The winter breeze is numbing the crypto market, as the digital assets remain circumscribed to narrow price movements. Hodlers and traders quiver in cold, as the top-tier crypto assets dawdle on the charts. The second-largest cryptocurrency has been an apple of enthusiast’s eye’s. Howbeit the exorbitant gas fees have been a concern for the industry.
The long-standing grievances of the users remain unresolved, despite numerous indents. It is a known fact that Ethereum is a blockchain for the masses. As it has been a go-to platform for dApps, De-Fi, NFTs. Consecutively, consumers have to incur the charges that are levied on the use of the n-number of applications that the protocol clings to. Meanwhile, an industry proponent enlightens on the price progression.
Will Ethereum Relinquish Its Throne?
As previously mentioned, the network’s gas fees have been a growing concern for the space. The CEO of Three Arrows Capital Su Zhu had previously cited the extreme anguishes that are prevailing in the industry. Over the charges, that consumers of the tech have to incur. Which he did retreat following criticism by maximalists.
Yes I have abandoned Ethereum despite supporting it in the past.
Yes Ethereum has abandoned its users despite supporting them in the past.
The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross.— Zhu Su 🔺 (@zhusu) November 21, 2021
However, a majority of the section do opine similarly, as the blockchain is gradually turning into an elite affair. Consecutively, an Ethereum developer mentions that a lot of smart people are working towards countering the shortcomings. He further mentions that the delay in the upgrade is owing to the massive database the network has to handle.
The developer does agree with the fact that the layer-2 adoption is not as widespread as it should have been. The same holds for the EVM compatibility, which is not raging at a faster pace. Sections also believe the reduction in gas fees would not surpass the expectations with the ETH 2.0. It could rather be a minor attribute to the network.
ETH Price Trajectory
The digital asset at press time is trading at $4,153.03, with gains being negative by 0.6%. While the market cap of the second-largest digital coin is at $494,806,567,322. The intraday trade volumes are at $20,510,460,095. The ATH of $4,878.26 was hit a day short of the fortnight from press time.
The fall since the ATH has left the digital asset to the current levels. Which has been lacking any heroic moves to higher levels, as the bulls remain chained. Industry proponent pens his views that the ETH price could fall to levels around $3000 if it misses out on gripping the support around $4,000.
The crypto has been moving along the discernible ascending channel. ETH could retest its support levels around $4,000, prior to the bullish leg-up towards $5,000. The next major milestone would be around $7,000. On the flip side, it might reach the aforementioned levels.
Collectively, The network does need a major overhaul that could resolve the shortcomings of the network. A delay in the upgrade would result in users, investors, and applications looking elsewhere. Which could lead to Ethereum relinquishing its throne to the Ethereum-killer. That said, it could be unlikely as the makers have been working towards the project for a considerable time now.
Coinbase adds ETH2 ahead of key upgrade this week
- The ETH2 coin listed on Coinbase will mirror the original Ether (ETH) token at least up to June 2022.
- This comes just ahead of the Arrow Glacier update that would delay the difficulty bomb on Etheruem.
Cryptocurrency exchange Coinbase seems to be preparing for a key upgrade on the Ethereum blockchain coming up this week on December 10. The crypto exchange has added a mirrored version ETH2 of the Ethereum blockchain’s native cryptocurrency Ether (ETH).
This new version of Ether just tracks the original Ether market data synchronously. As you can see in the below tweet, the cost of purchasing ETH2 is the same as that of the ETH crypto. Interestingly, the two trading volumes, market cap, circulating supply and price turn out to be the same.
However, unlike the original ETH, the new ETH2 crypto shows no trading activity. It seems that the newer version will just merely track the ETH market data at least up to mid-2022. It also shows that Coinbase is making all the early preparations for Ethereum 2.0 upgrade. Thus, ETH2 seems to be posing as the native cryptocurrency of the ongoing update of the Ethereum blockchain.
Interestingly, the recent ETH 2 listing on Coinbase happens just before the upcoming upgrade “Arrow Glacier” which will further delay the difficulty bomb.
Arrow Glacier update before Ethereum 2.0
The upcoming Arrow Glacier update on Ethereum will delay the difficulty bomb which would make it difficult for people to mine Ether. However, if the BOMB is triggered, it will slow down the Ethereum blockchain as far as it remains proof-of-work.
One of Ethereum’s core developers – Tim Beiko – said that the Arrow Glacier upgrade could probably be the last upgrade before Ethereum 2.0 goes live by June 2022. The Ethereum 2.0 will bring a significant change to the network design. Firstly, this includes a full-scale transition from the Proof-of-Work (PoW) to the Proof-of-Stake (PoS) blockchain.
In the existing PoW Ethereum network, nodes have to validate each transaction to maintain the Ethereum public ledger. However, the Ethereum 2.0 upgrade will introduce “sharding”. This will divide the entire network into small segments dubbed “shards”. Later, it will randomly assign the nodes to each shard.
This will remove the need for each node to scan the entire chain while improving the speeds and lowering the costs required to maintain the network. These individual shards will share the transaction details with the Beacon Chain, which is the backbone of Ethereum 2.0.
ETH2 won’t be a new crypto
The Beacon Chain will validate transactions on each shard while assisting the Ethereum 2.0 network in reaching consensus. It will detect dishonest validators and further initiate penalties by removing a part of the validator’s stake from circulation.
The current ETH token will serve as a staking token in the Ethereum 2.0 PoS design. Staking of ETH will allow validators to participate in a network consensus and thus receive block rewards.
Ethereum Challenger Terra Becomes Third-Largest Blockchain by Total Value Locked, Surpassing Solana and Avalanche
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).
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.
“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.
Fourth-Largest Ethereum Whale Pounces on Large-Cap Altcoin, Accumulating $580,000,000 in Crypto
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.
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.”
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.