Overview
The Ethereum ecosystem witnessed significant developments last week, highlighted by the launch of the ETH 2.0 multi-client testnet "Witti" and growing institutional interest in Ethereum derivatives.
Key Highlights
1. ETH 2.0 Progress
- Witti Testnet Launch: Ethereum’s public multi-client testnet "Witti" went live, supporting ETH 2.0 clients. This marks a critical step toward the full rollout of Ethereum’s Proof-of-Stake (PoS) upgrade.
- Scarcity Narrative: Analysts project ETH 2.0 could reduce Ethereum’s inflation rate to 2%, potentially making ETH scarcer than gold (S2F ratio of ~57 by 2022 vs. gold’s 60).
2. Market Performance
- Price Action: ETH surged 13.6% weekly, peaking near $250. Current support levels: $210–$225; resistance at $250 and $280.
- Deribit Milestone: Ethereum options open interest on Deribit hit a record $94 million, signaling heightened institutional activity.
3. On-Chain Metrics
- Whale Activity: Large transfers (>50K ETH) rose 50%, with notable moves including 128K ETH deposited into Gemini.
- Non-Zero Addresses: Ethereum addresses holding ETH surpassed 40 million, reflecting expanding adoption.
Ecosystem Updates
1. DeFi & DApps
- DEX Volume: Ethereum-based DEXs processed $104M weekly, though trading activity dipped 17.2%.
- Compound’s COMP: Governance token distribution begins mid-June, decentralizing protocol control.
2. Mining & Fees
- Hash Rate: Increased 1.15% to 184.7 TH/s, with average daily miner rewards up 0.33%.
- Gas Fees: Network congestion drove transaction costs higher.
Institutional Insights
- Address Concentration: Top 10K ETH wallets hold 56.7% of supply, sparking debates about decentralization.
- Privacy Concerns: Research suggests Ethereum’s account model reduces privacy vs. Bitcoin’s UTXO system.
FAQ Section
Q: How does ETH 2.0 impact inflation?
A: PoS reduces ETH issuance, potentially lowering inflation to 2%, enhancing scarcity.
Q: What’s driving Deribit’s ETH options surge?
A: Institutional demand for hedging and speculation amid ETH’s price volatility.
Q: Are DEXs losing traction?
A: Temporary dip; long-term growth persists as DeFi matures.
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