The new update changes transaction logic, which opens up new possibilities for Ethereum developers
The new ERC-4337 update proposal has been announced by Vitalik Buterin. The Ethereum developer has discussed the new features that will be introduced with the update and the possibilities that the new ERC brings to the network.
Account Abstraction introduction
The most important update for the Ethereum network will be Account Abstraction, which has been awaited by both the developer and user communities. The update adds new verification logic for individual users’ wallets. It creates new functions for wallet developers, which will now be able to implement futures like multiple signatures, social recovery and new signature algorithms.
The aforementioned functions are already present in the modern wallet, but in order to use them, developers have to use additional transactions and spend excessive amounts of gas. Users have to hold some ETH on an external account or use relay systems that usually work in a centralized manner.
Previously presented EIP-2938 was already designed to fix the issue, but it also required Ethereum protocol changes that do not mesh well with the current developer focus (the scalability issue). In the newly presented proposal, the same goals will be achieved without consensus-layer protocol changes.
How does the new proposal work?
The key function that the update will bring is the new transaction logic that allows the implementation of new uses without changing Ethereum’s protocol. With EIP-4339, developers decided to create a new layer that will contain the user’s commands and create a queue that will then be bundled and sent out to the block as a transaction.
Properties of the new transaction design
In his article, Buterin described numerous properties that the new transaction logic brings to the chain. Actors on the chain will now be decentralized since everything is being done through a P2P mempool, simplified user-side wallet setup, full EIP-1559 support and DoS attack protection.
An early version of the update is expected to be released soon. Right after that, the proposal will go through safety audits and will be released on testnet.
ETH, BUSD, and MANA Market Activity Dominates Crypto Space
- Top 10 crypto assets with a solid performance in the market.
- Altcoins surge market positions.
The crypto world is now back on its feet and shows no sign of slowing down. In fact, many altcoins are currently surging their position right now in the market. The performance of these crypto-assets contributes a lot to the recent uptrend position of the space.
These made LunarCrush Social Intelligence for Crypto, an organization that gathers crypto information, react in a tweet post:
Real-time Top 10 Coins by AltRank™ with leading social + market activity.$eth #ethereum$dexe #dexe$luna #terramoney $any #anyswap$usdt #tether$mana #decentraland$sfund #seedifyfund$req #requestnetwork$busd #binanceusd$mx #mxtokenhttps://t.co/wjRPiDJS9g pic.twitter.com/XQLOKLLW46— LunarCrush 🪐 Social Intelligence for Crypto (@LunarCRUSH) December 4, 2021
In the tweet post, LunarCrush Social Intelligence for Crypto provides the top 10 crypto assets that are doing a solid performance in the market. This solid performance includes the social and market activity of the virtual assets. The cryptos that are listed in the top ten list include Ethereum, Decentraland, and Binance USD, to name a few.
In terms of the latest trend in the crypto industry, the metaverse remains to be one of the most talked-about topics. Decentraland is one of the crypto assets that integrated its blockchain with metaverse technology. Through this, the activity in the Decentraland network keeps increasing along with the mass adoption of its tokens.
On the other hand, the king of crypto assets, Bitcoin, remains the favorite crypto of investors worldwide. As a result, Bitcoin keeps its position as the number one crypto in the market, with a huge market cap of almost $1 trillion.
Ethereum out performs Bitcoin, ETH regains the majority its flash-crash losses
- Ethereum price, like the broader cryptocurrency market, suffered a massive flash-crash during the early midnight trading on Saturday.
- 17% losses at one point were measured.
- Throughout the remainder of Saturday, buying pressure wiped out nearly all of the overnight losses.
Ethereum price performance on Saturday has been nothing short of spectacular. Considering that most of the altcoin market is down fifteen to twenty percent, Ethereum’s daily close of down only 4% is a testament to its strength.
Ethereum price regains nearly all of its flash-crash loss, handily outperforming the broader market
Ethereum price experienced one of the fastest and deepest flash-crashes since May. The timing of the collapse couldn’t have been more perfect: midnight Eastern Standard Time (New York). Bears could push Etheruem to the $3,503 price level before a bullish reversal occurred.
The two primary support levels holding Ethereum price up are Senkou Span B at $3,700 and the third-highest volume node in the 2021 Volume Profile at $3,410. While highly bullish in the short-term, indecision remains and downside risks.
Despite the massive recovery, Ethereum price remains inside the daily Cloud – an area rife with indecision, volatility, and whipsaws. The Cloud is the place where trading accounts go to die. Etheruem needs a daily close at or above the $4,650 price level to convert to a full-blown bull market.
Ethereum price is tilted more bearish here, especially with the Chikou Span below the candlesticks and in open space. Adding to the bearish outlook is the bear flag breakout on the Relative Strength Index. However, the final oversold level at 40 in the Relative Strength Index might yield some support.
ETH/USD Daily Ichimoku Chart
The threshold that bears need to achieve to convert Ethereum price into a bear market is a much more manageable price range than converting to a bull market. For example, whereas Ethereum needs a 15% move above $4,000 to convert into a bull market, short-sellers only need a 7% move below $4,000 to convert Ethereum into a bear market.
Any daily close at or below $3,700 would position Ethereum below the Cloud and into bear market territory.
Here’s What’s Next for Ethereum Rivals Solana and Avalanche, According to Analyst Nicholas Merten
Prominent crypto analyst Nicholas Merten is taking a look at two layer-1 digital assets stacked up against the Ethereum (ETH) trading pair.
In a new strategy session, the host of DataDash tells his 486,000 YouTube subscribers where he thinks smart contract platforms Avalanche (AVAX) and Solana (SOL) are headed.
According to Merten, it is better to compare both coins to ETH rather than the US dollar or Bitcoin (BTC) as Ethereum’s greater success in recent years makes it a better barometer than Bitcoin.
“If you’re really looking to see if your play is outpacing others in the market, you want to take a look against Ethereum. It is the second-largest cryptocurrency in this space and it has been outpacing Bitcoin around 380% to 400% in this cycle alone since 2019.
So we want to be able to find plays that are outpacing Ethereum because Ethereum is a really solid bet. It’s a really good medium-risk, medium-reward play.”
Looking at Avalanche, Merten says that a local top might be in for the AVAX against ETH after the altcoin’s massive rally in the last few months.
“Avalanche has done phenomenally well against Ethereum. If you take a look back here since August, it’s up 422% against Ethereum. Great rally, even after the [recent] pullback here…
When I look at this chart I definitely like seeing an asset that performs well against Ethereum, but each time it’s come up to this range [0.034 ETH or $139.21] historically, it’s been dragged down…
I think that again we might see some kind of repetition, or at least a revisit down to the previous support range [0.014 ETH or $57.32], which means that’s it probably going to go down a little over 35% to 40% against Ethereum. A pretty decent decline.
At time of writing, AVAX is down 1% on the day to $107.20.
As for Solana’s price action against Ethereum, Merten notes that the pair is flashing a bearish pattern after printing massive rallies in the last 18 months.
“But to be completely frank as a trader, Solana’s had many rallies in the past. It’s had one back here [from July to August of 2020], 336% rally in price. Then back here [December of 2020], if you want to take from the lows, in this case, 1,000% move, massive multiples in price.
We take a look here as well, from the recent rally here [August 2021] into September, very similar to history, a little over 350% to 400%. Not a bad rally.
But to be completely frank, we’ve been stagnant since September generally. The trend is starting to fade here. We don’t have that same momentum, and it’s seeing if it can hold out against Ethereum.
If you break below this range here [0.046 ETH or $188], I think it’s very favorable that Ethereum is going to start to outpace Solana as well as other major layer-1 plays.”
Solana is currently down nearly 10% and trading at $203.79.