Ethereum Price Crashes 13%; Co-founder Vitalik Buterin Sees ‘Increased Network Privacy’ Coming
As the Bitcoin price took a hit, so did the price of altcoins. Ethereum is down about 13% trading at $216 while managing the trading volume of $487 million on the top ten exchanges with real volume.
“ETH on the daily level around $228-229. It looks very bad. Losing it and I'd be aiming for $211 and probably $195 mainly,” said trader Crypto Michael.
Interestingly, crypto exchanges hold 31 million ETH in comparison to just under less than 3 million ETH locked in DeFi. The vast majority of these ETH held in exchange wallets is in centralized exchanges, with Coinbase, Huobi, Bitfinex, Binance, and Kraken holding the most.
Binance particularly hit its first 1 million ETH right at the crypto peak of Jan. 2018. Because Binance usually provides just one address per retail customer, the exchange saw the “largest influx” of customers around Jan. 2018. This means, the growth Binance saw in the last 18 months has likely been from the existing customers and non-Ethereum crypto assets, points out Alex Svanevik, co-founder at D5.
Network activity growth
The amount of unique ETH transferred on the network improved in February, indicating an uptick in total value transferred on the network, finds Maksim Balashevich, founder of Sentiment.
Meanwhile, a total of $3.39 billion worth of transactions took place on Ethereum in January but in Feb it remained below this number.
The total amount of gas used on the Ethereum took a sudden and significant dip last month following the drop in price. As such, the cumulative fees needed to successfully conduct a transaction on a contract on the network have been nearly at 6 months low.
However, the difference in token circulation in Feb. vs. Jan., there was a “modest” 1.2% increase that “should serve as a confidence booster to those expecting network activity growth, as it shows unique coins continuing to move between addresses.” Despite ETH’s price performance, the token circulation maintained its pace up close to 6-months high levels.
A few days back, the Ethereum All Core devs had a call to decide on ProgPow that lasted 3 hours. Kristy Leigh-Minehan, one of ProgPow’s creators pointed out how it is easy to fix, follows a fast approach to tackle the issue, and is only exploitable under specialized scenarios.
The opponents, however, pointed out the vulnerabilities that highlight the inherent risk of changing the mining algorithm.
The potential of a sudden drop in the Ethereum hash rate was also discussed. Regardless of the algorithm active, GPUs with RAM of 4 Gigabytes and E3 miners of Bitmain (which makes for an estimated 40% of Ethereum’s hash rate) will be affected around April.
“With ProgPow it’s not clear to me why ASIC resistance would be a good thing,” and as such the change should not be made, argued anti-ProgPow Gnosis Co-founder Martin Köppelmann.
“It's a bunch of profit-seeking miners lobbying the Core Dev Political Committee to get what they want. Full stop,” he attacked the other side.
But Ethereum 2.0 being at least two years away still and 1.0 chain needs to be maintained functional. Ethereum founder Vitalik Buterin who was also present at the call did not share his views on the ProgPow.
However, in another event ETHLondonUK, Buterin shared that sharding will scale the network “somewhere between a factor of a hundred and a few hundred.” The next year, Buterin also sees Ethereum ecosystem having “increased privacy.”
“There's definitely an ever-growing realization of the need to not have all of your activity be publicly linkable to all of your other activity,” said Buterin.