Although the price of ETH has been relatively stagnant for the last few weeks, there are a lot of bullish things going on for Ethereum: ETH being moved off exchanges, increasing development activity for Ethereum, Uniswap v3 update, and more.
Let’s look into some top Ethereum (ETH) news from last week.
On-Chain Update
Image Source: CryptoQuant
According to CryptoQuant’s (an on-chain database) “ETH: All Exchanges Reserve” chart, there is roughly 19.6 million ETH in reserve. This means there are roughly 19.6 million ETH held in all the exchanges’ wallets. Also, looking at the chart, we can see that this has continuously been declining for the last six months. This comes as no surprise as we are in the midst of a massive bull run. Individuals/institutions are moving their ETH off exchanges and into some sort of cold storage wallet or maybe staking platform.
In conclusion, as you can see from the chart, a decline in ETH exchange reserves tends to usually coincide with an increase in the price of ETH (USD). This is bullish for the future ETH price as it seems that the overall sentiment towards ETH’s long-term price potential is looking bright. In other words, ETH holders are “optimistic,” and fewer holders are looking to sell their ETH.
Increasing Development Activity
According to Santiment (another on-chain database), Ethereum is now seeing its highest level of GitHub submission rate since the start of this year. Briefly, Github is a code hosting platform (usually for developers) where individuals can collaborate on projects together from anywhere in the world. All this means is that development activity is increasing again on the Ethereum blockchain.
🧑💻📈 #Ethereum is now back above $1,720. This coincides with an impressive increase in development activity for the #2 #crypo asset, which is now seeing its highest level of #github submission rate in 2021 (using Sanbase 3-hour timeframes for measurement). https://t.co/Cft3RGoTZy pic.twitter.com/tKCnHL9tvr
— Santiment (@santimentfeed) March 28, 2021
Santiment finds that when projects have an increasing (or consistently high) development rate, there tends to be an increase in the long-term price of the underlying asset. Santiment sees this as a sign that those linked closest to the project believe in the project and are optimistic for its future.
Lastly, taking a look at the chart above, Ethereum development activity last floated around this current development rate back on January 20th. As a result, the price of ETH went on to surge roughly 45% and top out at around $2,040 exactly a month later on February 20th. If history is any indication, maybe we see something similar for ETH’s price in April.
Image source: TradingView
Uniswap Announces v3 Update
Uniswap – a decentralized exchange (DEX) run on the Ethereum blockchain – announced that the highly anticipated v3 update is expected to launch on May 5th. The v3 update will focus on keeping the DEX the most flexible and efficient automated market maker (AMM) ever created.
Some features of the v3 update:
- Concentrated liquidity – control will now be given to liquidity providers in choosing what price ranges their capital is allocated to.
- Fee layout – unique pools will now be created with different fees.
- Multiple fee tiers – these tiers will enable liquidity providers to be properly compensated for engaging in different degrees of risk. There will be three tiers: .05%, .30%, and 1.00%.
- Customizable range orders, NFTs representing LP positions, and giving TWAP oracles upgrades.
Ethereum Scaling Solution “Optimism” Delays Public Mainnet Launch
On March 26th, Optimism announced that it has officially delayed the launch of its mainnet Ethereum scaling solution to July. In their blog post, Optimism stated that they were “overeager” to give everyone the speed and cost savings that Synthetix users have been enjoying. As a result, the expedited timeline took many projects by surprise because they did not provide adequate notice for the community to prepare for the launch.
Optimism is a Layer 2 (L2) scaling solution that allows for the Ethereum mainnet to be relieved from a large number of transactions it has to process. Optimism uses optimistic rollups in order to achieve lower fees and latency.
Litentry and Bondly Finance Partner to Verify NFT Owners by Linking Twitter and Ethereum Wallets
Litentry (a cross-chain identity aggregation protocol) has partnered with Bondly Finance for verification mechanisms with Ethereum accounts and Twitter accounts. Litentry plans to launch a new crypto social network product that will allow users to connect their Ethereum accounts with Twitter to get verified. Thus, with this integration, owners of NFTs will be able to claim ownership over their NFTs on Twitter through the linking of their digital assets.
ETH Price
At the time of publication, ETH price is currently $1,825.87, with a market cap of $210,525,044,205 and a 24-hour trading volume of $32,567,252,351.
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 being moved off exchanges and development activity not slowing down are two of the main Ethereum news items for last week.){kind=link}