ETH Weekly Report | About 90% of Bitfinex’s futures traders are long ETH; the space occupied by the Ethereum blockchain archive node has exceeded 4 TB (4.6-4.12)

Author | Qin Xiaofeng

Author | Qin Xiaofeng

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1. Overall overview

1. Overall overview

Second, the secondary market

Second, the secondary market

1. Spot market

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(ETH daily chart, picture from OKEx)

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2. Fund flow                                  

(data from BiNuNiu)

(data from BiNuNiu)

In terms of funds, funds fluctuated greatly last week, with the largest net inflow on Monday, exceeding US$160 million; and the largest net outflow on Friday, exceeding US$160 million.

(data from Tokenview)                          

(data from Tokenview)

Tokenview dataIt shows that the number of transfers on the chain rose sharply last week, and the number of transfers of "above 5,000 ETH" and "above 10,000 ETH" increased by 19% and 6% month-on-month, but the number of large-value transfers of "above 50,000 ETH" decreased by 83% month-on-month. It shows that most of the transfers are small transfers, and the frequency of giant whale transactions is low.

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3. Ecology and technology

3. Ecology and technology

1. Development and technology

1. Development and technology

(1) PlatON completed the MPC algorithm design and first-stage code implementation of the ETH 2.0 PoC solution

Recently, PlatON officially completed the design of the secure multi-party computation (MPC) algorithm and the implementation of the first-stage code in the Ethereum 2.0 Proof of Custody (PoC), and open sourced it on GitHub.

The design of Ethereum 2.0 is based on the architecture of a beacon chain connected to multiple parallel shard chains. Each shard chain is relatively independent, and a committee composed of some validators produces blocks. Since these validators are independent of each other, there is bound to be a data availability problem when working together. To solve this problem, Ethereum 2.0 proposes a PoC solution, which requires the validator node to submit a "proof of data possession" when submitting a block. In order to prevent single points of failure and reduce validator delegation costs, the overall design goal of PoC includes compatibility with MPC. In addition, MPC can establish a trustless delegation pool, and it is possible to derive a new Staking model based on this.

Based on this design goal, Ethereum invited PlatON to participate in the MPC design and code implementation of PoC through the form of funding from the Ethereum Foundation. At present, PlatON has completed the first phase of code implementation, and tested it at the same time as GitHub open source

(2) The space occupied by the Ethereum blockchain archive node has exceeded 4 TB

（3）The footprint of archive nodes running the Ethereum blockchain has now grown to over 4 TB, nearly doubling in a year. This value represents the total amount of data that needs to be downloaded when the user wants to run the archive node. These archival nodes store a full snapshot of the Ethereum blockchain, including a record of all transactions that have ever occurred, unlike typical full nodes, which only record a ledger of verified transactions. Although most Ethereum clients choose to store only necessary blockchain data, Ethereum's state bloat problem remains to be solved. Note: Archive nodes are not necessarily required, as full nodes have a copy of all transactions, but they are useful for certain tasks, such as finding out the balance of an Ethereum address at a certain point in time. (Decrypt)

ETH network data explorer The Graph releases V0.18 version node

On April 11, The Graph, an ETH network data explorer, officially released the V0.18 version of nodes, command line interface and TypeScript. The new features of this version include: full-text search based on text query, data source templates that can pass additional configuration to other data sources, and 3Box files that can obtain ETH address and DID configuration file data, etc. According to previous news in February, Graph Protocol, an information technology service company, launched a resource manager for collecting ETH network data, with the purpose of collecting data from the Ethereum network and the Interplanetary File System (IPFS). (Github)

On April 7, Summa, a decentralized financial service provider, launched an open source "cross-chain exchange system", which will provide cross-chain contracts that do not require trusted parties, non-custodial private self-execution and settlement, to achieve cross-chain between Bitcoin and Ethereum trade. Currently, the cross-chain system code is submitted to Github. Prior to August 2019, Summa had joined forces with the privacy protocol layer Keep to launch a cross-chain working group to realize the use of Bitcoin in the Ethereum ecosystem. (Coin Gape)

2.DEX

according toDAppTotal.com DEXThe data on the special page shows: 17 DEX projects based on the Ethereum network have been counted. The transaction volume on the chain in the past week totaled 335,920 ETH (approximately 53.74 million U.S. dollars), an increase of 24% from the previous week; up 15%.

according to

3.Dapp

according toDappreview dataDappreview data

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(data from etherchain.org)

etherchain.org(Mining difficulty changes)

(Mining difficulty changes)

4. News

4. News

1. The Ethereum Foundation: New funds allocated to teams in 2019 totaled $7.809 million

The Ethereum Foundation recently released a report announcing the latest progress of the Ecosystem Support Program (ESP) and the use of financial funds in 2019.

In 2019, new grants from the Ethereum Foundation to teams totaled $7.809 million. According to the spring report of 2019, the Foundation will invest $30 million in key projects on the entire Ethereum ecosystem, regardless of whether the price of ETH rises or falls, this budget will not be affected; in addition, the $19 million plan in the budget It is used to support the development of ETH 2.0, USD 8 million is used to support the development of "ETH 1.0", and USD 3 million is used to introduce and motivate development talents. (Ethereum Foundation)

2. Grayscale Ethereum Trust trades at a premium of 515%

Grayscale Investments’ Ethereum Trust (ETHE) cost $90.55, but its current holdings are worth just $16.10 per share. This means investors are paying a 515% premium, five times more expensive than on the open market, to buy Ethereum through the Grayscale Ethereum Trust. (Cointelegraph)

3. Report: The amount of ETH held by exchanges has increased by 5% in the past month

According to a new report from Coinmetrics, the amount of Ethereum held by exchanges has increased relatively over the past month, while the amount of Bitcoin held by exchanges has declined. According to the above data, the amount of ETH on exchanges has increased by 5%, while the amount of BTC held on these platforms has decreased by 3%. Santiment also observed a positive uptick in ETH sentiment in a recent analysis. Since early January, the number of addresses on Ethereum has increased from 40,000 to 70,000, an estimated 75% increase in 4 months, data shows. This shows that despite the recent market struggles, the community remains bullish on Ethereum in the long term. (AMBCrypto)

CryptoSlate4. Analysis: Ethereum demand is booming, investors are still bullishGlassnodeThe analysis article released stated that although Ethereum has fallen by nearly 15% in the past few days, market trends show that most investors or at least one large trader still believe that Ethereum will continue to rise. Su Zhu of cryptocurrency and exchange fund Three Arrows Capital observed that on April 10, there was a large Ethereum buying area on Bitfinex, with buyers placing bids for 250,000 ETH between $159 and $162, equivalent to About $40 million. Meanwhile, IntoTheBlock’s indicators also suggest that Ethereum is “mostly bullish” rather than neutral or bearish. In addition, news events such as Reddit will launch Ethereum-based community points also show that the adoption of ETH is booming.

The data shows that Ethereum's MVRV ratio is currently 0.8, which may indicate that it is still undervalued.SkewIn addition, according to the data analysis website

According to the data, the volatility term structure of ETH/USD will fall to 121.22 from 193.41 on April 8. Over the next few months, until December 2020, the volatility term structure will drop to 106.98 with the Christmas 2020 expiry contract. Traders say ethereum's most volatile period is over. (Comprehensive report by CryptoSlate and Ambcrypto)

5. About 90% of futures traders on Bitfinex are long ETH, which may be related to the progress of ETH 2.0

As of the evening of April 10, nearly 90% of margin traders were long on Bifinex, with a total amount of about US$314 million involved. On BitMEX, only 47% of traders are doing long trades, and the volume is many times smaller than on Bitfinex. According to data from lowstrife, 1.975 million ETH are being longed on Bitfinex alone, which accounts for about 1.8% of the total circulating supply.

The large number of margin longs on Bitfinex has caught the attention of traders. Some speculate that ETH has formed a long-term bottom. Trading volumes fell sharply in March, and prices have been choppy since then, but are now most likely bottoming out. Others, however, see it as just a strategy to squeeze long positions. The macroeconomic outlook continues to be worrisome. At the same time, the annualized interest rate of ETH on Coinlend has reached an astonishing 197%. The spike may be related to margin longs against ETH on Bitfinex.

However, most traders still choose to wait and see from the sidelines. There are also some speculations that the crazy long is because the preparation phase of ETH 2.0 phase 0 is about to be completed, and phase 0 is expected to be launched in July. But even with Phase 0 released, Ethereum 2.0 will not be fully functional for many years. (Beincrypto)

6. Partner of a16z Cryptocurrency Entrepreneurship School: Bitcoin and Ethereum are difficult to replace