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Ethereum: Two months after EIP-1559, what’s yet to come

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The first week of August 2021 featured the monumental EIP-1559 upgrade for Ethereum, which was highly anticipated by the collective Ether community. While the initial change in the mechanism had been integrated, further developments were set to take place over the coming months. 

More recently, it was revealed that the Consensys teams had accomplished the transition of a multi-client devnet from proof-of-work to proof-of-stake. This meant that Eth1 execution clients and Eth2 consensus clients had successfully merged to create a network capable of processing transactions. 

The aforementioned news was widely applauded across the market and more so because it came soon after the announcement of Altair’s coming upgrade on October 27.

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The Altair upgrade is said to be a crucial step in the transition to proof-of-stake, giving developers a ‘low stakes warm-up’ and adding functionality on the Beacon Chain. Thus, as the transition to proof-of-stake seems closer, it’ll be interesting to see what the upgrade will change and what will stay the same.

The A-Z of Altair upgrade 

The transition to PoS allows validators to propose and validate blocks without using the energy currently required to mine these blocks, thus making the process more energy-efficient.

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Additionally, it also enables transition away from economies of scale, even though it will almost always arise, PoS allows users with smaller initial investments to become validators on the network. In theory, this can add increased security as validators become diverse, thus countering centralization.  

Further, the emission rate is expected to fall below the 2 ether block reward currently issued under proof-of-work. However, developers claim that with the merge transaction cost and speed won’t change. However, the upgrade will lay the groundwork for sharding, which “spreads the network’s load across 64 new chains” and is a key part of Ethereum’s roadmap to scalability. 

What are the loopholes?

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Notably, however, ETH transactions are comparatively tricky when it comes to fees, in fact,  recently an Ethereum user paid $430,000 in transaction fees for a failed payment.

This triggered a social media backlash as users called out the network’s inability to handle multiple addresses at a time to be “a huge problem with the platform.” However, there are hopes that such issues could be better dealt with as upgrades take place. 

Additionally, New Value Staked presenting the amount of ETH transferred to the ETH2 deposit contract also saw lower values even as the network saw growth. 

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Source: Glassnode

What about ETH’s price? 

For one month in spite of ETH’s network growth, its price has seen considerable resistance at $3650. However, at the time of writing, amid high price anticipation from ETH, the coin saw considerable gains. This was after American billionaire, Mark Cuban advised beginners in the crypto world to select Ethereum as an investment choice, 

ETH finally seemed to have gained momentum in spite of the pros and cons of EIP-1559, as the token saw close to 10% daily gains. Seemed like the hype around the Altair Beacon Chain upgrade on October 27 may have fueled the alt’s price. Nonetheless, with its network heating up and prices on a rise seems like interesting things were coming up for the top altcoin.

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Ethereum

Ethereum Challenger Terra Becomes Third-Largest Blockchain by Total Value Locked, Surpassing Solana and Avalanche

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Decentralized finance (DeFi) platform Terra (LUNA) has surpassed its rival blockchains to become the third-largest crypto by total value locked (TVL).

Crypto market intelligence firm Delphi Digital says that the Ethereum competitor has now overtaken Solana (SOL) and Avalanche (AVAX) in terms of TVL primarily due to value growth in Bonded Luna (bLuna), which is the token used by liquid staking protocol Lido as collateral to borrow stablecoin TerraUSD (UST) within the Anchor protocol.

“TVL on Terra network overtook Avalanche and Solana, making it [the] third-largest blockchain by TVL after Ethereum (ETH) and Binance Smart Chain (BSC).

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It’s important to note that TVL numbers are highly reflective alongside native token prices as they are commonly used as collateral in DeFi and as base pairs for DEXes. In Terra’s case, DEX base pairs usually utilize Tether instead of LUNA, therefore this growth in TVL is primarily contributed by value growth in Lido bLuna.”

The TVL of a DeFi platform is the total value held within its smart contracts. It is calculated by multiplying the amount of funds locked into the network as collateral by the current price of the assets.

Delphi Digital points to how LUNA’s rise has helped Terra’s stablecoin UST increase its overall supply by 4 billion tokens due to a proposal to mint UST on the Terra network.

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“The increase in UST Supply from under $3 billion to $7 billion across mid-November was due to this proposal to mint UST with LUNA in the community pool to grow the Terra ecosystem through UST usage.

UST did another ~$1 billion of growth in circulating supply after 19th November.”

LUNA is exchanging hands at $70.85 as of writing, an 46% increase from its 30-day low of $38.06.

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Fourth-Largest Ethereum Whale Pounces on Large-Cap Altcoin, Accumulating $580,000,000 in Crypto

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One mega-whale just loaded up on an Ethereum (ETH) token that powers a popular crypto marketplace.

The blockchain-transaction tracker WhaleStats reveals that the unnamed wallet received 14,000,000 FTT, the native token of the FTX exchange. The transaction was worth $581,444,018 at time of sending.

The whale now holds over $1.2 billion worth of FTT with a total value exceeding $3.8 billion and is now ranked fourth on the WhaleStats’ list of the top 1000 Ethereum wallets, excluding the ETH cryptocurrency itself.

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Source: WhaleStats

Popular crypto analyst Smart Contracter is also showing interest in FTT, noting that the Fibonacci ABC spacing between sharp highs and lows on the coin’s historical chart offers encouraging signs for future price action.

The trader says in a tweet to his 196,000 followers,

“Been a long while since I played FTT but I actually think a major bottom is in and we go to [all-time highs] from here.

Perfect ABC on super-high timeframes where ABC came below the 0.618 and bull/bear periods are almost 1:1 extension.”

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Source: Smart Contracter/Twitter

In late October news broke that FTX had purchased advertising airtime during the February 2022 Super Bowl as part of a wider push to bring crypto awareness to the mainstream.

Last week FTX also announced the launch of a marketplace for Ethereum-based non-fungible tokens (NFTs).

At time of writing, the FTT token is mostly flat on the day and trading at $42.73.

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Top Trader Says Ethereum Looks Exceptionally Bullish, Unveils Targets for Bitcoin and Explosive Altcoin Terra

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A popular crypto analyst believes Ethereum (ETH), Bitcoin (BTC) and one altcoin are about to blast off and leave the recent market-wide slump in the dust.

The pseudonymous crypto strategist and trader Kaleo tells his 454,000 Twitter followers that ETH’s time to shine has arrived as the “king” of the layer-1 blockchain protocols.

The analyst says,

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“ETH is so bullish after the most recent flush it’s not even funny.

We’ve seen a major rotation play among the alt [Layer-1s] the past few months.

It only makes sense that the king of the L1s finally has a chance to suck liquidity from the rest of the market and have a run of its own.”

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Ethereum is about even on the day, trading for $4,346 at time of writing.

Kaleo next looks at Bitcoin and says he still believes the top crypto will reach at least $100,000 during the current cycle.

“I’ve said it before and I’ll say it again – I still expect to see Bitcoin have a parabolic move to top out at $100K+ this cycle.

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I’ll gladly start scaling out around $150K. I expect it to go higher, but I’m not concerned with nailing the top. Until then, just keep stacking.”

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Source: Kaleo/Twitter

BTC currently sits at $50,900 after having battled back from a flash-crash low around the $43,500 level on December 3rd.

Lastly, the crypto analyst lays out his price prediction for the Terra (LUNA) protocol, whose native token LUNA underpins a suite of decentralized stablecoins.

Kaleo tells his followers that Terra reaching the $100 threshold is inevitable.

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“LUNA going to $100 from here is only a matter of time.”

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Source: Kaleo/Twitter

LUNA has seen some wild price action in recent days, with the altcoin tumbling from $69.66 to $53.64 late last week before surging to $77.37 on Sunday.

The 10th-ranked crypto has since corrected but is back up 5% on the day to $70.74.

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