Important events
Jul 192023
ETH/USD: Ethereum Continues a Fairly Steady Climb as Compound Debt Surpasses $1bn
- Ethereum has been steadily rising over the past 6 months, with an almost 23% increase.
- The level of Ethereum-based debt facilitated through Compound has also reached a yearly high of $1bn.
- The heightened level of Ethereum-based could indicate renewed interest in DeFi and the Ethereum network as a whole.
The second largest cryptocurrency in the world by market cap has been on a fairly steady upward climb over the past six months. It also benefited from the recent ruling that Ripple’s XRP token could not be considered a security – contrary to claims made by the Security and Exchange Commission (SEC). ETH saw a more than 7% rise on the 13th of June, alongside gains made by the wider crypto space.
Popular DeFi lending platform, Compound, also saw its outstanding debt on the Ethereum network reach over $1bn this week – a level which has not been seen since September 2022. A high volume of outstanding debt might indicate that interest in DeFi activity is seeing a slight resurgence after having fallen significantly since the market crash of 2022.
(About Ethereum)
Ethereum is a decentralized, open-source blockchain platform that was first introduced in 2015. It is built on the idea of smart contracts, which are self-executing contracts that automatically enforce the rules and terms of an agreement between parties. The platform allows developers to build and deploy decentralized applications (dApps) that can run on the Ethereum network. The native cryptocurrency of the platform is called Ether (ETH) and it is used to pay for transactions, gas fees, and as a store of value. Ethereum is known for its programmable, versatile and secure smart contracts, which have enabled the development of a wide range of innovative dApps, such as decentralized finance (DeFi) platforms, non-fungible tokens (NFTs), and more.
Illustration by TradingView
Jun 272023
ETH/USD: Ethereum Lifts Alongside Bitcoin in Renewed Optimism for Crypto Sector
- ETH price rallied alongside that of BTC last week, in sustained optimism for the future of the sector.
- Some analysts believe that the second-largest cryptocurrency could soon return to levels above $2,000.
- Last week, Ethereum devs also proposed drastically increasing the amount of ETH needed for native staking by a factor of 64.
The crypto market seems to have somewhat shaken off its slump this year, after Bitcoin volumes and price surged last week due to fillings for spot BTC ETFs made by the likes of BlackRock. Ethereum too has been experiencing its own rally, after having risen by more than 10% last week. Some analysts believe that the price of ETH could soon return to levels above $2,000, which have not been seen in ETH since April this year.
Last week, Ethereum developers also proposed increasing the minimum amount of ETH required to natively stake by a factor of 64 – something which has received a lukewarm reception from the community. That would bring the amount of ETH needed to natively stake to 2,040 ETH as opposed to the current 32 ETH.
While some have claimed that the proposal would not be in the interest of the Ethereum network, it would probably be in the interest of pooled staking solutions such as Lido – which have seen significantly increasing interest both after and in the run up to Ethereum’s transition to Proof of Stake.
(About Ethereum)
Ethereum is a decentralized, open-source blockchain platform that was first introduced in 2015. It is built on the idea of smart contracts, which are self-executing contracts that automatically enforce the rules and terms of an agreement between parties. The platform allows developers to build and deploy decentralized applications (dApps) that can run on the Ethereum network. The native cryptocurrency of the platform is called Ether (ETH) and it is used to pay for transactions, gas fees, and as a store of value. Ethereum is known for its programmable, versatile and secure smart contracts, which have enabled the development of a wide range of innovative dApps, such as decentralized finance (DeFi) platforms, non-fungible tokens (NFTs), and more.
Illustration by TradingView
Apr 172023
ETH/USD: Ethereum Price and Options Trading Surge After 18m ETH Unlocked
- Ethereum’s most recent update is causing a surge in the price of ETH, reaching $2,130 on Friday.
- Options trading activity related to Ethereum also saw a significant increase last week.
- Ethereum’s next major update will likely deal with implementing ‘sharding’ which will improve the network’s scalability.
Ethereum’s Shapella update which took place on Wednesday last week is already having an effect on the markets, with ETH having risen by more than 10% since it took place. More tellingly however, over $1.23bn worth of Ethereum options contracts have been exchanged across crypto exchanges from Thursday to Friday. Since the Shapella update, Ethereum options contracts have come to represent around 60% of total crypto options activity.
The Shapella era
Although substantial quantities of ETH have already withdrawn from staking contracts, there’s still around $36.5bn worth deposited – which accounts for more than 15% of Ethereum’s total token supply. This means that the potential for further ETH price movements as more tokens are withdrawn in the months ahead remains high. One exchange in particular, Kraken, initiated over $1bn worth of ETH withdrawals when the upgrade was implemented.
The next step
The Shapella update didn’t just unlock the ability for users to withdraw staked ETH, it also made various other improvements to the network such as optimizing the amount of gas fees involved in certain kinds of transactions. Although most users won’t notice a major difference in the cost of gas fees.
After the Shapella update, the next major update for Ethereum will likely revolve around the highly anticipated implementation of what’s known as “sharding” – a process which will improve the network’s scalability and transaction speeds. Ethereum's slow relatively slow transaction speeds have long been a complaint of many users of the network, and speeding up its transactional throughput could result in an increase of the network's adoption.
(About Ethereum)
Ethereum is a decentralized, open-source blockchain platform that was first introduced in 2015. It is built on the idea of smart contracts, which are self-executing contracts that automatically enforce the rules and terms of an agreement between parties. The platform allows developers to build and deploy decentralized applications (dApps) that can run on the Ethereum network. The native cryptocurrency of the platform is called Ether (ETH) and it is used to pay for transactions, gas fees, and as a store of value. Ethereum is known for its programmable, versatile and secure smart contracts, which have enabled the development of a wide range of innovative dApps, such as decentralized finance (DeFi) platforms, non-fungible tokens (NFTs), and more.
Shubham Dhage/ Unsplash
Apr 112023
ETH/USD: Ethereum HODLers Prepare for the Effects of Imminent Shanghai Upgrade
- Ethereum’s Shanghai Upgrade is right around the corner, penciled in for tomorrow
- Investors are concerned that the unstaking of ETH, which was previously locked, could prompt a sell off.
- Despite concerns, withdrawal delays and ETH’s diminished price might help to prevent this.
Ethereum's Shanghai Upgrade is fast approaching with an expected implementation set for tomorrow. And users of the network are anticipating what the upgrade’s effect on the network will be. Concerns are beginning to circulate that with excitement of tokens being unlocked could create a cascade of sell action, which would result in the price of ETH falling.
The great unstaking
While there are concerns, experts in the space are suggesting that we are unlikely to see a mass sell off. This is in part due to the fact that unstaking of Ethereum will take time to be processed – with the length of delay varying from 5 days to 4 months depending on the amount being withdrawn.
This might prevent to some extent a large portion of ETH being unstaked and sold at the same time. Additionally, ETH is still trading significantly below its market highs, so the incentive to immediately sell the ETH-based profits of staking is further diminished.
A long time coming
The withdrawal of staked ETH is one of the most highly anticipated events in the crypto industry at the moment. And with more than 18m ETH staked since its Beacon Chain went live, the implications of the change for the network could be substantial.
Some exchanges such as Kraken have also been coming under increasing regulatory scrutiny for their offering of staking services, as the Securities and Exchange Commission (SEC) believes that in some instances they could be considered securities.
web3/ Unsplash
Mar 242023
ETH/USD: Popular Layer 2 Solution Arbitrum Launches Highly Anticipated Airdrop
- Arbitrum has launched its ARB token which was much anticipated by users of the platform.
- Arbitrum has the dominant market share of Ethereum layer 2 solution market at 55%
- The ARB token will be listed by major crypto exchanges including Binance and Coinbase.
With Ethereum’s slow transaction speeds and sometimes hefty gas-fees, the world of “layer 2” solutions to improve the usability of the Ethereum network has been rapidly growing. Several different protocols are competing to be the one which can make Ethereum more usable and make serious profits doing so. And while Arbitrum has always been a contender for the number 1 spot, the arrival of its native token might make its position more secure.
The wait is over
The governance token of Arbitrum DAO, ARB, has now been airdropped to early adopters of the platform. The excitement caused the network’s daily transaction count to reach an all-time high of over 1.3m in the run-up to the airdrop. 1.16bn ARB tokens have been released as part of the airdrop out of 10bn tokens in existence, and the majority of the tokens (~42%) will be reserved for the Arbitrum Foundation for the purpose of network improvement. Some DAOs using Arbitrum are also able to claim tokens from a dedicated pool. Major crypto exchanges like Coinbase and Binance have already announced they will support trading of the token soon.
Currently, Arbitrum has a total value locked of around $2bn, and its most popular project is the decentralized exchange (DEX) DMX. It also hosts both Uniswap and Sushiswap – some of the top DeFi protocols on the Ethereum network.
What does it mean for Arbitrum?
The airdrop could help solidify its dominance in the layer 2 solution space even more firmly. Other Ethereum layer 2 competitors like Optimism have already released tokens, although Arbiturm is still firmly in the lead with a roughly 55% market share. If considered a ‘true' layer 2, Polygon would be in the lead by value locked – however it is usually considered separately as it utilizes a separate blockchain unlike most other layer 2s.
The price of ARB token fell sharply after the airdrop (as is the case with most due to recipients immediately selling their tokens), but its price is definitely one to keep an eye on over the coming months.
Arbitrum
Mar 202023
ETH/USD: Ethereum’s Long-Awaited Shanghai Upgrade in Final Stages
- The final test run before Ethereum users can withdraw staked ETH has been successfully completed.
- A rough date for the upgrade has been set for around April 12, although it could face delays.
- Experts believe the upgrade will result in a huge surge of interest in Ethereum staking.
The withdrawal of staked ETH has been something on the mind of the Ethereum community for several years now, as it will mark the true completion of the network’s transition to proof-of-stake. With billions of dollars worth of tokens locked on the blockchain, the upgrade is likely to cause significant volume in the world’s second largest cryptocurrency. And while no official date has been set yet, the Shanghai (or ‘Shapella’) upgrade could be right around the corner with its final test stage looking promising.
The final preparation
Last week, the ‘Goerli’ testnet of Ethereum underwent a simulation testing the capacity of the network to handle mass-unstaking of ETH. It was the final testnet to undergo such a test after two others, and its success was the most important as it most closely mimics the parameters of Ethereum’s mainnet. After already having been delayed from March, it’s believed that the update will take place on or around April 12, although it could be subject to further delays.
What happens now?
Even without the ability to withdraw staked assets, Etheruem is already the largest proof-of-stake blockchain in the world, with a market cap of $216bn. Experts now think that when the ability to withdraw is added, it will cause a large surge of interest in Ethereum staking as participation in it has already been so widespread without it. As it stands, 15% of Ethereum’s total token supply (or roughly $31bn) is locked in staking pools, and analysts believe that as much as half of Ethereum’s supply could be staked after the ‘Shapella’ upgrade.
motoviurii / Freepik
Mar2023
ETH/USD: $197m Exploit of Euler Finance Shows DeFi Hacks Back in Full Swing
- Euler Finance has had its on-chain value almost wiped out in a $197m flash loan attack.
- It’s the most costly DeFi exploit to have occurred this year so far.
- DeFi exploits are becoming an increasingly large problem for crypto, with funds stolen rising 73% from 2021 to 2022
For those who were hoping 2023 might show more mercy to DeFi protocols after record levels of theft last year, yesterday brought some concerning news. Euler Finance, a DeFi lending protocol based on the Ethereum network, has been exploited to the tune of $197m (mostly in staked Ethereum) – marking the most costly DeFi exploit of the year so far.
What went wrong?
Euler Finance fell victim to something known as a ‘flash loan attack’, where attackers both borrow and return funds in a single transaction to manipulate asset prices. In this attack 6 different flash loans were used, to allow the attacker to make off with $135m of stETH in addition to $62m in the stablecoins DAI and USDC. The exploit has essentially wiped out the platform’s entire TVL, which was reportedly around $237m before it occurred – now only around $9.7m remains in the platform.
What does it mean for DeFi?
With $197m stolen, this makes for the most costly DeFi exploit of 2023 so far. Last year saw more than an eye-watering $3bn stolen in attacks such as this – which marked a 73% increase from the amount stolen in the year prior. The question on everyone’s minds is whether 2023 will again surpass its predecessor. But while the number of tokens stolen might continue to break records, with depressed crypto prices it seems unlikely that the fiat value of stolen assets will surpass that of last year.
Rodion Kutsaiev / Unsplash
Mar 132023
ETH/USD: Ethereum Branded a Security in NY Attorney General’s KuCoin Lawsuit
- Etheruem has been labeled a security during the NY Attorney General’s lawsuit against KuCoin.
- Their reasoning is that Ethereum developers stand to profit from upwards price movements.
- US regulators are torn between considering cryptocurrencies securities or commodities.
The question of whether cryptocurrencies can be considered securities has loomed over the space for some time now. And on Friday, the second largest crypto in the world was dragged back into the limelight. This time however the case isn’t against Ethereum itself, but rather the world’s fourth largest crypto exchange by volume – which is facing allegations of listing unregistered securities.
What happened?
One of the largest crypto exchanges in the world, KuCoin, has been sued by New York Attorney General Letitia James for allegedly offering users securities without being properly registered. The suit also alleges that Ethereum is an unregistered security. The reasoning being that the development of the network is “driven by a small number of developers” who would profit from positive price movements of ETH. The fact that Ethereum held an Initial Coin Offers (ICO) at launch, with promotional materials, was also used as evidence of its classification as a security.
Not a unified front
While the case that some cryptocurrencies are securities has been made, regulators do not agree on what purview they should fall under. The Securities and Exchange Commission (SEC) believes that Ethereum should be considered a security (despite statements made by its officials in 2018 to the contrary), another regulator believes that are in fact commodities. The Commodity Futures Trading Commission (CFTC), has argued that the Gary Gensler-led SEC is overstepping its jurisdiction with its blanket assessment of “everything other than Bitcoin” to be a security.
Matt Cohen / Flickr
Mar 062023
ETH/USD: Ethereum Levels Up Wallets With “EntryPoint” Upgrade
- Ethereum has added “EntryPoint” – an improvement that allows wallets to function as smart contracts.
- The upgrade could change how Ethereum-based DeFi applications function.
- The Shanghai upgrade, which allows staked ETH to be withdrawn, has been delayed until April.
The ability to withdraw staked ETH may have been delayed into April, but Ethereum has just received another upgrade which could have major implications for how the world of ETH-based DeFi functions. It’s not as drastic as the upcoming Shanghai upgrade, but developers will be looking at how to implement the improvement into their services.
What is EntryPoint?
At its core, EntryPoint gives greater smart contract functionality to Ethereum wallets – enabling them to function as smart contracts themselves. Amongst the added functionality is the ability for wallets to facilitate automated payments and recovery methods for lost funds. All of this will be able to be carried out without having to interact with the Ethereum blockchain itself.
It’s not just the Ethereum network that EntryPoint functions with – it also has compatibility for Polygon, Avalanche BNB Chain and others. The upgrade has existed prior to the official implementation, but it has now been audited by security firms. The use of EntryPoint is also completely optional for developers, so some developers might opt to wait until the security of the technology can be more widely tested.
How has ETH been performing?
Like most crypto assets, ETH is still trying to recover from the wider market selloff seen in 2022 – something which Ethereum hasn’t been doing too badly at. Over the past three months, ETH has risen by over 24%. However, more recently over the past month, the second largest cryptocurrency has remained largely flat with a 4% drop. It’s a pattern largely followed by BTC, which has seen only a 4.3% drop over the past month. Fans of Ethereum will be hoping the EntryPoint implementation will give its DeFi ecosystem the boost needed to take it out of the slump.
Zoltan Tasi / Unsplash
Feb 282023
ETH/USD: How Will the Shanghai Upgrade Change Ethereum?
- Ethereum’s upcoming Shanghai upgrade will allow for the unstaking of more than $26bn worth of ETH.
- The upgrade is expected sometime in March this year, but could be delayed.
- Purists are concerned that the upgrade might make the blockchain more centrally controlled.
Since its transition to proof-of-stake with The Merge in September, the most anticipated upcoming event for the second largest cryptocurrency in the world has been the Shanghai upgrade. The feature that has users the most excited is the ability to withdraw staked Ethereum, which has been inaccessible to ETH stakers for years. And with more than $26bn worth of ETH on the line, it’s one of the most significant upcoming events for the entire crypto space. Let’s take a look.
How will Shanghai affect Ethereum?
For over a year, protocols like Lido Finance and StakeWise have provided liquid staking solutions to circumvent the requirement of 32 ETH to stake natively on the Ethereum blockchain. When withdrawing is enabled, it will likely pose disruption to protocols such as these. However, it’s likely that they will continue to provide a useful service to those seeking to earn passive income through their holdings. What’s also likely is that Ethereum becomes more centralized after the upgrade. A large number of stakers will likely cash out their profits from decentralized staking pools like Lido. If new stakers opt to use solutions offered by centralized exchanges such as Coinbase, greater validation power would be held by these companies.
Despite having rallied by nearly 36% since the start of the year, ETH price has remained relatively flat over the past month – along with BTC. Some think that a mass unstaking which will ensue with the upgrade could result in a price rally. The other possibility is that stakers selling their accrued ETH rewards could put downward pressure on the cryptocurrency. Whatever the outcome, increased ETH volumes can be expected when the upgrade occurs.
When is the upgrade expected?
As for when the upgrade will take place, there hasn’t been a solid date penciled in yet. It has been speculated that the Shanghai upgrade will take place sometime in March this year. Although that date could be pushed back as bugs are addressed in the upgrade scheduled before it – Sepolia. Regardless of when it takes place, the potential withdrawal of billions of dollars worth of assets sure to send ripple effects throughout the crypto space.
DrawKit Illustrations / Unsplash
Feb 162023
Layer 2s like Arbitrum and Optimism are leveling up Ethereum
- Arbitrum is way out in front by TVL in the race for Ethereum’s layer 2.
- The scaling solution is now the 4th largest blockchain in the world by TVL.
- Its GMX decentralized exchange has been rapidly rising in popularity.
Etheruem may have given birth to the DeFi revolution, but it certainly wasn’t its speed that got it there. Currently, the network handles around 10-20 TPS (transactions per second), which by today’s standards – is far from stellar. By comparison, so-called “ETH-killers” such as Solana and Avalanche frequently handle over 4,000 TPS.
In recent months however, Ethereum’s layer 2 solutions – which offer faster and cheaper transactions in comparison to the mainnet – are beginning to flourish once again. And Arbitrum looks like it's leading the charge.
There’s layers to it
With $1.52bn locked in its ecosystem, Arbitrum is the fourth largest blockchain by TVL – an impressive feat. But what’s more impressive is the fact that its TVL is now almost double that of its main competitor Optimism at $835m. Polygon and Loopring have also enjoyed the rising popularity of layer 2 solutions, now sitting at a TVLs of $1.17bn and $1.33m.
However Arbitrum has been on a roll recently. Since the start of the year, its TVL has surged by more than 50% – showing better performance than its competitors. In part, Arbitrum has its decentralized exchange GMX to thank for its explosive growth recently, as it constitutes a whopping 30% of its entire TVL.
GMX has been growing so rapidly that last weekend it actually topped Ethereum’s mainnet by fees charged – generating $5m in fees over a 24 hour period compared to the $4.7m generated by Ethereum. Without a naive token, there’s not yet any accessible means of investing directly in Arbitrum – unlike almost all other Ethereum layer 2 scaling solutions.
What’s next for layer 2?
For as long as Ethereum’s gas fees and transaction times remain as dated as they are, the growth of layer 2 looks likely to continue. The network’s upcoming Shanghai upgrade (which is expected sometime in March) will increase transaction speeds and reduce the fees involved, but it’s unlikely to be substantial enough an improvement to detract from the growth of its layer 2 solutions.
So called “ETH-heads” have their eyes on a new form of scaling technology called zkEVM or “zero-knowledge Ethereum Virtual Machines”. Essentially, there’s likely to be a new wave of competitors to the protocols mentioned above which if effective, may change up the whole space once again. Optimism too still has space to gain ground. For now however, Arbitrum looks pretty firmly positioned as the leader of the pack.
Shubham's Web3 / Unsplash
Jan 252023
One step closer
Ethereum stakers are nearly ready to access the ETH they’ve stashed away since before The Merge.- The first part of Ethereum’s long awaited Shanghai upgrade has begun, with a test being completed on the network’s preparedness to unstake $26bn worth of ETH. The upgrade is expected to take place sometime in March this year.
- Allowing users to withdraw their staked ETH is a priority for core Ethereum developers – taking precedence over other highly anticipated upgrades such as sharding, which could reduce transaction fees.
- Despite the excitement, some core Ethereum devs think the update is being rushed. Core dev, Micah Zoltu, said that the decision to not upgrade its encoding method could have long term implications for the network as a whole. We’ll need to wait and see if that was a warning worth heeding.
Nenad Novaković / Unsplash
Jan 182023
Just keep building
Ethereum’s price may have been slammed last year, but it was a great year for the network in other respects.- The number of smart contracts deployed on the Ethereum network skyrocketed by 293% over 2022, according to a new report released by Alchemy. It’s a positive sign that shows that faith in crypto and DeFi has managed to be sustained despite the market downturn.
- Surprisingly, the peak of Ethereum smart contract development roughly coincided with the collapse of FTX in November last year, when funds began pouring out of the industry. The report also surveyed almost 1k developers – 94% of which said they are determined to continue developing in the space regardless of market sentiment.
- The report comes as Ethereum crosses the 500k validators mark – meaning 500k different sources are staking the required 32 ETH (~$50k) to run a validator node. Its Shanghai update, which will unlock staked ETH, is also right around the corner and is expected sometime in March.
Shubham's Web3 / Unsplash
Jan 102023
Shanghai on the horizon
The next big update for Ethereum is on the way, and token stakers couldn’t be happier about it.- Ethereum is gearing up for its first major update since it underwent the Merge in September last year. No date for the upgrade has been confirmed, but it’s considered likely to take place sometime in March this year.
- One of the key features of the upgrade is rumored to be the unlocking of staked ETH, which stakers have been looking forward to for some time. The excitement was enough to lift the token of the largest ETH staking pool, Lido Finance, by 32% on Sunday, as stakers prepared to reap their returns.
- Lido Finance has been on a roll recently, after overtaking competitor MakerDAO by TVL last week. It’s popularity has been on the up, due to its low cost compared to the hefty requirement of 32 ETH for staking on Ethereum natively. Whether the Shanghai upgrade will cause an ETH price movement however, remains to be seen.
Shubham's Web3 / Unsplash
Nov 032022
Rugpulls running riot
How sure are you about that new token you just bought? If this report is to be believed – not sure enough.- A new report into tokens traded on Uniswap shows that 97% of tokens listed are rugpulls. In the report published by the Multidisciplinary Digital Publishing Institute, analysis of transaction data of 27,000 tokens indicated that only 631 could be defined as “non-malicious”.
- Rugpulls were a substantial portion of the $2bn stolen in crypto exploits in 2020, and continue to be a significant problem for the industry. Since then however, NFT phishing and bridge chain hacks have come to represent a larger portion of yearly crypto theft.
- Researchers who created the report attributed the rise of rugpulls to the anonymity of launching a token. It’s all too easy to register a token with decentralized exchanges like Uniswap and pretend to be a legitimate business. Remember to do your own research folks.
Uni swap / Flickr
Nov 012022
The changing Ethereum ecosystem
Ethereum’s switch to proof of stake has shaken up the staking game, but its rewards are looking too popular for their own good.- Ethereum staking is proving popular with DeFi yield farmers, with 14m ($22.3bn) ETH currently deposited for staking. Investors are in it for the long game too, as withdrawals of staking deposits won’t be possible until the chain’s ‘Shanghai’ upgrade in 2023.
- However some investors are getting fed up with the dwindling returns. The more funds deposited in the staking pool, the lower the yield for stakers. Currently yields for post-Merge staking is in the range of 4%-5% which is much lower than the 9%-12% that was initially expected.
- Despite the yield concerns, October’s been a pretty kind month in terms of price action. BTC gained more than 5% for the start of the month and investors are looking even more bullish on ETH, which rallied rallied by more than 16% over the course of October.
Shubham Dhage / Unsplash
Oct 242022
0 to $16m in one week
Vitalik Buterin shines the spotlight on memecoins once again with the latest trend being one based on a pronoun. Nope, we’re not making that up. Introducing… “THE” protocol.- Vitalik Buterin last week prompted the creation of a new kind of memecoin after tweeting that someone should make a project called ‘THE protocol’ so every time anyone notable said the word “the”, it could be seen as a promotion. Naturally, someone in the cryptoverse took this literally and promptly created a new token by just that name.
- Hanging on his every word, crypto Twitter then flocked to exchanges to ensure the token blew up. In just a few days, THE surged by around 1000%, currently sitting at a price of around $0.158. In fact, the hype was so real that the token actually caused a noticeable increase in Uniswap activity as daily transactions almost reached 200k – their highest level since July 2021.
- The craze didn’t stop there either, a bunch of tokens have now begun to pop up based on other English words like ‘this’, ‘they’ and ‘that’. It’s certainly not the first time crypto Twitter has made it their mission to send a memecoin to the moon, and I think we all know from experience that they know what they’re doing, so stay tuned.
TechCrunch / Flickr
Oct 132022
A major ecosystem development
Ethereum’s development roadmap just got a lot more interesting with an acquisition that could reshape its future.- The developers of layer 2 scaling solution Arbiturm have acquired Prismatic labs, a core development team for the Ethereum network. Offchain Labs’ Arbitrum is already the most popular scaling solution for Ethereum, with the total value locked in the platform sitting at around $1bn and almost 50% of all layer 2 activity being handled by them.
- It might look like a small acquisition, but it’s a pretty big deal for Ethereum’s future. In the past, Vitalik’s said that layer 2s are central to the chain’s development and it’s looking like Arbitrum now has the leverage to make itself even more dominant in the space and make Ethereum’s roll-up roadmap a reality.
- Ethereum has a few tricks of its own up its sleeve to increase network capacity. ‘Danksharding’ is one of the most anticipated upgrades after the Merge, which is expected to dramatically boost its speed. So far however, it's been up to layer 2s like Arbitrum and Optimism to overcome its clunky design.
Shubham Dhage / Unsplash
Oct 112022
ETH’s deflationary run
Ethereum prices haven’t exactly been topping the charts since the Merge despite the continuing decline of ETH supply.- Ethereum supply has dropped by over 4k since Saturday, but counterintuitively its price hasn’t reflected the developments, and has instead dropped nearly 4% in the last few days and is now down over 21% since its historic Merge was implemented on September 15.
- It marks the first time ETH supply has turned deflationary, which basically means more ETH being destroyed than created, since the blockchain moved to PoS last month. The reduced supply is being caused by a proposal implemented in August which causes some tokens to be burned in the process of paying gas fees.
- Speaking of which, gas fees are up 218% since Friday to an average of 35 gwei – one of the culprits of this spike is a new project called XEN, which allows users to mint tokens for free as long as gas fees are paid and has burnt $1.85m in Ethereum in the past 24 hours, prompting accusations of this being a pump and dump.
GuerrillaBuzz Crypto / Unsplash
Sep 292022
Mev bot gets made
If robots had feelings, we reckon this Ethereum arbitrage bot would be asking for a hug right now.- An Ethereum arbitrage bot has had the worst day of its career after earning 800 ETH ($1m) before having it all swiftly stolen by a DeFi hacker. The ‘Maximum Extractable Value’ bot detected an opportunity when a trader attempted to sell $1.8m worth of assets but only received $500 worth in return.
- The fun wasn’t to last however, as less than an hour later an opportunistic hacker exploited a vulnerability in the bot’s code, causing it to send its total balance of 1,101 ETH ($1.45m) to the attacker’s wallet. Do robots rust if they cry?
- Hacks in the DeFi industry don’t show any signs of letting up, as just two weeks ago the code for an Ethereum wallet naming system was exploited to the tune of $3.3m worth of assets, and the funds stolen in DeFi hacks this year has already exceeded $2bn.
