ETH Weekly Report | The main network has completed the 10th shadow fork; the test network Goerli/Prater began to merge on August 4 (7.25-7.31)

Author | Qin Xiaofeng

Editor | Hao Fangzhou

Produced | Odaily

1. Overall overview

Author | Qin Xiaofeng

Editor | Hao Fangzhou

1. Overall overview

Second, the secondary market

1. Spot market

In terms of the secondary market, the current ETH price may continue to consolidate in the short term, with support levels of $1,500 and $1,600 and resistance levels of $1,900.

(ETH daily chart, picture from OKX)

According to OKX market data, the price of ETH once rebounded to $1,780 last week, and closed at $1,711 during the week, up 6% month-on-month.

2. Large transaction

OKlink dataThe daily chart shows that the price is currently consolidating at $1,700, and may step back on MA10 ($1,600) and the mid-rail of the Bollinger Band at $1,500 in the short term; the upper resistance level is $1,900.

3. Rich list address

OKlink dataIt shows that the number of transfers on the chain decreased slightly last week, and the "above 1000 ETH", "above 2000 ETH" and "above 5000 ETH" decreased by 22.89%, 28.73% and 43% month-on-month respectively, indicating that the trading enthusiasm of giant whales has dropped significantly.

3. Ecology and technology

1. Technological progress

3. Rich list address

OKlink data

It shows that the current pledge rate of ETH in the entire network is 11.06%, an increase of 32,064 ETH compared with last week; from the perspective of the distribution of holding addresses, exchanges accounted for 9.76%, a decrease of 0.23% month-on-month; DeFi projects accounted for 17.25%, an increase of 0.03% month-on-month; Large addresses (the top 1,000 addresses and excluding exchanges and DeFi projects) accounted for 39.84%, down 0.09% month-on-month; other addresses accounted for 33.17%, down 0.17% month-on-month.

3. Ecology and technology
1. Technological progress

(1) The main network of Ethereum has completed the 10th shadow fork, 26 hours earlier than expected

(2) The Goerli/Prater merger of the Ethereum test network will be carried out in two steps starting on August 4

2. Voice of the Community

The Ethereum protocol support team issued a Goerli/Prater merger announcement, saying that in the last testnet PoS conversion, Goerli will soon merge with Prater, and the merged network will retain the name of Goerli. The merger process is divided into two steps. First, the network upgrade Bellatrix on the consensus layer is expected to start at 12:24 UTC on August 4, 2022 (20:24 on August 4, Beijing time), followed by the execution layer The Paris upgrade is expected to take place between August 6th and 12th, 2022 UTC (total difficulty 10790000). Post-merger, Goerli's validator network will remain open for stakeholders to run testnet validators.

If no issues are found during the Goerli/Prater merger, once the client releases a fully functional version, a slot height will be selected for the Bellatrix upgrade on the mainnet beacon chain and a total difficulty value will be set for the mainnet transition. The client will then publish a version that enables The Merge on mainnet.

(3) Gnosis Chain, the Ethereum side chain, plans to launch within this week to merge with the developer network

Open-source Ethereum consensus client Lodestar developer @dapplion said that the Ethereum side chain Gnosis Chain has successfully forked the shadow last week, and plans to release the merged developer testnet within this week. The details of the testnet will be Released within this week.
2. Voice of the Community
(1) V God: Merge, Surge, Verge, Purge and Splurge will occur in parallel

V God tweeted: "Merge, Surge, Verge, Purge, and Splurge are not different stages, but will happen in parallel." According to previous news, V God said at the Ethereum Community Conference (ETH CC) that Merge (Merge) It's just a small step in the development of Ethereum, followed by Surge, Verge, Purge, and Splurge.

(2) V God: The current price of ETH has not been affected by the merger event

According to Coingape analysis, this highly anticipated merger is most likely to occur on September 19, but the PoS conversion will not be completed immediately with the merger of the Ethereum mainnet and the beacon chain. Ideally, a few upgrades, Surge, Verge, Purge, and Splurge, are critical to "merge". Expect a waiting period of 6-8 months before the actual price moves "under the right conditions". Ethereum will be deflationary after the merger.

3. Project trends

According to previous reports, V God has said that Merge, Surge, Verge, Purge and Splurge are not different stages and will happen in parallel. Ethereum has successfully completed the tenth shadow fork, and the Goerli/Prater merger of the Ethereum test network began in two steps on August 4. (Coingape)

(3) V God: "Governance" and "rule" are two different things, and governance needs to be more open, transparent, and decentralized

Ethereum co-founder Vitalik Buterin (V God) expressed his views on DAO (Decentralized Autonomous Organization) on Twitter. He believes that the DAO that issues transferable governance tokens is contradictory to the essence of DAO. Transferable governance tokens are all about giving "more" power to "those who most want to rule".

In addition, he said in reply to netizens' comments that "governance" and "rule" are two different things. Preventing domination is a fundamental principle of blockchain, but preventing all governance is impossible. Governance needs to be more open, more transparent, and more decentralized. Even though it will be less efficient, some basic governance is still necessary. Otherwise, the underlying technology will not develop, and many applications will not be realized.

3. Project trends

DeFi Llama's streaming payment protocol LlamaPay has reached a cooperation with the smart contract testing protocol Ante Protocol AF, and has started testing on the Ethereum and Avalanche networks.

The developer of the Ethereum Layer 2 network Arbitrum said that it will soon upgrade Arbitrum One to the Nitro stack, and announced the testnet upgrade plan, which will be upgraded to the mainnet within a few weeks after the testnet migration is successful. Specifically:

• (2) Data: The number of independent ENS addresses exceeded 500,000

• According to data from Dune Analytics, the number of independent addresses for the Ethereum domain name service has exceeded 500,000. In addition, the number of primary domain names currently registered is 356,567, and the total number of created domain names is 1,812,681.

• According to NFTGo.io data, buymydomainplz.eth was sold at a price of 95 ETH (approximately US$153,439.44), setting the eighth highest record in the history of Ethereum domain name service ETH-denominated transaction volume.

• (3) Arbitrum announced the testnet upgrade plan to upgrade Arbitrum One to the Nitro stack

• The developer of the Ethereum Layer 2 network Arbitrum said that it will soon upgrade Arbitrum One to the Nitro stack, and announced the testnet upgrade plan, which will be upgraded to the mainnet within a few weeks after the testnet migration is successful. Specifically:

A new version of the Nitro node was released on July 25th, which will be required to run Rinkeby after the upgrade (happened on the 28th);

The Goerli Nitro Devnet will be shut down on July 26, and the Goerli Nitro Testnet consensus will be updated on July 27 (all Nitro nodes will be updated to beta.3 or later);

On July 28, the Rinkeby testnet will be temporarily offline (about 2-4 hours), and Offchain Labs will convert the existing classic database to the Nitro database through a series of steps;

When the Rinkeby migration occurs, the on-chain contract will be upgraded to Nitro, and the chain will be restored after the test is completed;
Offchain Labs will maintain open support for the Rinkeby testnet (upgrade to Nitro) until the Arbitrum One mainnet upgrade to Nitro.

(5) Lido DAO votes against the sale of LDO tokens to Dragonfly Capital temporarily, and votes again at an optional time

The proposed sale of 10 million LDO tokens to venture capital firm Dragonfly Capital for $14.5 million has been temporarily rejected by the Lido Finance community with a 66 percent vote, according to a community vote that concluded on Monday. Lido officials stated that based on the voting results and discussions on the research forum, the proposal will be revisited and a new vote will be conducted as soon as possible.

The Lido Finance community also has a proposal related to financial management that has not yet been voted on, proposing to sell 10,000 Ethereum in the project treasury as a stablecoin. Lido vaults currently hold $290 million worth of funds, including 158 million LDO tokens ($251 million), 20,940 ETH ($32 million), 5 million pledged ETH ($7 million), and a handful of other tokens . According to previous news, Lido plans to sell 20 million LDOs from the DAO treasury, and Dragonfly Capital plans to purchase 10 million LDOs. (The Block)

Decentralized insurance project Nexus Mutual announced to provide insurance services for Ethereum pledges. Nexus Mutual will provide protection for the potential penalty risk and reward reduction risk of ETH pledge verification nodes. Liquid staking protocol StakeWise has insured its staking product.

4. Borrowing

DeFiLlama The Ethereum staking protocol Pocket Pool Smartnode stack has been upgraded to v1.5.0 to support the upcoming Redstone upgrade and Ethereum merger. Among them, the Redstone upgrade is expected to be carried out on the mainnet on August 29. Additionally, this version will be fully compatible with the launch of Goerli-Prater Merge around the second week of August, and users wishing to test it will need to upgrade to this version as soon as possible. This version will no longer support light clients such as Infura and Pocket, and users need to run a complete execution client.

5. Mining

(data from etherchain.org)

etherchain.orgThe data shows that the value of locked collateral on the chain rose from US$58.85 billion to US$63.43 billion last week, an increase of 7.7% a week; the net increase of US$3.87 billion in the previous week was a net increase of US$4.58 billion last week, an increase of 18.3% from the previous week. Specifically, the amount of ETH mortgages rose from 36.75 million to 37.38 million last week, an increase of 1.7%. From the perspective of individual projects, the top three lock-up values ​​are: MakerDAO $8.63 billion; Lido $7.34 billion; Aave $6.67 billion.

4. News

5. Mining

image description
(data from etherchain.org)

The data shows that last week, the average computing power decreased by 0.68% month-on-month, temporarily reporting 931TH/s; the average mining difficulty decreased by 1.7% month-on-month, temporarily reporting 12031T; the activity on the chain increased by 20.5% month-on-month, and the total mining revenue decreased slightly by 0.7%.

4. News

(1) Data: Uniswap's single-day transaction fee is nearly three times higher than the Ethereum network transfer fee

According to Crypto Fees data, Uniswap generated a transaction fee of US$9.598 million on July 25, and the Ethereum network transfer fee was US$3.323 million during the same period. In addition, Uniswap’s 7-day average fee was $8.947 million, and the Ethereum network transfer fee was $3.589 million.

It is reported that on January 1, 2022, the daily transfer fee of Ethereum is nearly 10 times that of Uniswap.

(2) CME Group’s average daily holdings of cryptocurrency derivatives in the second quarter of 2022 hit a quarterly record high

According to the latest report released by CME Group, in the second quarter of this year, the average daily open interest of its encryption products was 106,000 contracts, a quarterly record high; the average daily trading volume was about 57,000 contracts, the second highest in quarterly history, of which The average daily trading volume of Ethereum futures contracts in the second quarter reached 6,600 contracts, an increase of 27% from the first quarter, which also hit a record high. In addition, a record 26,500 contracts were traded in a single day on June 15. (Blockworks)
(3) Data: From July to now, the trading volume of Ethereum NFT on OpenSea has exceeded 500 million US dollars, a month-on-month decrease of 28%

Dune data shows that since the beginning of July, the value of Ethereum NFT transactions in US dollars on OpenSea has exceeded US$500 million, compared with US$695 million in June, a month-on-month decrease of 28%.

In addition, about 1.62 million Ethereum NFTs have been sold on OpenSea so far in July (compared to 1.54 million in June), and the number of active traders has increased slightly from 392,639 in June to 401,630 in July so far. This shows that people are still trading NFTs at a relatively steady pace, but at a much lower average price than before.