Cancun is a famous tourist city in Mexico and the venue for the Devcon 3 conference. According to the naming rules of Ethereum upgrades, the upgrade named after the place name is an upgrade to the Ethereum execution layer.
The Ethereum consensus layer upgrade synchronized with the "Cancun Upgrade" is codenamed Deneb. Therefore, the official name of the complete version of the Ethereum upgrade execution layer and protocol layer has been determined to be "Dencun Upgrade". Dencun is a compound word of Cancun + Deneb.
After Ethereum completed the merger, it was divided into a consensus layer (responsible for PoS consensus) and an execution layer (executing contract code).
The job of the execution layer is to execute the data stored in Calldata. Currently, the data sent back from Layer2 to L1 is stored in Calldata, but this data only needs to be verified and does not need to be executed. In fact, it does not need to be transmitted to the execution layer to increase the burden on the execution layer. It only needs to be stored in the nodes of the consensus layer.
To this end, EIP-4844 introduces a new transaction type - Blob Transcation, which is similar to an additional plug-in database. It designs a data type Blob for the data returned by L2, and separates it from L1's Calldata. In this way, Blob data only needs to be accessed and verified by those in need within a certain period of time, and there is no need for the L1 execution layer to execute all of it, which greatly reduces the burden on L1.
EIP-4844 is a precursor to Danksharding, which aims to achieve temporary storage and retrieval of off-chain data through Ethereum nodes, and is expected to reduce L2 transaction fees by 10-100 times.
Cancun Upgrade Concept Coin Review
The Cancun upgrade will bring substantial benefits to the Ethereum network, including: enhanced scalability, lower gas fees, enhanced security, efficient data storage, enhanced cross-chain connections, etc. After the upgrade is completed, it is expected to stimulate the explosion of Ethereum L1 itself and L2 ecological applications, as well as cross-chain bridges, storage, GameFi and other sectors.
ETH: The Cancun upgrade will significantly improve the utility of Ethereum and consolidate its status as the "King of Public Chains". After the upgrade, lower gas fees and higher TPS will be achieved, making Ethereum's infrastructure more and more perfect. The entire Ethereum ecosystem will achieve unprecedented development and prosperity, and the value of ETH itself will naturally increase.
Layer2：ARB、OP、MATIC、NEAR、GMX、MAGIC、SNX、LRC、IMX等
Among them, the focus is on the two leading currencies ARB and OP. At present, these two currencies have set historical highs. The sky is high and the birds fly freely, and the sea is wide and the fish jump freely! Before the next bull market starts, the two most important currencies to be configured besides BTC and ETH have the potential of 10 times or even 100 times. You can choose one of the two to focus on.
There are only five days left until the Bitcoin spot ETF is approved. The following is an analysis of the Ethereum 4-hour structure to provide a reference for your judgment on the short-term and medium-term trend of ETH:
In any case, the Cancun upgrade is of great significance to Ethereum and its ecosystem. The upgrade is expected to be completed in the second quarter. This will most likely become the next wave of market speculation. When a large-scale buying point appears in the Ethereum system, intervene boldly and hold for the long term.
Stader Labs - $SD LSD Array (Liquid Staking Derivatives)
Update Cancun in Q1 2024, ETH up => all narratives LSD, LSDfi, LRT up accordingly.
$SD is a hidden gem that is benefiting from this trend
Current Price: $1.19
MC：37.71M
VAT: 167M
TVL：321M
- Steady growth over the past 3 months Circulating Supply = 22%
The total supply is large, MM holds a lot of goods, and it is convenient to push.
*$SD is not yet available on Binance or Coinbase
- Stader is a non-custodial and secure liquid staking protocol
Runs on Ethererum, Bnb, Hedera, FantomFDN, Polygon, NEAR, and Terra.
Help users easily discover and access staking solutions. They are building infrastructure for multiple PoS networks, serving retail crypto users, exchanges, and cryptocurrency holders. Their goal is to provide users with a convenient and secure way to participate in staking and earn rewards.
- $SD tokens are used for:
+ Stake to get rewards from the project
+ As an insurance asset
+ Provide rewards and discounts to LPs
+ Charge transaction fees on the system
+ is the governance token of the project.
- $SD difference: Compared to traditional LSD which requires at least 32 ETH to stake, Stader Labs only requires 4 ETH. This means that less ETH will reach smaller users and more retailers.
- VC: The project has Coinbase Ventures participating as level 1. There are many other large funds like Pantera, Solana Ventures, Jump Capital...
- Token Economics: The project is also reasonable, with about 40% going to rewards and staking.
- Financing: In the latest round of financing, the project raised an additional $10 million. The initial valuation at the time of financing was $500 million, which is a pretty good valuation, but the current FDV level is only $167 million, which means it is lower than the valuation of the raised funds.
- Update: The team is still working on this. Soon we will switch to a model similar to Rocket pool, but allowing validators to borrow SD. SD holders can lend to validators and get a share of the revenue from them.
- $SD bullish narrative
+ Undervalued Liquid Staking
+ Eigenlayer re-staking
+ SD Lending (coming soon)
+ Multi-chain and more
When enough stakes and multi-platform activity are integrated, $SD will have great room for future growth.
ARB (Arbitration)
The name implies the powerful potential of Ethereum’s second-layer scaling solution. By cleverly using optimistic rollups, it breaks through the limitations of Ethereum’s speed, scalability, and cost efficiency at lightning speed. The magic of this technology lies in the intelligent migration of most of the burden of computation and storage to off-chain, thereby achieving higher throughput and lower fees, while still maintaining reliance on Ethereum’s security guarantees and broad compatibility.
Looking at the four-hour short-term chart, the K-line in the last four hours broke through the previous high of $1.82 with large volume. Pay attention to whether it will fall back to 1.82 as support in the next four hours.
Some people may think that ARB has already risen a lot and they are waiting for a pullback to enter the market. This kind of thinking is easy to fall into the leek mentality, because wanting to buy at the lowest point and sell at the highest point is often an idealized strategy that is difficult to achieve, which can easily lead to missed opportunities or being stuck.
For currencies that have just entered an upward trend, especially spot currencies, being overly concerned about short-term fluctuations of 10-20 points may hinder the ability to understand the technical aspects of the market. In the early stages of an uptrend, it is a more rational strategy to choose to hold and wait for a clear peak signal to appear, and then consider selling.
Among the many Ethereum expansion solutions, Arbitrum stands out with its unique advantages. It is compatible with unmodified EVM contracts and transactions, which means that any existing Ethereum DApp can run on Arbitrum without any changes to the code. At the same time, Arbitrum can process thousands of transactions per second with low fees and fast finality while maintaining the security guarantees of Ethereum. This flexibility and scalability make Arbitrum an ideal choice for developers.
Arbitrum will unlock 1.11 billion ARB tokens worth $1.24 billion on March 16, 2024. More than 5 billion ARB tokens remain locked. Over the next four years, ARB will continue to be unlocked on the 16th of each month. The same applies to OP tokens. This may have some impact on the ARB/OP token price, but Yu Youyou believes that its price will be mainly affected by the Layer2 network TVL (total value locked) transaction volume or the total amount of transaction liquidity.
