ETH has started the second round of surge this year, can it bring the long-awaited bull market?
Editor's Note: This article comes fromChain reference (ID: lianneican), Author: Internal Reference Jun, reprinted by Odaily with authorization.
Editor's Note: This article comes from
Chain reference (ID: lianneican)
Chain reference (ID: lianneican)
The BTC reward halving market is disappointing, and it is still in a sideways market, still oscillating between 9,000-10,000 US dollars. However, ETH has started a new round of surge after two months, and it is only one step away from the annual high of 283 US dollars set in February.
According to statistics from Feixiaohao, as of June 5, ETH has increased by 85% since the beginning of the year, and by 18% in the past month. This is the second time that ETH has risen sharply this year. This also somewhat makes people look forward to the bull market.
It is undeniable that the two surges of ETH have a lot to do with the hype of ETH2.0. Since the beginning of the year, the upgrade of ETH 2.0 has been pushed again and again. As for when it will be realized, there are still doubts. This also started a slow hype process, which also has certain external support for the future price of ETH.
Although the ETH network is still congested, the growth of landing applications has become the internal cause of its price rise.
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ETH whale hits 10-month high
The total number of ETH whale addresses just hit a 10-month high. According to crypto data analytics firm Santiment, the top 100 non-exchange wallets now hold a combined 21.8 million ETH.
That amount equates to $4.5 billion, bringing the cumulative holdings of ETH’s top addresses closer to $5 billion, Santiment said. According to analysts, this is the largest collective balance among the top 100 whale wallets.
Businesses with large ETH holdings continued to hoard the cryptocurrency, and the rush by these large investors likely fueled the surge in ETH prices, the firm added.
In addition, the ETH trust fund ETHE of the cryptocurrency asset management company Grayscale Investment has a huge premium to the spot price of its underlying asset ETH. The query found that as of June 2, ETHE was trading at $177 per share, representing 0.09402547 ETH per share, which means that each ETH in ETHE was worth $1882, compared to the ETH spot price (about $236) The premium rate is as high as 697%. On June 1, the trading price of ETHE per share was $137, and the price of each ETH was $1,457, which is a 517% premium to the spot price.
Ryan Watkins, a research analyst at crypto data tracker Messari, is closely watching the balance between ether and the many tokens on the ETH blockchain.
He said, “ERC-20 tokens are close to 50% of the total value of ETH. In the past two years, the way value is stored and transferred on the ETH blockchain has undergone a complete transformation.”
ETH is getting closer to being disrupted by its own blockchain. Whether or not this will happen may depend on the growth of Retino against the growth of ETH's value.
However, the shift in value of ETH is not just about storage of assets. They are also used to transfer large amounts of value. Driven by the growth of stablecoins, ETH is on track to surpass $530 billion in settlements this year. "
Pal and Sorout are the only prominent cryptocurrency analysts who have said that ETH has a good chance of overtaking Bitcoin in the next bull run. However, there are strong fundamental reasons to be bullish on cryptocurrencies.
As previously reported by NewsBTC, data site DeFi Pulse has revealed that $953 million worth of various crypto assets are now locked in DeFi applications.
This trend shows that DeFi is growing, so ETH should too. The founder of ETH-based app MakerDAO said:
“4M Dai was minted to WBTC in just one transaction. This really shows underlying demand for non-ETH assets and is the start of a broader trend of DeFi as an economic vacuum that will eventually attract nearly all value to the ETH blockchain .”
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ETH 2.0 is worth looking forward to
However, this kind of expectation has caused everyone to be disappointed, but at the same time, it has also made people have higher and more expectations for ETH 2.0, and even its progress directly represents the progress of the entire public chain of the blockchain.
Recently, there is a piece of news that is fundamentally good for ETH: V God said in a Twitter post that the solution deployed for the second layer expansion of ETH has been basically successful. What does this mean? This means that ETH has taken a huge step forward in performance.
As we all know, the biggest problem of ETH now is the low operating performance, which leads to the slow operation of contracts on ETH and high transaction costs. Because of this, improving the performance of ETH is one of the core issues to be solved by ETH 2.0. In addition to solving the problem of performance expansion on ETH 2.0, the ETH community has also proposed a series of solutions to expand performance under the chain, which is the second-layer expansion that V God said.
Not only has the industry seen this trend of ETH and recognized the importance of ETH 2.0, but investors have also seen this trend of ETH. Some time ago, Grayscale Fund released the latest investment report. Judging from the data shown in the report, institutional investors are now buying ETH much faster than BTC.
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Why ETH 2.0 is so late
So, why is ETH 2.0 taking so long? The constant search for code bugs is the main reason behind the delay in the release of Ethereum 2.0, which was originally scheduled for January 2020. Indeed, finding and eliminating bugs is a painstaking task, and routines such as security audits, fuzzing, detecting and fixing bugs can take months and never end because the code itself is a never-ending Perfect unlimited streaming.
Since it is the client that is responsible for storing blockchain data and validating blocks, it is important to ensure that they are fully in sync. Currently, ETH 2.0 2.0 has 7 clients under development, most of which are being optimized for the Schlesi test network, the first ETH 2.0 2.0 multi-client test network that simulates the core network environment.
The Schlesi testnet for ETH 2.0 2.0 was very successful, raising hopes for a more formal testnet based on the 0.12 specification in June. Much of the group's current work is devoted to correcting bugs in the code and improving detection methods. Mehdi Zerouali of Sigma Prime reports significant progress in developing "obfuscation" methods, which feed fictitious data into programs to find flaws.
However, if one digs into the core cause of these bugs, it becomes clear that ETH 2.02.0 multi-user mode is the main cause of the delay.
ETH 2.0 currently has seven client implementations, namely Cortex Nethermind, Ethereum Foundation Trinity, Lodestar ChainSafe, Prysm Labs Prysmatic, Sigma Prime Lighthouse, Status Nimbus, and Teku PegaSys.
The development team took a so-called "first spec" approach to create the basis on which each client will work. Needless to say, the amount of work involved is enormous, as the approach first foresees the completion of the entire draft protocol and then the implementation process itself. This "multi-client model" caused delays as human resources were clearly insufficient to ensure optimal development.
But having multiple clients is critical to maintaining a high level of network security, and the development team is certainly not sacrificing security for optimal boot times. Even if it means breaking some promises and delaying the release.
Also, aside from bugs and bug hunting, there are management issues that are pushing the release date even further due to the human factor.
To understand how the entire network works, it is necessary to understand some teams of shards, called clients. Other teams are responsible for conducting security audits, while others work on the ETH 2.0 network. An experienced manager will say that such a distribution of labor will facilitate effective delegation, but will also note that it also complicates the development of larger systems, throwing smaller tasks into the background .
Write at the end:
The more people involved in the development of the platform, the more organizations are needed and the more software is put into the main operating pool. As technical scalability emerges, social scalability must be achieved under proper management to ensure smooth and streamlined operations.
"We don't have enough people to help us solve these problems," said ETH developer Jameson Hudson.
Given the above challenges, the testnet must remain fully operational for at least two months to be eligible for an official launch. Currently, two customers are using the Schlesi network - Sigma Prime's Lighthouse and Prysmatic Labs' Prysm. Teku and Nimbus clients are also synced with Schlesi and will launch their validators on the test network soon.
