London upgrade is about to start, ETH is still in a downturn
The Ethereum Foundation announced the latest progress of the London upgrade on July 15. This upgrade will be activated when the main network reaches the block height of 12965000. The specific time is expected to be between August 3 and 5.
The London upgrade has attracted much attention due to EIP-1559, which will improve the existing fee mechanism and continue to destroy ETH. In addition, proposals such as EIP-3529, EIP-3198, and EIP-3541 will also optimize network performance and lay the foundation for future upgrades.
However, after the London upgrade entered the countdown phase, the performance of ETH in the secondary market was not as strong as expected. Since its fall from the high point of 4380 US dollars, several rebounds have been insufficient, and it is now weakly consolidating around 1900 US dollars.
The good news is that according to Glassnode, ETH holders are actively moving their tokens out of centralized exchanges. At the same time, the amount of ETH locked in smart contracts is increasing. This suggests that holders are less willing to sell ETH in the short term.
In addition, the number of deposits in the ETH2.0 deposit contract address has also continued to increase. According to Okey Cloud Chain data, on July 19, the ETH2.0 deposit contract address has received 6.3502 million ETH, accounting for 5.44% of the ETH supply. This part of Token will be locked.
secondary title
London upgrade is about to start, ETH is still sluggish
image description
Ethereum Foundation Releases London Upgrade Announcement
The Ethereum Foundation notes that in order to be compatible with the London upgrade, node operators will need to upgrade the version of the client they are running. After the London upgrade, the OpenEthereum client will be deprecated. Before the upgrade, all bug bounties related to the London upgrade will be doubled.
Developers are waiting for the upgrade. As of July 20th, the London upgrade is only half a month away from the official implementation. What changes will this high-profile hard fork upgrade bring to the Ethereum network?
When it comes to London upgrades, I have to mention the high-profile EIP-1559. Its core is to adjust the pricing mechanism of Ethereum network transaction fees, and provide users with a predictable transaction fee system through the combination of basic fees and tips, so as to avoid users paying more in the current bidding priority block generation mechanism .
At the same time, after the implementation of EIP-1559, the basic fees paid by users will no longer be collected by miners, but will be destroyed, and the deflation effect it brings is also widely expected.
In addition, EIP-3529 is also an important part of London's upgrade. To put it simply, in the current version, the contract deployer actively cleans up the contract and can get a Gas refund. The original purpose of this design is to reduce network congestion and improve stability. But in fact, people often fill the network with junk data when the network Gas is low, and delete junk data and get refunds for arbitrage when the Gas is high, which in turn aggravates network congestion. EIP-3529 proposal can be said to alleviate this problem, it will "remove the refund of certain opcodes", so that the network will become stable.
Proposals such as EIP-3198, EIP-3541, and EIP-3554 will also be deployed in the London upgrade. Their specific "responsibilities" include laying the foundation for future network updates and postponing the difficulty bomb.
secondary title
ETH outflow from exchanges ETH2.0 lock-up volume continues to grow
At present, the encrypted asset market is going through a downturn after the plunge. The London upgrade is not enough to reverse the overall market sentiment. It is also reasonable that the trend of ETH is weak.
image description
ETH in the exchange is flowing out
Generally speaking, the outflow of encrypted assets from centralized exchanges indicates that holders’ willingness to sell is weakening, while the increase in ETH pledged in smart contracts also indicates that holders hope to continue holding coins in the short term.
According to the data of Okey Cloud Chain on July 19, the number of ETH holding addresses reached 60,565,121, an increase of 56,166 within 24 hours, which seems to indicate that more users are transferring ETH back to the chain.
Another data worthy of attention is that during the market downturn, the number of deposits in ETH2.0 deposit contract addresses continues to increase. According to data from the "Chain Master" of Okey Cloud Chain, on July 19, the ETH2.0 deposit contract address has received 6,350,200 ETH, accounting for 5.44% of the ETH supply, and 88,160 ETHs have been newly pledged in the past week. Currently, 39,099 addresses have pledged ETH2.0, and 1,879 addresses have been added in the past week.
ETH's "locked volume" continues to increase, coupled with its upcoming upgrade in London and plans to upgrade to the PoS system in the future, making the outside world optimistic about it in the long run.
Business Insider recently reported that Goldman Sachs predicts that the total market value of ETH may exceed the total market value of Bitcoin in the next few years. The agency believes that ETH currently appears to be the encrypted asset with the highest potential for actual use, "because Ethereum is the most popular. Smart contract application development platform.”
Alex Mashinsky, founder of crypto asset depository and lending company Celsius Network, also predicted that by 2022 or 2023, the market value of ETH will completely exceed that of Bitcoin.
Since the popularity of DeFi, Ethereum has grown as the largest DeFi protocol, and its network value has gradually been recognized by more and more people. According to DeBank data on July 19, the total lock-up value on the Ethereum chain was US$52.89 billion, accounting for 71.2% of the total lock-up volume of all mainstream public chains of US$74.2 billion. Although its lock-up volume dropped sharply during the "5.19" currency market plunge, but in the past two months, this value has slowly recovered and is currently in a relatively stable stage.
It is foreseeable that before the official implementation of ETH2.0, the amount of ETH locked in the ETH2.0 deposit contract will continue to increase, and the actual circulation of ETH will decrease accordingly. After the upgrade in London, the performance of the ETH network is expected to be optimized, and the gas fee level is also expected to be reduced, which will help the further development of its ecology. In addition, with the implementation of EIP-1559, ETH will continue to be destroyed, which will intensify the deflationary effect.
Although the market performance of ETH is in a downturn, the development process of this value network has never stopped. On the eve of the London upgrade, the Ethereum network is still laying out its potential value.
