Gas fee dropped, Ethereum changed
Part 1 In-depth topics of the week
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Part 1 In-depth topics of the week
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No.1 Gas fee returns to 1 year ago, and EIP-1559 will be implemented next month
A data worth noting this week is that the 7-day average of the median Ethereum Gas fee fell to a 13-month low of 19.955 Gwei, returning to the level of early 2020. Anthony Sassano, co-founder of EthHub, believes that the reasons for the sharp drop in gas fees are as follows:
1. Block Gas Limit increased
On April 22, the Gas Limit of the Ethereum block was increased from about 12.5 million Gwei to 15 million Gwei, an increase of about 20%. From the data point of view, the gas cost of ETH has been declining since April 20 (5/11 and 5/19 are extreme cases). An increase in supply leads to a decrease in costs.
Data source: https://ycharts.com/
2. The crypto market cools down
Since May 19, DEX trading volume has continued to decrease. The 24-hour trading volume on June 14 was only US$1.89 billion, a drop of 85% from the peak of US$11.9 billion on May 19.
3. Implementation of Layer 2 solutions
The maturity of the layer2 solution greatly improves the efficiency and eases the processing pressure of the main chain. The current (6/15) Polygon's total lock-up volume has reached 8.5 billion US dollars.
https://www.chainnews.com/articles/194297537642.htm
4. Adoption of Flashbots
At the beginning of April, Flashbots' MEV-Geth node solution for Ethereum MEV attracted widespread attention because of its support rate of more than 50% computing power, which reduced the peak gas fee of Ethereum by nearly 50% compared with the previous peak. Flashbots uses the off-chain auction model to share part of the MEV benefits with miners to alleviate the high gas fees brought by PGA on the chain.
Ethereum Gas fees fell back, but Ethereum and DeFi have undergone radical changes:
* The average daily settlement volume between ETH and stablecoins on the Ethereum chain exceeds $45 billion. In early 2020, that figure was less than $900 million.
* The total locked position of Ethereum DeFi exceeds 60 billion US dollars, and the value of this indicator at the beginning of January 2020 is about 700 million US dollars.
https://www.chainnews.com/articles/734973067015.htm
* DEXs have begun to "eat" the market share of centralized exchanges. Uniswap's transaction volume exceeded $1.1 billion, higher than Bitfinex, Bitflyer, and Bitstamp.
Next month (7/14), Ethereum's "London" hard fork will go live, followed by the official implementation of the proposal EIP 1559.
What impact will EIP-1559 have on Ethereum tokenomics?
As shown in the above diagram, when the network is congested, the base fee will increase to reach the 50% block size target, and this part of the base fee will be burned. Therefore, the amount of activity on the Ethereum network will be directly proportional to the amount of ETH burned, and the impact of EIP-1559 on the supply of ETH is heavily dependent on network activity. Some estimate that EIP 1559 will drastically reduce net issuance, making ETH deflationary.
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No.2 Curve: The Neglected DeFi Protocol
Curve's initial focus is on stablecoin exchange, and its innovation on the AMM curve enables low-slip transactions between price-stable assets (such as stablecoins).
https://mp.weixin.qq.com/s/50E5t1O4cxipnBpaao8ZxQ
Curve V2 was launched on June 10, providing a new form of curve, which provides solutions to a series of difficult problems such as impermanent loss, centralized liquidity, capital efficiency improvement, low slippage, and dynamic fees in general exchange. When Messari valued Curve, it called Curve the most overlooked DeFi protocol. https://mp.weixin.qq.com/s/_okf0CJvoUGcH8U-wfIxzg
Messari’s valuation analysis reviewed the development history of Curve, introduced its unique AMM curve, liquidity pool, token usage, token supply, and finally conducted a qualitative valuation analysis of Curve. Messari believes that CRV has a 108% upside potential.
(2) Its curve tail feature has obvious constant product curve fitting.
(2) Its curve tail feature has obvious constant product curve fitting.
So what problem does it solve:
(a) Inherited the advantages of Curve V1's ultra-low slippage and accumulated liquidity in the area near the "equilibrium point";
(b) By fitting between the constant product curve and the Curve V1 curve, and fitting to the constant product curve in the middle tail area of the curve, the advantage of the constant product curve responding quickly to changes in fluidity can be obtained, avoiding the depletion of pool fluidity, and flexible response Rapid market changes.
So what problem does it solve:
(a) Inherited the advantages of Curve V1's ultra-low slippage and accumulated liquidity in the area near the "equilibrium point";
Internal Oracle Repegging Mechanism
With the change of market exchange rate, the occurrence of exchange, and the impact of LP market-making behavior, the system coordinate point will gradually deviate from the original "equilibrium point". If the curve shape is not corrected, it will not only weaken the aggregation of liquidity, but also bring Come impermanent loss.
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1. Funding rate
No.3 Overseas top analysts teach you 5 major indicators to judge bulls and bears
Whenever there is a drastic change in the market, many indicator data will appear in the analysis article, such as funding rate, open interest, etc. What are the commonly used market leading indicators and what do they mean? Nansen's top analysts have summarized 5 major indicators, which are worth keeping in a small book."1. Funding rate"The funding rate tends to align with the general trend of the underlying asset, i.e. the funding rate tends to be positive and gets higher and higher as the price of the underlying asset rises. Since the interest rate for each band is fixed at 0.01%, 0.01% is often considered
2. Open interest (OI)
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2. Open interest (OI)
3. Stable currency capital flow
Open interest is the sum of all open trade positions (long and short) minus closed trades. The open interest indicator is important because it is a general indicator of capital inflows into the market. The amount of open interest increases when more capital flows in, and is therefore seen as an indicator of market sentiment.
If the price of an asset rises along with its open interest, it may indicate a bullish sentiment. Conversely, if prices are rising but open interest is falling, it could mean that sentiment is bearish and that the forces behind the price action have weakened.
https://debank.com/ranking/stablecoinIn the event of a market sell-off, investors expect the value of their cryptocurrency investments to decline and they may turn to stablecoins as a safe haven, so it is also useful to look at general trends in stablecoin volume and activity. For example, daily on-chain transaction volumes for stablecoins were on an upward trend ahead of the May 19 crash, which was followed by a spike on May 19.
4. Exchange capital flow
On the other hand, a rapidly growing stablecoin supply (measured by market capitalization) relative to the total cryptocurrency market capitalization could be a signal of a bottom after a market decline, as it could mean that there is ample ammunition that can easily flow back into crypto assets.
Nansen.ai4. Exchange capital flow
5. Fear and Greed Index
(paid product)"extreme fear"5. Fear and Greed Index"Market participants tend to be overly greedy (FOMO) when prices are excited to go up, and they also tend to be overly fearful when prices are down. The Crypto Fear and Greed Index ranges from 0-100, with 0 representing"。
alternative.me
extreme fearYuffie • ユフィ
extremely greedy
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sudden and progressive
Part 2 Direct attack: Burst｜Policy｜Market
PeckShield "Pai Shield" warning shows that PantySwap has a risk of running away, and users are advised to invest cautiously.
Regulation and Policy
DeFi asset management platform Zapper suspended the fund withdrawal services of SushiSwap and Uniswap due to a vulnerability.
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Regulation and Policy
On June 8, the U.S. Department of Justice confiscated 63.7 bitcoins that hackers extorted from Colonial Pipeline.
Texas Governor Greg Abbott tweeted that he has signed a bill on cryptocurrencies, placing cryptocurrencies under the Uniform Commercial Code of Texas as a secure transaction.
Texas Department of Banking Approves State Chartered Banks to Custody Crypto Assets.
European Central Bank President Lagarde: The European Central Bank will decide in mid-July to advance the exploration phase of the digital euro.
El Salvador's Legislative Assembly has officially voted to make bitcoin legal tender.
India is said to be considering crypto regulation rather than a ban.
Quotes and Trading
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【Bitcoin】
Quotes and Trading
The annual rate of core CPI in the United States, which was not adjusted seasonally in May, was 3.8%, a record high since 1992.
【Bitcoin】
On June 14, Elon Musk tweeted that once he confirmed that most bitcoin miners were using clean energy, his electric car company would re-accept bitcoin payments. Affected by this news, the price of bitcoin rose to $39,000 for a short time .
On June 14, MicroStrategy completed the issuance of $500 million in senior notes, and MicroStrategy will use the net proceeds from the sale of the notes to purchase additional bitcoins. During the same period, MicroStrategy disclosed in a document submitted to the US Securities and Exchange Commission (SEC) that it may sell $1 billion in stocks to buy Bitcoin.
On June 11, Blockchain data showed that the No. 4 Bitcoin whale increased its holdings by 3,720 BTC, worth about $138 million. The address currently holds 112,593.6 Bitcoins.
ARK Fund bought 56,238 shares of Grayscale Bitcoin Trust on June 9.
On June 7, the Glassnode chart showed that Bitcoin active addresses hit a new low this year.
【Exchange】
British asset manager Ruffer sold its bitcoin position on June 6, making a profit of $1.1 billion from a $600 million investment.
The circulation of WBTC has reached nearly 190,000 pieces, accounting for 1% of the current BTC circulation.
【Exchange】
Cryptocurrency exchange Kraken said it will no longer offer margin trading to U.S. customers who do not meet certain requirements.
【other】
Coinbase has partnered with a US pension plan 401k service provider to offer cryptocurrency investment options.
Coinbase will provide users in more states in the United States with the service of collateralizing Bitcoin for cash loans.
【other】
The President of the Republic of El Salvador and Musk changed their Twitter profile pictures to images of Retinoid eyes.
Keywords such as Binance, Huobi, and OKEx were blocked by Baidu, Weibo, and Sogou.
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Investment and Financing
【DeFi】
Part 3 Cornerstone: Investment and Financing｜Project
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Investment and Financing
Solana's ecological lending agreement Jet Protocol has completed a $4.8 million seed round of financing.
Divergence, a decentralized volatility derivatives platform, has raised $2.9 million in financing.
【NFT】
The new stablecoin ecosystem Mars Ecosystem has received $2 million in financing.
The non-custodial investment application SmartDeFi has completed a financing of US$1 million and will be officially launched in the second quarter.
The cross-chain protocol KList announced the completion of a million-dollar seed round of financing.
Gaming startup Mythical Games has raised $75 million in Series B funding and will release its first NFT airdrop next week.
Snickerdoodle Labs, an NFT company focused on data privacy, has completed a $2.3 million seed round of financing.
The cross-chain NFT protocol DNFT has completed a million dollar angel round of financing.
【Ecology】
Solana Labs completed $314 million in financing, led by a16z and Polychain Capital. Solana Labs plans to establish an incubator studio to accelerate the development of projects on the Solana blockchain and a venture capital arm for the Solana ecosystem.
Arrington Capital will launch a $100 million venture capital fund to support the Algorand ecosystem.
Payments company Square has committed $25 million to the Square Bitcoin Endowment Fund.
Polygon, 0x invested $10.5 million to grow the DeFi and 0x ecosystem on Polygon.
【Infrastructure and /tools/platforms】
Ledger, an encrypted hardware wallet, completed a $380 million Series C round of financing led by 10T Fund, a digital asset fund founded by Dan Tapiero.
Chipper Cash, an African fintech startup, has raised $100 million in Series C funding.
Encrypted investment platform Kikitrade received a strategic investment of US$4 million from British hedge fund investor Alan Howard.
Project Progress
【Ethereum expansion and related】
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Project Progress
【Ethereum expansion and related】
The Ethereum London upgrade has confirmed all the included EIPs, including 5 EIPs including EIP-1559, and the mainnet is still scheduled to be upgraded on July 14.
Hermez, the Ethereum Layer 2 scaling solution, will launch a community reward program on June 21.
【New public chain】
On June 5, Uniswap v3 has now been deployed to Arbitrum, the Ethereum scaling network.
The Graph has announced an integration with Arbitrum to provide an open data index on Arbitrum.
【New public chain】
【DeFi】
The first smart contract on Cardano's public testnet Alonzo has successfully run.
At 20:00 on June 15th, Kusama will open the first parachain card slot auction.
The public chain project Harmony launched a community DAO.
Curve Finance V2 has been officially launched. This version uses new algorithms to provide trading functions for common assets (such as ETH/WBTC trading pairs).
Liquidity aggregator 1inch has released a composable limit order protocol. The limit order function enables users to buy and sell encrypted assets at a specific price. The feature will enable users to buy and sell assets on Ethereum, BSC, and Polygon at specific price targets.
The Yearn Finance community put forward a proposal to develop a stable currency project based on Keep3r, and the proposal is called STABLE.
【NFT】
The Polkadot DeFi platform Acala Pioneer Network Karura has opened the parallel chain crowd lending function.
The Uniswap V3 fork project on BSC may violate the software agreement, but the Uniswap team has not yet responded (June 7)
Binance-backed developer platform Binance X has announced the official launch of its non-fungible token (NFT) platform, recommended by Binance.
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Part 4 Voices: Academics, Institutions and Media｜KOL
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Government/Institution/Media
Deutsche Bank issued a serious inflation warning in the United States.
BofA Securities released a report: Central banks in emerging markets are adopting CBDCs because they can significantly improve the efficiency of payment systems. In countries where dollarization rates are currently low, the adoption of CBDC will not have much impact. But in countries with higher rates of dollarization, easier access will add to this process, a phenomenon known as "digital dollarization," where central banks may more easily use digital currencies as a stimulus, which also brings higher inflation and risk of rising asset prices. Emerging market banks are also at risk of disintermediation, which could lead to greater volatility in their banking systems.
On June 9, Forbes released the top 50 fintech list, including 8 blockchain companies including Paxos (the issuer of the stablecoin PAX) and Kraken
The World Economic Forum tweeted: Cryptocurrency can achieve global financial inclusion.
The World Economic Forum (WEF) released a white paper on DeFi regulation
U.S. Treasury Secretary: U.S. framework is not "up to the task" of regulating cryptocurrencies.
The Bank of England simulated the introduction of digital currency, saying that large-scale cash redistribution may affect the currency market.
President of El Salvador: Instructs state-owned geothermal power company to study bitcoin mining facilities using renewable energy from volcanoes.
Business executives
KOL
Twitter CEO Jack Dorsey tweeted: Nigerian flag shaking hands with Bitcoin. Or it is intended to show that Nigeria embraces Bitcoin.
Twitter CEO Jack Dorsey tweeted: We all speak the same language, and that is Bitcoin.
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