Ethereum
Ethereum ETH Upgrade Debate: How Will EIP 3074 Impact the Future of ETH?
- Developers were mixed about 3074 EIP during Ethereum’s recent developer call.
- ETH price fell, on-chain metrics remained positive.
Ethereum [ETH] Dencun’s latest upgrade was a success that helped many L2 solutions reduce fees to extremely low levels.
After this upgrade, Ethereum developers set their sights on their next upgrade, Prague, during their recent call.
New developments
Ethereum’s Pectra upgrade, expected in late 2024 or early 2025, is expected to bring new features to crypto wallets, improving user experience.
Ethereum Improvement Proposal (EIP) 3074 allows regular crypto wallets to function like smart contracts.
One of the key aspects of EIP-3074 is its ability to offer standard wallets, like MetaMask, smart contract capabilities.
Additionally, it allows a third party to cover the gas fees associated with a user’s transaction, potentially making transactions more affordable for users.
It also includes features such as transaction pooling, reducing the need for multiple signatures, and sponsored transactions, allowing wallets to delegate funds for third-party use, similar to ERC-4337’s account abstraction.
Some developers say proposed changes to EIP 3074 to allow broader use cases and global message revocation significantly increase its complexity, making it more difficult to implement and potentially introducing security risks.
Due to these circumstances, the developers decided to hold a separate breakout meeting to discuss the technical aspects of EIP 3074.
Their goal is to reach consensus on its implementation in a way that everyone is happy with, given its controversial nature.
Source:
ETH Status
Developments to the Ethereum network could strongly influence the price development of ETH in the future.
At press time, ETH was trading at $3,170.97 and its price had fallen by 4.48% in the last 24 hours. However, the volume at which ETH was trading had increased by 9.33% during the same period.
Spot ETF speculation around ETH has been one of the main drivers of ETH price action over the past few days.
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Despite the recent price drop, onchain metrics have provided a positive picture. Network growth for ETH has also increased during this period, indicating that the number of new addresses showing interest in ETH has increased.
This renewed interest could help ETH experience new bullish momentum. Along with this, the speed has also increased, indicating increased trading frequency for ETH.
Source: Santiment