- Ethereum lagged behind Bitcoin’s recent rally as interest in altcoins surged
- Recent Ethereum Improvement Proposals (EIP) and active developer discussions have tried to enhance Ethereum’s ecosystem
While Bitcoin approached the $30,000-level, many other cryptocurrencies saw a corresponding surge in interest. And yet, Ethereum [ETH], often seen as a digital silver to Bitcoin’s gold, saw relatively subdued growth over this period.
Nevertheless, Ethereum’s performance, or lack thereof in terms of price movement, didn’t reflect the ongoing developments within the Ethereum ecosystem.
Is your portfolio green? Check out the Ethereum Profit Calculator
New proposals
One noteworthy development is the latest Ethereum Improvement Proposal, commonly known as EIP, which aims to introduce asynchronous deposit and redemption flows. This proposal serves as an extension to the existing ERC-4626 tokenized vault standard. The ERC-4626 standard focuses on creating parameters for yield-bearing vaults, which are smart contract platforms executing strategies, providing rewards to token depositors.
EIP-7540, in particular, focuses on enabling asynchronous deposits and redemption flows, significantly improving processes for protocols dealing with real-world assets (RWAs), cross-chain lending, and liquid staking. In fact, this potential enhancement was highlighted in an interview with Asad Khan, a DeFi expert at Centrifuge.
Khan explained that EIP-7540 allows for more seamless interactions between users who deposit assets and the tokens they receive in return, creating a more user-friendly experience. This is especially relevant in areas such as RWAs, where different real-world assets can be tokenized and managed more efficiently.
Developments on the network continue to hike
Additionally, Ethereum’s developer community has remained highly active, demonstrating its commitment to the network’s evolution. During their 120th meeting on October 19, 2023, Ethereum developers discussed vital updates, including changes to Ethereum’s core consensus layer (CL). This illustrates the continuous efforts to refine Ethereum’s core functionality, ensuring its reliability and performance.
One specific issue addressed in this meeting pertained to data blob synchronization. Data blob synchronization involves efficiently propagating blocks of information across the Ethereum network. This synchronization is crucial for ensuring all participants have consistent access to the same data. Developers at the meeting scrutinized the impact of data blob synchronization on block latency.
For context, Block latency in Ethereum refers to the time it takes a new block of transactions to be received and processed by nodes in the network. Lower block latency is desirable as it improves the efficiency and responsiveness of the Ethereum blockchain.
Realistic or not, here’s ETH’s market cap in BTC’s terms
As Ethereum undergoes these developments and enhancements, questions remain about the potential impact on the price of ETH. At press time, it was trading at $1,609. Ethereum’s price can be influenced by both these technical developments and wider market sentiment.
At the same time, network growth showed signs of decline, suggesting that Ethereum may need to rekindle interest among new users to continue growing in the future.
Source: Santiment