ETH Weekly | Developers propose that the reasonable target time for Cancun activation is October; the balance of ETH on centralized exchanges has dropped to a seven-year low (5.22-5.28)

1. Overall overview

1. Overall overview

As of Thursday, 14.85% of ETH was held in centralized exchange wallets, the lowest level since July 2016, according to Glassnode data. In comparison, during the bull market in 2021, the exchange balance accounted for about 25-26%. Typically, low exchange balances are a bullish sign, as it means there is a limited supply of ETH available for purchase.

Core developer Alex Stokes says a reasonable target date for the Cancun activation is October 2023, with the upgrade "at least 5-6 months away" based on its current scope. Core developer Tim Beiko suggested that developers revisit conversations around the scope of the Cancun upgrade in future conference calls, and he also suggested that future conversations around expanding the scope of Cancun be limited to the following five EIPs: EIP-5920, 5656, 7069 , 4788 and 2530.

Second, the secondary market

Second, the secondary market

1. Spot market

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ETH daily chart via OKX

The daily chart shows that the price is currently consolidating around $1,900, and the lower support levels are $1,900 and $1,880; if the support is valid, it may continue to test $1,950 in the short term; the upper resistance level is $2,000.

2. Network operation

Etherscan 3. Large transaction

3. Large transaction

OKlink data4. Rich list address

4. Rich list address

OKLink dataOKLink data

token.unlocks3. Ecology and technology

3. Ecology and technology

1. Technological progress

（1 ）1. Technological progress

Ethereum's latest ACDE conference: developer Alex Stokes proposes a reasonable target time for Cancun activation in October

Christine Kim, Vice President of Galaxy Research, posted a summary of the latest ACDE discussions, including the impact analysis results of EIP-4758 and 6780, the progress of EIP-4844, and the possible inclusion of EIP 5920, 5656 in the Cancun upgrade and 7069.
The results of the impact analysis of EIP-4758 and EIP-6780 by blockchain security firm Dedaub are: “We believe that the impact of EIP-4758 and EIP-6780 is manageable and, due to the simplicity of the implementation of the Ethereum client, may be positive. , especially if EIP-6780 is selected."
Additionally, Alex Stokes said a reasonable target date for Cancun activation is October 2023. Lightclient affirms this claim, based on the fact that an upgrade to its current range is "at least 5-6 months away."
Core developer Tim Beiko suggested that developers revisit conversations around the scope of the Cancun upgrade in future conference calls, and he also suggested that future conversations around expanding the scope of Cancun be limited to the following five EIPs: EIP-5920, 5656, 7069 , 4788 and 2530.

Earlier news, Ethereum core developer Tim Beiko tweeted to summarize the latest executive layer meeting (ACDE) discussion, this meeting discusses the disabling of SELFDESTRUCT, EIP-4844 specification changes, opcode management and the potential final Cancun (Cancun) ) to add etc. In addition, it is also mentioned that with the formation of Dencun, Devnet-6 is likely to be the last development network dedicated to testing EIP-4844, and then other EIPs will be introduced for testing, and the developers will determine Dencun in the next few weeks (Deneb + the full range of Cancun).

Go Ethereum released the Ethereum client Geth v1.12.0 version (Krogam DMZ), which no longer supports Proof of Work (POW), so it can no longer be used for PoW-based private chains, or as an upstream library for projects that rely on ethash PoW.

2. Voice of the Community

2. Voice of the Community

Vitalik: External applications and protocols should not be overloaded into the Ethereum consensus

Vitalik Buterin, the co-founder of Ethereum, published an article called "Don't Overload the Consensus of Ethereum".

V God said that the consensus of the Ethereum network is one of the most secure encrypted economic systems at present. Validators worth 18 million ETH (~$34 billion) complete a block every 6.4 minutes, running many different protocol implementations for redundancy. If cryptoeconomic consensus fails, whether due to a bug or a deliberate 51% attack, a large community of thousands of developers and many more users will watch carefully to ensure the chain is properly restored. Once the chain is restored, protocol rules ensure that attackers can be severely punished.

Vitalik also recommends solutions to these problems one by one, such as decentralizing oracles that are not entirely based on cryptoeconomic principles or recovery operations based on validator voting instead of relying on L1 consensus.

3. Project trends

3. Project trends

(1) The order book DEX Mangrove has been launched on the Polygon test network, and it is planned to launch the main network in early June

Order book DEX Mangrove has launched on the Polygon testnet and says it plans to launch on the Polygon mainnet in early June. Mangrove's "advanced limit order" innovation means that a transaction intent can take the form of a piece of code and function like an IOU, so bids to sell some ETH at a specific price can exist on-chain without locking up funds. This allows traders to use the assets elsewhere without canceling bids and getting their money back, Mangrove co-founder Vincent Danos explained in an interview.

According to news on February 28, the decentralized exchange Mangrove completed a US$7.4 million Series A financing, led by Cumberland and Greenfield Capital, and participated by CMT and Gumi Crypto Capital (gCC). Mangrove will launch first on Polygon and will be rolled out to multiple Ethereum EVM-compatible chains this year. (CoinDesk)

(2) The encryption infrastructure Pimlico has been launched on the Scroll testnet

Encryption infrastructure Pimlico has launched Scroll, an Ethereum expansion network based on ZK Rollup, and has become one of the first infrastructure providers for ERC-4337 wallets on the Scroll testnet, supporting wallets to use ERC-20 tokens to sponsor user operations. According to previous reports, in February this year, Kristof Gazso, the co-sponsor of the account abstraction proposal EIP-4337, stated that he had resigned from his position at the Ethereum client Nethermind and founded the Web3 infrastructure project Pimlico, which will focus on becoming an The underlying infrastructure layer for smart contract wallet transition.

(3) Polygon: Optimizations to the Polygon zkEVM in the coming weeks are expected to reduce fees by about 20%

Polygon tweeted that optimizations to the Polygon zkEVM over the next few weeks are expected to reduce fees by about 20%, without any compression involved. Transaction fees on Polygon zkEVM include data availability and the cost of issuing proofs to Ethereum. The Polygon zkEVM publishes state data for each transaction processed, and the fee also includes the cost of running the server that generates the proof. Data availability accounts for approximately 80% of transaction fees on the network.

(4) The Ethereum Conference EDCON 2023 announced the four finalists of the Super Demo

The Ethereum Conference EDCON 2023 announced the Super Demo finalists, including: (1) Ethereum Attestation Service (EAS), an open-source infrastructure public product for on-chain or off-chain certification; (2) DeFi asset management Custom chain vault Aspis Protocol; (3) Ethereum storage rollup project EthStorage; (4) Nerif Network, a cross-chain, decentralized smart contract automation solution.

(5) The GnosisDAO proposal proposes to exchange at least 50% of the stETH in the treasury for rETH

The GnosisDAO community has launched a new proposal, proposing that Gnosis DAO commit to transferring up to 50% of its stETH holdings to rETH over time in order to support Ethereum decentralization and reduce the single protocol and " bad actors” risk. The GIP aims to guide Karpatkey, the Gnosis vault manager, to take action to reduce its reliance on stETH and introduce additional rETH into its DeFi strategy in order to reduce the risk of the DAO and provide support for decentralized Ethereum staking.

The deadline for voting on this proposal is 01:48 on May 30. The current support rate is 84.73%, and the opposition rate is 10.61%. 725 stETH (~$10 million), 712 rETH (~$1.4 million), and 18,622 ETH.

(6) NFTrade launched a new feature that allows users to purchase NFT across chains

According to the official announcement, NFTrade announced a new feature that allows users to purchase NFT and pay on different chains. The feature was created through an integration with cross-chain messaging protocol Rarimo, using NFTrade's cross-chain buying feature for Ethereum, Polygon, Avalanche and BNB Chain.

(7) The Starknet main network is already running on v 0.11.1, and the v 0.11.2 test network is planned to be launched next week

Starknet, the Ethereum Layer 2 scaling solution, announced that its mainnet has started running on v0.11.1, and plans to launch the v0.11.2 testnet next week, after which the mainnet will also go live.

v0.11.2 will activate Cairo 1 and will be ready for Cairo 1 functionality on mainnet.

(8) Cross-chain infrastructure Wanchain's domain name service and ENS integration

Cross-chain infrastructure Wanchain's domain name service Wanchain Web3 Domains is integrated with Ethereum domain name service ENS, and will provide L2 and off-chain data support for ENS.

(9) Omni Network, an Ethereum interoperability protocol, launched the Origins testnet priority access plan

Ethereum interoperability protocol Omni Network launches Origins testnet priority access program. Community members can get priority to enter the testnet by completing tasks.

(10) Swell Network launched Voyage, a pledge and liquidity incentive program, providing "pearls" as rewards

Additionally, Swell official Discord related character holders and Gitcoin donors will receive matching pearls at the end of the Voyage program. Pearl counts will be updated on the Voyage dashboard every Wednesday at 2:00 UTC.

4. Borrowing

DeFiLlamaThe data shows that the value of locked collateral on the chain rose from $26.95 billion to $28.06 billion last week, a month-on-month increase of 4.1%. Specifically, the number of ETH mortgages dropped from 14.93 million to 14.66 million last week, a drop of 1.8%. From the perspective of individual projects, the top three lock-up values ​​are: Lido $13.2 billion; MakerDAO $6.96 billion; Aave $4.66 billion.

4. News

4. News

(1) Coinbase wallet-as-a-service (WaaS) product launched on the Ethereum mainnet

Coinbase Cloud announced that its wallet as a service (WaaS) is live on the Ethereum mainnet. The main functions of WaaS include MPC-based key management; key export, backup and recovery; support for Ethereum mainnet access; MPC transaction coordination; support for ERC-721 and ERC-1155.
Coinbase senior software engineer yuga.eth said that the service was only open to the test network before, and plans to support more networks in the future after the Ethereum mainnet is launched.

As previously reported, in March of this year, Coinbase announced a "wallet-as-a-service" product designed to allow companies to build Web3 experiences with simple wallet onboarding. Companies such as Floor, Moonray, Thirdweb, and Tokenproof have begun using Coinbase's offerings to engage Web3 users in gaming, token-gated events, and digital marketplaces.

(2) 21 Shares: In Q1, the settlement amount on the Ethereum chain reached 3.01 trillion US dollars, which is close to the payment giant Visa

According to data disclosed by digital asset and encrypted ETP provider 21 Shares on social media recently, Ethereum is still the leader of the Layer 1 blockchain, currently accounting for 70% of the DeFi market share and 54% of the NFT market share.

In the first quarter of 2023, the transaction volume processed on the Ethereum chain is close to the payment giant Visa. Data show that the settlement amount of Ethereum reached 3.01 trillion U.S. dollars in the last quarter, while the settlement amount of Visa was 3.08 trillion U.S. dollars.

In addition, Ethereum network volatility has gradually decreased throughout its life cycle, falling to about 50% last quarter, which is much lower than PTON (95%) and Tesla (65%), indicating that ETH has gradually matured as an asset .

The merger dramatically changed Ethereum’s monetary policy, reducing daily issuance by more than 88%. Meanwhile, EIP-1559 has burned over 3.3 million ETH (worth $6 billion).

(3) Former CFTC Commissioner: Ethereum can be both a security and a commodity

Former CFTC Commissioner Dan Berkovitz stated that Ethereum could be both a security and a commodity, and legally it could fall under the jurisdiction of both the CFTC and the SEC regulators.

While the claim that ether is both a security and a commodity may confuse many, Berkovitz said that because the legal definitions of commodities and securities overlap, an asset could be classified as both. The confusion arises, he explained, because commodities are not purely physical commodities like "wheat" or "oats," and anything that falls under the umbrella of a "futures contract" can technically be defined as a commodity. This explains why the word "futures" is part of the name of the CFTC itself. (Cointelegraph)

(4) Data: The ETH balance of the centralized exchange reached the lowest point since July 2016

As of Thursday, 14.85% of ETH was held in centralized exchange wallets, the lowest level since July 2016, according to Glassnode data.

In comparison, during the bull market in 2021, the exchange balance accounted for about 25-26%. Typically, low exchange balances are a bullish sign, as it means there is a limited supply of ETH available for purchase.