Looking back at 2021: Ethereum expansion and new disclosures

ETH chain data review

As of December 18, Ethereum prices have risen 4.38 times from $ 736 at the start of the year to $ 3,960, while BTC is only up 63% year-on-year. 3 Ethereum ETFs were approved for listing at the end of April this year (all: Target Ether ETFs developed by Target Industry, CI Galaxy Ethereum ETF launched by CI Global Investment) Managed, Evolve Ether ETF has been launched by Evolve Capital Group), Ethereum It In old-fashioned eyes, has gradually moved from imitation to monetary value.

Source : https://www.coingecko.com/en/coins/ethereum

As costs increased, so did the incomes of miners. On May 15, miners' daily earnings rose to a record high ($ 130 million) before falling back to at least $ 32 million after the economic downturn and China's restricted economic slowdown. Then, using the electronic machine in Ethereum, the miners' income did not return in May (as shown in the figure, the blocking rewards gradually increased, but the monetary income of the income reduced).

Source : https://www.theblockcrypto.com/data/on-chain-metrics/ethereum

Despite the increase, the price of Ethereum at the end of 2021 is still only 2.6 times the high of 2017 ($ 1,448). However, the Ethereum ecosystem now reaches 150 billion dollars, of which 130 billion will be kept in 2021. Compared to the start of the year, DeFi's TVL has increased sevenfold this year. However, Ethereum's share in DeFi fell from 97% to 63% at the start of the year. ...

Source : https://defilama.com/chain/Ethereum

Due to its heavy consumption, Ethereum is expected to continue pushing up oil prices in 2021. Before the market fell in May, average oil prices were generally above 100 gwei, falling below 30 gwei during the period. economic downturn and then increased further. as the economy recovers. However, the volatility of the fuel used in the second half is much lower than in the first half, mainly due to the combustion mechanism of EIP-1559. Regarding the impact of the EIP-1559 on the network, Wu concluded that Real had done the test before it was used and that it would not reduce fuel costs, but would reduce and increase the estimates.

Source : https://studio.glassnode.com/metrics?a=ETH&category=&ema=0&m=fees.GasPriceMedian&mAvg=7&mMedian=0&s=1577505170&u=1639872000&zoom=

On August 5, Ethereum began its renovation in London at an altitude of 12,965,000, on average burning nearly 9,000 Ethereum per day. According to Wu's estimate in the last article), the annual fire is nearly 2 million. It is in the bear market and the trading volume is low. Calculated in a bull market, the annual fire burns over 3 million. All in all, the real number may be the golden mean.

Source : https://www.theblockcrypto.com/data/on-chain-metrics/ethereum

Currently, Ethereum's daily average is around 13,000, 119 million units. The annual rate of increase is approximately 4.1%. The most powerful electronic money currently is Bitcoin inflation (1.7%). When Ethereum enters version 2.0, the price increase can turn negative, causing a slowdown. According to the Ethereum business model, the annual production of Ethereum 2.0 increases as product revenues increase, and when loans exceed 100 million, the annual production year stabilizes at 1.71%. 5600. Ethereum 2.0 can still support its current volume, reaching 1% deflation per year.

Source : https://docs.ethhub.io/ethereum-basics/monetary-policy/

As of December 19, Ethereum 2.0's beacon address was 8.71 million Ether, or roughly $ 34.4 billion, which is only 7.3% of all announcements, and actual profits are estimated at around 5.4%. As can be seen in the photo, the development of the Ethereum 2.0 staking volume has been slow this year. The delay of the Ethereum update process is not affected.

Source : https://dune.xyz/hagaetc/eth2-0-deposits

ETH 2.0 roadmap

At the World Blockchain conference in Hangzhou in July last year, Ethereum co-founder Vitalik Buterin published an article titled "Ethereum 2.0 will be released after entry." Speech. Vitalik said that the integration of Ethereum 1.0 and Ethereum 2.0 will take more than six months. At the initial stage of integration (phase 1), Ethereum has made some changes. Ideal state. It can perform 100 000 transactions per second In intermediate and advanced stages (phase 2), Ethereum tends to improve the six-level approval algorithm to follow simple rules when using cryptographic technologies such as zero and anti authentication. - computing quantum. In the future, Ethereum will be decentralized by layer 1 and layer 2 will bring a lot of new things.

Ethereum 2.0 phase 1 is expected to begin in the second half of 2022, and no later than the third quarter of 2022, as the integration must be completed before the sharding. Previous reviews have suggested the seal shouldn't be any earlier than the onset of the bombing problem, and with the release of the Arrow Glacier, the hard bomb has obviously been postponed until June of next year, so basically the timing. of the meeting can be decided as follows. : It may be there. third quarter of next year.

The current development of Ethereum is just the beginning of the development process. Vitalik posted an article on his own website in early December that the future Ethereum blockchain should be the foundation, but blockchain claims don't have to be reliable and have a huge impact. Layer 2 has no concept of blocks, and you can tell by Arbitrum or Optimism browsers that the space in Layer 2 is market compatible, not block compatible. Vitalik's recurrence during this time appears to have focused on the Ethereum-centric roadmap in the past, leading to speculation that it is interfering with recent rumors, such as the conflict between the Ethereum team and the team 2.

layer 2

Given the current rapid growth of Ethereum 2.0, there is a feeling that it will be difficult for Ethereum to start sharding next year, but that doesn't mean Ethereum won't be able to measure next year. Alternatively, as the Rollup technology developed, the expectation of a short-term expansion of Ethereum was closed in Layer 2 using either OP-rollup or ZK-rollup. For the promotion and distribution of Phase 2, it is recommended that you read the lengthy review or similar additional description posted by Vitalik on his personal website. To determine this, the main layer 2 technology can distinguish the following terms.

Source : https://twitter.com/VitalikButerin

Plasma is the first idea, the simplest of these reasons, and is slowly being abandoned due to various shortcomings. Matic used this process early, not being reborn for a long time and not being reborn until he renamed it Polygon and changed the path to Layer2 aggregator.

Rollups sent to the chain, but the data is still in the main chain. Compared to the other two-dragon continued continuing custom, rollups are the same as running EVM, so you can immigration etheriquat with a new number. ZK Rollup and Op-rollups often different from proof of species. Op-rollup is the same as the blood. The following data is used in fraud: the data recording the chain is important leading to a chain. If there is one of the, the new merken is not the wrong thing to find the new merkggen. Although the batch counts the invalid benefit, will cause inconvenience in the main chain by sending changes to all after delivery. Therefore, it will take a week waiting for a week waiting for a week. Of course, some third-strand brid-strand ZK Rollup can be used to solve the problem above. Each returned been recognized by agreement Rollup for scanning and certificate (zk-snark) (zk-snark) (zk-snark) (zk-snark) (zk-snark) (zk -Snark) Verification and that these changes can be proved to the contract roll in the start. As a personal identifier, the operator cleared the accuracy of the operator to send the wrong state or delivered.

In practice, the ZK cumulation is more detailed, but technically more difficult. The OP cumulation is the opposite. This is why the current TVL for the cumulative OP is more than $ 3.2 billion, while the cumulative ZK is less than $ 800 million. But in the long term, the ZK rollup performs better. According to Messari's 2021 annual report, by 2023 OP aggregates will represent less than 50% of total phase 2 spend (Layer 1 will represent less than 20% of total usage).

Source : https://l2beat.com/

Regarding the internal stroke between ZK rollup and OP rollup, depth and description are recommended. Set of 2 notes and "The best comparison for today zkRollups"

Regarding layer 2, polygons cannot move. Polygon began to recover after the inventory collapse in May. The average daily address skyrocketed and peaked in September, on Ethereum.

Source : https://pro.nansen.ai/multichain/polygone

Polygon is looking to integrate solutions, but StarkWare co-founder Uri Kolodny argues that Polygon is an integration, not a phase 2, which means Polygon security does not exist in Ethereum. In the real world, Polygon does not support the Ethereum scale (obviously Polygon measures itself), it looks like BSC and is completely independent from the Ethereum clone based on the PoS mechanism, but uses the Geth counter to undo approval. . Reconnect to Ethereum using code, gas cap gain, and multisig.

But is this security risk important to you? Haseeb Qureshi has a good description of what happened in "I'm Worried Nobody Cares About Rollups". “The expanding rollup story makes sense to everyone. The story of Ethereum's expansion needs to be measured. Traders have drawn a line at a price. How Rollup will push ETH up at $ 10,000. Users using Polygon Farm AAVE -MATIC look crazy. As I got involved in horse racing, I was also curiously nodded at the explanation of Rollups' comments. "Now , the public channel is working. BSC in the front, Polygon in the middle and Polygon in the second. There is the Avalanche. It looks like you just have to complete the EVM first. Then a wave of money went up for the project on Ethereum and eventually got a faster and cheaper Rollup. By comparison, Rollup doesn't even achieve EVM compatibility.

In the article, the authors mentioned two ways to get users to ditch sidechains and vote for racks. The first is that the non-stackable side chains have failed, resulting in a significant risk of "money loss" as well as "unsynchronized node" issues that often occur with BSC. It may make people more aware of the importance of classification, but it is not. The second way is to Rollup doing things other sidechains can't. Contract protection, proof against MEV and other features.

Likewise, a month after Haseeb Qureshi announced this article, Polygon announced that it would invest $ 1 billion in ZK rollup operations. Since then, two purchases worth up to $ 650 million have been reported. Hermez and Mir. Polygon Miden, an Ethereum-enabled STARK-based digest, and Polygon Nightfall, a privacy-focused digest developed in collaboration with Ernst & Young, recently announced. Unlike BSC or Avalanche, which only replicates the ecology of Ethereum, Polygon's imitation of Ethereum is similar.

Currently, Polygon's oil value is less than 0.01% of Ethereum's (Ethereum cannot reduce its oil value to that level even if it completes sharding and rollup), and the speed is equivalent to BSC. If ZK-SNARK can be used, it will be compatible with EVM the most powerful audience in the chain to compete for the second (self-view only).

Solana

In 2021, Solana's growth is the highest of any public channel, and TVL is fifth after Ethereum and BSC. And Solana's degree of decentralization is just behind Ethereum (public channel running), and as of December 19, Solana's pledge count was 1,327, and users were being reached from Europe and the US. United.

Source : https://solanabeach.io/

The rise of Solana highlights the underlying reasons for the emergence of new channels to audiences this year. First of all, Ethereum's stagnation gives its friends a chance to catch up. BSC was the first to organize this event. The process is as described above, published only and all subsequent EVM public extensions like this. daily life. However, Solana takes a different approach, going for a different EVM, having a different concept from Ethereum and using the Proof of Time (PoH) approval. See "Solana Summer" for special features.

The second reason is that competition in public channels can be caused by ecology rather than technology. This is not to say that technology is not important, but it is true that it is worth considering some of the public perceptions of the old chain of ideas entangled in technology but does not improve the value of the currency. In order to be successful in the ecosystem, the Solana team and vendors have adopted a series of incentives to encourage users to learn more about the platform, such as information on mining capabilities, provided that clients generate grants, organize hackathons, donate, etc. In all of these examples the public channel doesn't require a lot of intelligence, all it needs is money and the last thing Solana does is have money. This is not to say that Solana has low technological capacity, but compared to other public channels, the first thing that comes to mind when thinking of design is Solana.

polka sur

On December 17, the first launch of Polkadot five parachains began and ended in partnership with the network, followed by Acala, Moonbeam, Astar, Parallel Finance and Clover. The next Polkadot auction placement will start at height 8263710 (approximately December 23, 2021), with a total of six bids. ).

The key events of Polkadot in 2021 can be included in the two sentences above. Nothing flashy and upgrades are always slow, but when it comes to which channel can compete with Ethereum, you can't ignore it. In particular, with the advent of new public channels, the image of the “multi-channel channel” described by Gavin Wood has gradually established itself. If you want to understand the Polkadot series from Blue Fox Notes, I won't go into the details of this technology here because there is no endless change like Ethereum.

from

Terra is the most public extension in my opinion. First of all, it is the first public channel created under the Stabilitycoin protocol. Second, it is the public channels that are most often connected to the traditional economy. In the end, it is the most harmonious link in the public chain with the public authorities. Regarding a stable business, Mint Venture explained in a research paper.

As of December 19, Terra's gauge size was $ 15.2 billion, third behind Ethereum and BSC. If you look at the top 10 public channels, TVL is the only public channel that has never seen a rise, fall or weakness.

Source : https://defilama.com/chain/

Terra Terra has made a lot of money this year. Last January, Terra received $ 25 million in funding, primarily for the mirror property contract and the anchor bond. In March, Anchor finalized a $ 20 million funding round and released the V1 version. In July, Terra announced a $ 150 million green fund to support green use. The team is focused on improving the latest version of the Mainnet, Columbus-5, which is a critical upgrade to the Mainnet, which includes key issues such as financial distribution and damage.

There are currently three major challenges facing Terra:

First, Terra's Stability Coin, UST, is a volatile currency whose value depends on Luna's market value for rivets. If Luna goes down, UST will have to pay a decoupling charge. From May 19 to 25, the UST experienced a negative rate of around 10% for the second time in 2-3 days.

The second is what to do care in another country. Terra's second biggest contract, Mirror, created a certain legacy in the United States. Users are free to perform agricultural and long-term and short-term activities, which is not regulated by the United States SEC. In March of this year, the Thai financial institution announced that it would violate the illegality of Thailand's Fixed Digital Securities (THT).

The third major problem is that the degree of decentralization is insufficient. Now, most of the nodes are concentrated in Korea and controlled by chaebols, and data transparency is low.

enhancement needs of the public channel

Unlike the DeFi process, where the cost can be calculated from PE, PS and other compared revenues, public measurement is always difficult. The biggest problem is that it is difficult for us to calculate the cost of the network caught by the tokens in the chain. TaschaLabs is worth considering this idea. If you compare public channels to a country, the token will be the national currency. According to the financial equation: M × V = P × Y (representing income, turnover, cost and real GDP), the value of the token is proportional to the GDP of the public chain and of the issued token and around value. Of course, how to measure public chain GDP and token value requires further analysis of chain data, but a simple diagram analysis will give you a rough idea of ​​the structure. The cost of public channels has a positive impact. Trends in the number of active addresses or the number of new addresses.

However, the analysis now widely used in the blockchain arena remains just a simple example. For example, people like to compare Bitcoin to digital gold or M0 USD, and based on this theory, you can estimate the target price by dividing the market price or the price of M0 gold by the number of Bitcoins. However, this is only the target price, and it is not known when the target price will be reached. Likewise, people have started to compare public channels to businesses online, and the best channels are still similar to FAMGA. The market capitalization of these five companies is approximately $ 10,000 billion, with an average of $ 2,000 billion. Ethereum's current market cap is around $ 450 billion, which is three to four times the average FAMGA market cap. . Considering the changes Ethereum 2.0 will make to the network, this increase is not an exaggeration.

The question of which of the other public chains can become FAMGA in the blockchain space is left for the moment.

recharge

In the previous article, I mentioned the ecology of cracks in the chain, here are the details. In addition to the further increase in stable performance of the DeFi track this year, there are three major changes this year: the launch of the V3 AMM, the birth of the permanent option and the rise of DeFi 2.0. The rest of the DeFi policy started last year. As of December 19, DeFi's total closing value was $ 236.6 billion, and the top 10 civic groups were Ethereum (63%), BSC (7%), Terra (6%), Avalanche (5%) , Solana (5%)), Tron (2%), Polygon (2%), Fantom (2%), Arbitrum (1%), and Cronos (1%).

Uniswap's share of where DEX operates has grown from 48% at the start of the year to 78%, and the swap is the start of V3. Regarding the introduction of V3, we recommend that you read the reviews of the legitimate site, and those interested in the mathematical model can also read this long article.

Source : https://www.theblockcrypto.com/data/decentralized-finance/dex-non-custodial

Among the derivatives running DEX, future sources are all derived from dYdX, and the current volume of options is still minimal. However, the current choice models developed by SBF in May could have an impact on the options industry. The market volume by volume of dYdX increased after the mining industry, reaching a daily high of $ 9.1 billion, but the volume by volume stopped growing at the time3. There is only one day left until the end of period 4, but the total lot volume is only $ 51.5 billion, far more than the $ 92 billion in epoch 2 and then $ 85.5 billion. After raising $ 26.8 on September 30, DYDX had a net worth of just $ 7.8 on December 19.

Source : https://www.theblockcrypto.com/data/decentralized-finance/dex-non-custodial

Some DeFi executives gradually discovered that the "sale" of Standard 1.0 was not profitable and began to develop "market-based services" aimed at "leasing liquidity" in other contracts, and OlympusDAO has become a new research. Regarding OlympusDAO, Wu can refer to previous Real reviews.

In the industry since August, DeFi Tracker has little experience with collaborations. As the market fell on December 4, the value of the DeFi 1.0 protocol token dropped to its lowest level in 519 times. But this is not surprising. The appearance of hot spots may cause the bubble to expand, following a puncture warning. Only those who survive the turmoil will have long-term success, just like GameFi today. a thing. But no matter how the process of running hotspots changes, the public channel is always the easiest setup.