sift through it won't show up in the word cloud it'll show up in the other kind of metrics that uh that this website tracks so yeah definitely go give give that a look if you're interested in that and as always all the just all the links from today's video will be in the description so you can go check out all this stuff for yourself and you know play around with the different metrics and things like that which i think would be a really cool cool thing to do all right on to data from the block so uh this is the grayscale data so for those who don't know grayscale is a company that offers uh kind of tax advantage products uh and they have a btc product

called gbtc they have an eth product called ethy and people buy into this because they want uh kind of like tax-free trading of ethan btc and their retirement accounts or whatever and this is a product that's available to them because there's no etf for eth or btc yet and you can see here that the eth holdings in grayscale's ethereum trust has absolutely exploded right i mean kind of like throughout 2020 it went from what was it essentially 500 000 eth to now almost 3 million so that's a seven times increase and you can see it kind of like flattened out here and that's because they had to close the fund for a little bit and they reopened it recently and if i go to like the one month uh here i can actually see when they reopened it and they've since reopening it just a few days ago they've added

another four hundred thousand each i think i'm sorry forty forty thousand eight my bad one four hundred thousand which is pretty cool as well but since i did the last video on december 15th uh they seem to have added what was it about 500 000 but yeah as i said i think they paused yeah i think they actually paused it after i did um that video it looks like but there was also and i explained this in another video the kind of premium coming uh coming into fruition where the way these products work is that the eighth locked in here has a six month kind of uh sorry the eighth in here has a six month lock where the price of it can get way ahead of the actual eighth price so i think it got like 10 times ahead of the actual eighth price

and then arbitrages will actually close that loop there so yeah that was really really good it's cool to see that more kind of 80s being sucked up here there's more institutional demand more demand for people who want kind of i guess uh exposure to to eth right and this is currently worth four point seven one no over five billion dollars right of ethan here and this is actually a chunky amount of the supply i mean three million eighth if is like 2.5 percent of the supply or something like that or and that's as much ethers in eth2 right so we have these ethers just being locked up in so many different places i mean it's quite bullish and you can see that i mean these metrics all popped off it popped off after d5 summer basically for ethio so yeah and as i was talking about the

premium got really ahead of itself and then closed i mean the premium was even more ahead of itself in 2018 here but recently it kind of got ahead of itself a bit too and then it kind of collapsed and the premium is not very high but as you can see the premium goes up and down up and down and i expect it to keep going up especially during a bull market where there's lots of demand for these products essentially so another chart here that i i went through before on glass no but this is another way to view it here uh because uh on glass node i thought i said that i couldn't see the dollar amounts uh of of how much addresses with the balance of over x amount in dollars so you can actually see here that uh the balance of over 1 000

kind of dollars worth of eighth is skyrocketing right there's 1.62 million addresses with a over a thousand dollars of ether in them and that's because the price has been going up too so you can see like it's it's skyrocketed after the price basically double dry in a few days um and then and then uh while it's with over a ten thousand eight uh it worth of ethan them as well right here over a million kind of i guess you can see it if i do yeah if i click through you can actually see the growth um over a million dollars has actually skyrocketed as well right and then over 10 million dollars has has started to kind of i guess if i do this it skyrocketed as well but yeah it's because it's collapsed but yeah as you keep going down there's not that many addresses with 10 million dollars

of ether in there it's 1.72 1720 kind of addresses with more than 10 million ethernet so yeah but yeah i particularly like this metric where there's you can see like you know a thousand dot more than a thousand dollars in it is really great because it means kind of like more and more people are kind of you know have eth or have more value in ethan we have that means we have more economic bandwidth for the ethereum network so i think that's really cool and also the more than ten thousand dollar dollars worth of eat as well because that's not actually that much it's you know that's less than ten eight these days right um so i think a lot of people who bought eighth during obviously the bear market have held on to it and now it's you know they're going into kind of like these

these addresses here so another really cool metric from the block here uh percentage of the ethereum supply that is active this this one's really really awesome as well so you can actually see that uh basically uh 96 of the supply has been active within the last five years right um but then as you keep going you can see that less and less are active as you keep going on so only 87 has been active in the last three years in the last year uh 66 has been active in the last 90 days 50 and then the last seven days uh kind of 28 of the supply has been active now i think it's funny like if i i can't really zoom in too much here i don't think if i go

to the three months you know you might be able to see a noticeable kind of i guess like spike in the active supply around eth2 because there are a lot of eth2 holders that were waiting you can actually see a noticeable spike here right percentage of supply that was active in the last kind of 90 days in the last one year and then i guess in the last three years not really right so yeah i guess in the last one year people were holding it and waiting for staking you can see kind of a i guess on the 24th of november it going up a little bit here or towards that date going up there so that might be one explanation but yeah i think um looking at kind of like i mean there's a there's a chart on glass node that shows this as well

actually if i bring that chart up i can show you it's huddle waves it actually um does a really good job of kind of showing it as well where it shows like the percent of the active supply uh it wants to load here yeah so you can sorry percent of the supply that hasn't been active so you can see here that you know i i guess for the last five to seven years four point five percent of the supply hasn't been active um in in the kind of this like you know for that long which means that supply hasn't been active since ethereum's genesis because ethereum's only i think five or six years old at this point um which is which is really cool here and then you can you go down a list here you can see on the right right hand side and see you know how much of the eighth

has been active when and things like that so it's actually really fascinating to see that you know a large chunk of the supply hasn't been active for longer than a year right you can see 15 16 is 31 49 plus five over 50 of the supply hasn't been active for more than a year right so it's either sitting in cold storage or maybe it's sitting in kind of a make a vault or something right sitting on another d5 app or it's like sitting in eth2 at this point so yeah really really cool to see see these stats here and cool to see the block have a dashboard for it as well so the transactions on the ethereum network have obviously been going wild lately right because a lot of people are doing a lot of different transactions and it's funny because we were actually had

an all-time high back in i think that this is the end of this was literally the exact end of the bull market i think 10th of january 2018 we had 1.24 million active ethereum addresses based on the seven day moving average now we spiked up to uh more than that i think uh wait was what was this one point what two four million this is one point two four minutes so we basically broke the record again on the 13th or 14th of august which i think was the peak of d5 summer then we came down and we've been slowly creeping back up and we're pretty much like above all-time high now i think yeah we are so basically an all-time high of kind of like active uh daily active ethereum addresses now this for me oh sorry daily uh daily

transactions for ethereum this for me is one of the most bullish metrics because the more activity on the network right the more transactions going through means that people are doing more especially at higher gas prices means people are doing more economic kind of activity that's worth more to them which means that i think the market is is more bullish right you can see during 2018 basically there was a period where like it just plateaued and then like towards at the end here like when you know when uh i guess like we really hit the bear market we went to like 80 dollars towards the end of 2018 you know we had like a kind of it fell off a cliff yeah and then kind of went back up with the price i mean i wish there was a way to overlay the price here but basically the price

went up to like 380 bucks a year then came down again and then all through 2020 we saw the price go up right then the price came down again the price has been going up so it does follow price right and i wouldn't say it's like causation where the daily the daily transactions kind of show tells you that the price is going to go up i'd say that like they go up together but if we keep seeing it kind of like trending up i think that's a very positive sign for the network in general so not nothing you know bearish there basically and this shows the monthly overlay of the transactions on the ethereum network not just the seven day moving average so this gives you a bit of more of a macro picture of how it kind of works out and again like if you were to overlay

price here you would see price spikes up you know go down had a little mini bull market in 2019 go down again and then up throughout 2020 as well all right last metric is the ethereum hash rate here so obviously as the price of eth goes up and as more fees are paid to miners the profitability of mining goes up right now you can see here that during the bear market i guess like its hash rate was kind of flat trending up a little bit very flat whereas bitcoin's hatch rate was actually going up right because its price was going up more than eighth and things like that but you know since we saw kind of like eighth come back since the mid 2020 we've just spiked up like crazily i think this is we're at all-time highs right now and it's not just because of the eth

price it's because of the fees paid as well which actually if i get out of this and i think uh the block has a kind of um has a chart for this yeah they have a minor revenue chart so if i if i kind of bring this up here um if it wants to to work oh yeah there we go so you can see the minor revenue the block subsidy in blue which is aka the block rewards so every ethereum block that's produced produces two eth per block for miners and then the transaction fees in this kind of like red color here now you can see the transaction fees are actually taking up a large part of the uh kind of money that miners are making right and we saw this kind of start playing out in d5 summer and it kind of like became i guess like a quarter of the

revenue they were making now it's you know i think this was maybe just eyeballing it here maybe like 40 as of this month and it's only been seven days so far i think the transaction fees are more than 50 of the minor revenue so far right and this is actually not a good thing this is uh actually security concern because it leads to mine at least the instability with with miners so this is one big reason why we want erp 1559 is in as well because the fees paid to miners is actually meant to be a bonus it's not meant to be the way ethereum is secured ethereum is secured by block rewards in aka the subsidy in eth2 it will be secured by block rewards and the subsidy because e3 has perpetual issuance but

very low perpetual issuance and the transaction fees are just gravy on top of that so we need erp 1559 implemented to burn most of these transaction fees or at least a portion of them and the miners will still get paid fees but it won't be like the whole fee right and that kind of leads to better incentives for the network and doesn't and kind of like fixes that instability or at least makes it a lot better but it's still very interesting to see you know why the ethereum hash rate is going up right why you may have seen miners kind of like fighting against eip1559 on on twitter but at the same time these miners are making an absolute killing right in in this month here they basically the the kind of like subsidy in the transaction fees total to 830 million dollars in january

right of minor revenue that's absolute absolute killing right and you know this eighth as well if they're stockpiling it they'll be able to be big stake is within eth2 so i i mean they're making as much money as they were as ever right now especially from the fees right um you know i actually the subsidy in january of 2018 was more than it is today it was 3 8 per block back then i'm pretty sure whereas it's only 2 8 per block today and they're still making a lot right from the subsidy and the fees basically so yeah if you account for all of that miners are making a lot of money here i'm not going to go on a rant about miners of course but yeah it's interesting to see why they would be fighting what is essentially a pay cut right but at the same time the pay cut

wouldn't be all of the fees it would maybe be like i think at best a third of the fees maybe i i haven't i've seen numbers as low as 20 thrown away around as well so like a fifth of the fees would only be burned and the rest of them would still be paid to miners so yeah that kind of explains why you've been seeing that kind of play out within i guess the ecosystem and within like the the twitter article or the twittersphere as well that's it for today everyone thank you for watching the latest daily grade data pump i hope you got a lot of value out of that as i said i will link all these in the youtube description you can go check out these charts and metrics for yourself you can play around with them you can do comparisons between them

i i love on chain data i look at a lot of it i mean there's so much more i could have gone through but i didn't want to you know make this video go for like five hours basically but there is data for everything these days and if you dig right if you look if you basically pay attention to the data you can make some informed kind of decisions around investments you know not just the data got to do with ethereum network but the data got to do with d5 as well so there's a lot of different default metrics you can look at and you know i'll go through that in the next daily grade data pump actually i'll focus more on kind of the default metrics but there's you know for the specific apps there's a lot of things you can look at and it's a way to inform your investment

decision and as an example here if you had looked at sushi swaps kind of um you know metrics back when i think the price was like 60 60 cents or something like that you would have been able to spot that their metrics were still you know were flat but growing a little bit right you know everyone thought they were dead but they weren't they still had 200 million dollars locked in there they were still doing decent volume they had plans you know to to kind of like introduce new liquidity mining and stuff like that which they did and now sushi swap is rivaling kind of uni swap with volumes you know it's grown a lot right and total value locked so yeah these kind of insights can be drawn directly from on-chain data and not a lot of people are looking at it right more people are looking at it now than

were maybe a year ago but it's still like a superpower it's still a very nice way to kind of like get ahead of the pack so i definitely recommend going and checking out all these sites they'll be linked in the description but yeah thank you everyone for watching this video i'll be back next month with a fresh one so subscribe to the youtube channel so you don't miss that uh join the daily gray uh kind of discord channel all the links are in the description you can subscribe to the newsletter all that good stuff and don't forget to give this video a thumbs up so yeah thanks everyone for watching and have a great day