- A whole ecosystem of Ethereum killers has sprung up in recent years, but with ETH2 almost here, is this their inevitable end?
- And it’s not just the killers who are at stake – what happens to Polygon which has made a name for itself as a scaling solution for Ethereum once the latter can scale?
It has been a long time coming, but Ethereum 2.0 is quickly taking shape. Major developments have taken place in recent months and there’s an acceptance now that a new dawn in Ethereum is upon us, even for those who were initially opposed.
As CNF reported recently, Ethereum developers have confirmed that the Altair upgrade will occur in late October, most likely on the 27th. The upgrade will bring light-client support to the core consensus, fix some issues with validator incentives and more.
The Ethereum community is showing unwavering faith in the upgrade. This is best seen in the Ethereum 2.0 deposit contract, which allows users to stake their ETH, which now has over 7.8 million Ether, worth $23.2 billion. About 900,000 ETH was staked in December when the Beacon chain launched, and the latest numbers show just how much growth has taken place in the past 10 months.
ETH 2.0 is undoubtedly coming our way, setting Ethereum up to be the world computer that Vitalik Buterin and co. envisioned from the start. The benefits of the upgrade are many, from ETH becoming deflationary to much lower fees and vast scaling ability.
But there’s another side to it, one that may spell doom for other projects. So, what happens to Ethereum scaling solution Polygon and Ethereum killers like Cardano, Solana and Polkadot?
What does Ethereum 2.0 mean for Polygon?
Of the various blockchain projects that will be affected by Ethereum 2.0, Polygon’s case is unique. While most of the others have offered an alternative to Ethereum (gaining the term Ethereum killers), Polygon sits atop the Ethereum blockchain as a scaling solution.
Polygon was developed by Indian developers as a second-layer solution for Ethereum, launching in 2017 as the Matic Network. It relies on the proof-of-stake consensus mechanism, which Ethereum is turning to in its upgrade.
As a second-layer solution, Polygon processes transactions off the main Ethereum network, reducing the workload on the main chain. This allows it to process transactions much faster and for a much lower fee than Ethereum.
Aside from its Matic POS chain, it also has plasma rollups as a scaling mechanism. Rollups work by sitting atop the Ethereum blockchain and processing a series of transactions before submitting them back to the Ethereum main chain as a single transaction.
Ethereum 2.0 will have a huge effect on Polygon. However, there will still be a place in the new era for the project.
For one, ETH 2.0 will rely mainly on sharding as a scaling method. This complex mechanism involves splitting the Ethereum infrastructure into smaller pieces to allow easier processing of transactions.Each shard can handle a special task, such as validating one type of transaction while another shard does the same with another type.
However, even with sharding, Ethereum is unlikely to hit the numbers it must if its to become the world computer.
Sandeep Nailwal, the COO of Polygon, is adamant that even ETH 2.0 won’t push out Polygon. In an interview, he estimated that Ethereum’s scalability will shoot up 64X once it implements sharding. This would be at most 3,000 transactions. This is nowhere near enough to discount Layer-2 scaling solutions.
Visa, for instance, goes up to 50,000 transactions a second, and it only processes Visa payments. Ethereum, on the other hand, will handle finance, gaming, supply chain, NFTs, DeFi and more.
“So the point I’m trying to make here is, that even when Ethereum’s scalability grows by a factor of a hundred, the demand is already thousands of X than that. And you would need these secondary level scalability solutions where people would be running their business logic, their applications, and they will be settling back to Ethereum,” he told Forkast News.
Jaynti Kanani, the Polygon CEO and co-founder holds the same position. Speaking on the Unchained Podcast, he claimed that Ethereum will not be able to meet the demand, even after sharding.
Let’s think of it as the supply of scalability. At the moment it goes up on Ethereum, the demand is already there. It will grow immediately and you will end up with the same bottlenecks.
Even if Ethereum 2.0 will scale 64X, “the demand is 1,000 X than where we are. You will need L2 scalability,” Jaynti told Laura Shin, the host.
On its part, Polygon is out to cement its position in the post ETH 2.0 era by implementing a series of upgrades that will make it even more competitive. These will include integrating Optimistic and Zero Knowledge (zk) rollups, having Polkadot-like substrates, data availability chains and “standalone chains where teams can come and create their parachains that connect back to Ethereum.”
(Watch out for part 2 where we will look at what Ethereum 2.0 means for Solana.)
Ethereum Drops Under $4,000 First Time Since October
Ethereum falls sharply below $4,000 for first time since mid-October but then recovers above it
Ethereum has briefly fallen below one of the strongest supports, according to cryptocurrency market analysts. As of now, the second-largest cryptocurrency has recovered back above $4,000, but the market might not be ready to V-shape recovery yet.
Liquidation rates on the cryptocurrency market for Ethereum have reached $60 million in the last few hours. According to data from various centralized exchanges, a significant number of leveraged orders for Ethereum have been gathered at or close to the $4,000 support.
Previously, Ethereum was testing the area close to the $4,000 mark numerous times but failed to go through it and remain under it. As for now, Ethereum is trading at $4,053 with a total 10% daily loss.
U.Today previously reported that Bloomberg analysts see Ethereum trade in the rangebound for a long period of time after the ATH retrace. The lower border of the range was $4,000 and the upper $5,000.
Other cryptocurrencies like Bitcoin, Cardano or Doge are losing 7% of their value, which is slightly less compared to Ethereum’s 10% loss. According to data from TradingView, the cryptocurrency market mostly follows the stock market’s path by rapidly losing value due to risks caused by the new pandemic measures.
According to exchange flows, traders are not yet rushing to sell all their assets, while strong inflows were present previously when Bitcoin was trading close to $60,000. Currently, the main selling pressure comes from retail traders and institutions, and crypto miners’ wallet activity still remains at year lows.
Tech Savvy Crooks Are Stealing Millions in Bitcoin, Ethereum and Shiba Inu Through YouTube Live: Report
Scammers are using compromised YouTube accounts to steal millions of dollars in crypto from unsuspecting viewers, according to a new report.
The cybersecurity firm Tenable says digital thieves are employing a savvy blend of fake celebrity endorsements and trending cryptocurrencies to reap illicit gains through fake giveaway events.
Analyst Satnam Narang says the scammers are utilizing YouTube Live to create supposed live streams that in actuality broadcast pre-recorded, ripped-off and manipulated content.
“To promote the fake cryptocurrency giveaways on YouTube, scammers follow a very basic templated approach… Each video contains a section that features an unrelated interview involving notable [crypto] figures…
The videos contain a section that features the URL for the so-called event or giveaway. This section is not clickable, which means the user has to manually type in the URL to reach it.”
Once the viewer visits the scammers’ website, they are asked to send funds to a crypto address and told they will later receive double their money or more in return.
The crooks are stealing popular crypto assets including Bitcoin (BTC), Ethereum (ETH) and popular memecoin Shiba Inu (SHIB).
Narang says that in a recent month-long survey of YouTube Live scams, he counted at least $8.9 million in fraudulent activity.
The report goes on to explain how familiar faces are ideal to use as bait when luring in victims.
“Scammers recognize that users place a lot of trust in influential voices. Combined with the plethora of existing interview footage featuring many of these notable figures, scammers have developed a formula that adds legitimacy to their efforts and has continued to work for years.”
The report notes that an important aspect of running a successful scam is to take over an existing YouTube account that already has a large subscriber base. This leverage provides an air of legitimacy and increases the likelihood that a significant number of people will encounter the video.
The presentations are designed to be slick and professional, such as this fake Elon Musk/SHIB promotion.
Tenable notes that after Musk’s appearance on popular late-night comedy show Saturday Night Live back in May, hackers made off with over $10 million via fake crypto giveaways.
In response to the proliferation of fraud on its platforms, Google’s Threat Analysis Group recently posted a wide-ranging report called “Phishing campaign targets YouTube creators with cookie theft malware.”
The section about crypto fraud states,
“A large number of hijacked channels were rebranded for cryptocurrency scam live-streaming. On account-trading markets, hijacked channels ranged from $3 USD to $4,000 USD depending on the number of subscribers.”
Ethereum Price Analysis: ETH swiftly drops 14 percent, retracement to follow?
- Ethereum price analysis is bullish today.
- ETH/USD spiked below $3,950 previous swing low.
- Buying pressure rejecting further upside.
Ethereum price analysis is bullish today as we expect recovery after a strong selloff earlier today. Likely ETH/USD has found support around the previous low of $3,950, leading back to the upside over the next 24 hours.
The market overall has seen strong selling pressure over the last 24 hours. Bitcoin has lost 7.33 percent, while Ethereum 9.11 percent. The rest of the top altcoins follow with similar results.
Ethereum price movement in the last 24 hours: Ethereum spikes below $3,950 after peaking at $4,550
ETH/USD traded in a range of $3,933.51 – $4,550.84, indicating massive volatility over the last 24 hours. Trading volume has increased by 30.71 percent, totaling $25.79 billion. Meanwhile, the total market cap trades around $480 billion, resulting in market dominance of 19.63 percent.
ETH/USD 4-hour chart: ETH starts to recover, returns above $4,000
On the 4-hour chart, we see recovery in progress for the Ethereum price as further downside got rejected over the last hours.
Ethereum has seen a slow recovery over the past weeks after a strong decline from the $4,867 previous all-time high set on the 10th of November. Support was eventually found at $3,950, with the following reaction taking ETH/USD to $4,400.
A higher low, indicating a potential reversal, was set on Monday. From there, Ethereum slowly moved higher until a quick break above previous highs was seen yesterday.
Ethereum price peaked at $4,555, quickly reversing lower overnight. Further downside followed, pushing ETH/USD towards previous lows until the $3,950 major low was tested. Bullish momentum appeared again over the past hours, returning ETH higher as the market starts to recover the loss.
Ethereum Price Analysis: Conclusion
Ethereum price analysis is bullish as we expect a retracement to follow over the next 24 hours as bearish momentum is exhausted. Therefore, ETH/USD is headed higher to recover some of the losses seen earlier today.
While waiting for Ethereum to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.