The currency circle in June, like a quiet lion, hides its clues in the process of being calm. This can be seen from the gas fee of Ethereum. The gas fee is basically stable at around 10 Gwei, and even at a low point It has reached 3 Gwei, which shows that the fear index in the market is increasing. People don’t know whether this round of bull market is still going on or has entered the bear market stage. Some people are selling, some are fleeing, some are People are waiting, and others are continuing to explore.
From the perspective of news, the biggest news this month is:
1. On June 18, Sichuan started the virtual currency mining and withdrawal work, and it was completely shut down at 0:00 on June 20. At that time, the average computing power of the entire Bitcoin network fell by about 43% from the high point of 181E, falling to 103.17 e.
2. On June 21, a number of banks issued a statement on "Prohibiting the Use of Our Bank's Services for Bitcoin and Other Virtual Currency Transactions".
These two news directly led to the panic of retail investors in the cryptocurrency market and the fleeing of miners. However, after the shutdown of Chinese miners, they need to consider whether to resell the mining machines or deploy mining overseas at high cost. Due to the epidemic , Policy and cost reasons, it is not easy for domestic miners to go overseas, and many places have also started to take action on the resource consumption of Bitcoin, looking for breakthroughs in energy consumption and production capacity. A few days ago, Musk and Michael Saylor led the formation of the Bitcoin Mining Committee with a number of major North American Bitcoin mining companies, agreeing to increase the transparency of energy use on a global scale and accelerate sustainable development plans.
At the same time, Terra Pool, Neptune Digital Assets and Link Global also announced in the same month that they will launch a bitcoin mining pool powered by solar, wind and natural gas in Canada.
If it is said that environmental protection issues have always been the resistance to the promotion of Bitcoin to the mainstream society, then these adjustments have played a certain role in promoting the sustainable development of the Bitcoin mining industry and the mainstreaming of Bitcoin.
From the perspective of the market environment, the confirmed Biki Exchange has announced that it will stop providing OTC, contracts, leverage and other functions to users in mainland China from July. Huobi has also closed the bulk OTC channel and updated it on June 26. The user agreement indicates that the contract transaction service will be stopped for users in mainland China.
There are indications that they are just the beginning, and the closure of OTC and contract functions for centralized exchanges may continue, so it is necessary to pay close attention to cryptocurrency-related news.
This issue also has different ways to combat it in the United States. Many states in the United States have added cryptocurrency tax policies, and are expelling unlicensed exchanges, etc., and are moving towards the legalization of cryptocurrency. USDC’s news released today “US dollar stablecoin USDC plans to expand to 8 to 10 other blockchains such as Kava and Polkadot” can be seen. From this, it can be concluded that the United States has huge ambitions in the matter of globalizing the dollar.
According to data provided by the encryption analysis platform IntoTheBlock, as of June 29, about 86% of ETH holders are in a state of profit.
Next, I will take you to review the subdivisions of this month.
From the perspective of the DeFi sector, on June 5, Uniswap v3 has been deployed to the Ethereum expansion network Arbitrum. The decline in gas fees also brought about a cooling-off period for transactions. The transaction volume of DEX has continued to decline this month. The popularity of the Layer 2 sector has not fully driven everyone, and the number of people watching is significantly more. After the retreat, everyone was also at a loss, because the exaggerated increase was only fleeting.
This month, Matter Labs evaluated the performance of L2 projects from the following four categories and detailed indicators:
Security: Online assumptions (for example: watchtowers), massive exit assumptions, Custody, disadvantages of hot wallet keys, vulnerability to cryptocurrency economic attacks, and cryptographic principles.
Performance/economics: maximum throughput, capital utilization efficiency, cost of opening new accounts.
Usability: withdrawal time, time to achieve subjective finality, client verifiability of subjective finality, instant transaction confirmation.
Others: smart contracts, EVM bytecode portability, native privacy support.
There are more and more applications around the NFT sector, and they are becoming more and more subdivided, and large IPs are gradually entering the market. Binance NFT, which has accumulated a lot of money, was officially launched on June 24, and a blind box was launched simultaneously. For multiple sectors such as art, sports, entertainment, games, collectibles, public welfare, etc., this has promoted the further division of the market, and at the same time brought huge traffic to the Binance platform.
One piece of news that needs attention is that on June 29, Republic Realm, a digital real estate NFT investment fund, is transforming the Decentraland virtual land it recently acquired for $913,000 into a virtual shopping area. The shopping area is named Metajuku, after Harajuku, a city in Japan known for its street fashion. This will be the first time that the concept of a business district will appear in the NFT sector, breaking people's previous view that virtual land only builds pavilions. It is believed that the combination of NFT and Metaverse will be closer in the future.
In the part of the NFT standard, it is possible to form a tripartite situation of ETH, WAX, and FLOW in the future, but it depends on the development of the other two public chains.
The Kusama card slot auction that everyone has been looking forward to has officially started on June 15th. Without any surprises, Acala Pioneer Network Karura became the first project to auction the Kusama parachain slot, and other projects are also bidding for their own slots. The auction is working hard, but there is still a long way to go before the Polkadot ecology is put into use. The Substrate framework is the most widely used.
There are two hot spots this month that are worthy of our attention, one is Metaverse and the other is Layer 2. In the currency circle that has always been calm, some projects represented by these two concepts have made people see some landing applications and solutions in the blockchain industry for the current situation, breaking the circle and large-scale commercial use. The first step of the Long March.
Judging from the market reaction, there are already signs of recovery, but next month is destined to belong to Ethereum. On June 24, Ropsten, the Ethereum test network, activated the London upgrade at block height 10499401. At the same time, the Ethereum mainnet is expected to The London upgrade will be officially launched on July 14, including a total of 5 proposals including EIP-3198, EIP-3529, EIP-3541, EIP-3554, and EIP-1559.
After the upgrade, the Gas fee of Ethereum may even drop to a lower level, which is expected to bring about huge changes to the entire Ethereum ecology and even the secondary market. With the gradual rise of the market, the low Gas fee will trigger more people to try DeFi and NFT. The rise of TVL is almost a certainty. The market estimate for the destruction of the future Ethereum mainnet is at least 700 ETH per day, that is, Burning 250,000 ETH per year is not a small change. It is believed that the ecological construction promoted by this and the advancement of subdivided fields will make the development of Ethereum more prosperous. As V God said before: "Ethereum is not only a A public chain is an ecology.”
But for the country, the continuous blow will not subside, and the bad news has not been exhausted. Some centralized exchanges are in the process of passive transformation, from the initial exchange business to now covering the combination of Token Fund, mining pool, and DEX We can continue to wait and see what kind of market effect the suppression of OTC and contracts will bring.
