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🟣 Ethereum Users Are in For a Treat Today

But It’s Not All Rainbows and Unicorns

GM DOers! 

It’s a big day for Ethereum today! 🤤

  • EIP-4844 is officially being launched today. 

  • Optimism will eliminate fees for certain developers temporarily.

  • Magic Eden will retroactively reward past ETH NFT traders with Diamonds.

  • EtherFi is releasing its token.

Yeah, as I said, it’s a big day/week, and I’ll walk you through each main event occurring on Ethereum today. 

But keep in mind: It’s not all rainbows and unicorns. 🦄

  • Arbitrum is gearing up for a significant release this week.

  • The prospects for an Ethereum ETF in May have significantly decreased.

Let’s get you up to speed.

EIP-4844 – The Blobs Are Coming Today 👀

EIP-4844, known as Proto-Danksharding, is gearing up to slash Ethereum's Layer 2 (L2) gas fees by introducing "blobs"—cost-effective data chunks that reduce transaction costs. 

This upgrade will particularly benefit Rollups (Base, Optimism, Arbitrum etc.) that bundle transactions for cheaper and more efficient processing on Ethereum's main network. 

By making these data transmissions cheaper, we estimated that EIP-4844 would lower fees on L2s to anywhere between 1-5 cents per transaction

Context: Users pay anywhere from $0.2 to $2 for transactions on L2s today, which is clearly not sustainable. 

EIP-4844 is part of Ethereum's larger goal (Danksharding) to enhance scalability and performance, ultimately aiming for the network to process over 100,000 transactions per second.

Like Jesse Pollak says, the north star is <1s and <1¢ global transactions. 

More about EIP-4844 here.

EIP-4844 (Positive) Consequences 😁

Because gas will get considerably cheaper ThirdWeb has put forward a $3 million fund that would cover the gas on certain apps. 

If you’re a dev building on the Optimism Superchain, you should apply! 

Now, keep in mind that while this $3 million fund is a nice touch, it’s not a HUGE deal. 

Here’s why:

During the past 2 weeks, the daily average fees paid to Optimism were ~$400k. 

With EIP-4844, this gas will lower by 70%, so the daily fees paid by users every day will lower to ~$120k, assuming activity remains unchanged. 

If ThirdWeb’s fund was to cover the gas for all apps on the Optimism Superchain, then that fund would last for ~25 days.

Note: Only certain apps will be chosen to partake in this fund, so the money will last a lot longer than 25 days for the chosen ones. 

Magic Eden Diamonds 💎

Magic Eden, which became the leading Solana NFT marketplace, expanded across Ethereum, Bitcoin and Polygon during the bear. 

Their marketplace is now multi-chain and they’re distributing rewards retroactively to NFT traders. These rewards will turn into a token airdrop ($NFT) at some point later this year. 

Solana traders have already gotten their Diamonds. It’s now time for ETH people. 

If you’ve traded JPEGs on ETH since 2017, expect a Diamond drop from Magic Eden today! 

You’ll be able to see your Diamond rewards here.

EtherFi’s Token is Coming 🪂

EtherFi is the leading liquid restaking protocol on Ethereum, allowing users to reuse Ethereum's proof-of-stake blockchain to secure other networks and protocols.

We’ve been waiting for a token drop for a while now, and it’s finally here. 

Between tomorrow and March 17th, you can use Binance’s Launchpool by staking $BNB to farm EtherFi’s $ETHFI.

On Monday, March 18th, Binance will list $ETHFI on its platform. 

P.S. If you’ve used EtherFi in the past, like we suggested, you’ve accrued points. These will turn into tokens at the time of the token’s drop. 

It’s Not All Rainbows and Unicorns for ETH 😬

The Ethereum ecosystem is bullish overall. But here are a few things you need to be aware of too. 

Arbitrum Unlocks 🔓

3 days from now, on March 16th, a whopping 1.11 billion $ARB tokens will be released into the wild – that’s worth $2.31 billion at today’s $ARB price.

Source: TokenUnlocks

In other words, Arbitrum is about to almost double its circulating supply this week, potentially causing some volatility for Arbinauts. 

P.S. If you want to succeed in crypto, familiarize yourself with token unlocks. 

Low Chances for Ethereum ETF Approval in May 😨

We were pretty confident that an Ethereum ETF would be approved in May.

But our dreams are being ruined by Bloomberg’s Senior ETF Analyst, Eric Balchunas. 😢

He recently came out saying that there’s now a 35% chance that the ETH ETF would get approved in May. 

The reason? The SEC is stalling.

They’re moving very slow with reviewing the applications. With the deadline approaching very fast, experts think the approval won’t happen in May. 

In prediction markets, Ethereum's likelihood of getting an ETF approval is being assessed at 31%.

Source: Polymarket

While I’m no expert on how the SEC works, I remain optimistic on this Ethereum ETF approval.

It feels like the SEC is in a pickle. 

If they reject these ETF applications, they will get sued into the ground by BlackRock & co.

We’ve seen this happen with the Bitcoin ETF process already. 

If the SEC allows that to happen, they’ll be inevitably forced by the courts to eventually approve these applications, which will result in another L for Gary Gensler. I doubt he’s ready to add another loss to his record. 😅

It seems like the SEC is simply trying to stall. How long they’ll be able to do this is up for debate, but one thing’s clear.

They will approve the ETF at one point this year. 

Personally, I’m keeping my hopes up for May. 🤞

If I were you, I’d be trying to front-run the institutions who can’t wait to scoop up all the $ETH, just like they’re scooping up all the $BTC right now.

Thanks for reading. And remember, you're strong, you’re powerful, you’re alpha!

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Disclaimer: This article is for informational purposes only and not financial advice. Conduct your own research and consult a financial advisor before making investment decisions or taking any action based on the content.

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