Daily News | Market Fluctuates, SOL's Ecosystem Shines Brightly; Trading volume of Arbitrum Uniswap exceeds $150B; MetaMask launched "smart trading" to counter ETH's preemptive trading

2024-05-07, 04:06

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## Crypto Daily Digest: The trading volume of Arbitrum Uniswap exceeds $150 billion; MetaMask launched "smart trading" to counter Ethereum's preemptive trading
First, let's take a look at the trading activities of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs. According to Farside Investor data, on May 6, Grayscale Bitcoin spot ETFs (GBTC) received an inflow of $3.9 million in funds; Meanwhile, Fidelity Bitcoin spot ETF (FBTC) inflow was $99.2 million, Bitwise Bitcoin spot ETF (BITB) inflow was $2.1 million, and ARK 21Shares Bitcoin spot ETF (ARKB) inflow was $75.6 million.

The total transaction volume of Arbitrum on <a href="/price/uniswap-uni" target="_blank" class="blog_inner_link">Uniswap</a> has exceeded $150 billion, making it the first Layer 2 protocol to break through the DEX threshold. Uniswap Labs announced in a social media post on Monday that as of early May, the cumulative transaction volume of Arbitrum had reached $150.2 billion.

According to DeFiLlama's blockchain data, the total value locked (TVL) of Arbitrum is $2.64 billion, making it the largest Layer 2 protocol in TVL, second only to Layer 1's <a href="/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a>, BSC, Tron, and <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>. According to DeFiLlama's data, Uniswap is TVL's largest decentralized exchange, valued at $5.54 billion as of May 6.

The core contributor of Arbitrum, Offchain Labs, released the latest upgraded version of Layer 2 in March this year, named Atlas. According to previous reports from The Block, this upgrade has added support for block transactions to help reduce the cost of Ethereum Layer 2 transactions.

Ethereum's most popular encrypted wallet, MetaMask, has launched a new feature this week aimed at helping users avoid the impact of Maximum Extractable Value (MEV).
MEV refers to the additional profits blockchain operators obtain from users by previewing or reordering transactions before writing them into the network. It is sometimes similar to the annoying practice of preemptive trading orders in traditional financial markets. MEV has a significant impact on the operation of Ethereum, including increasing user prices, slowing down transaction speeds, and even causing transactions to fail under certain network conditions.

This new feature is called "smart trading,” which allows users to submit transactions to a "virtual memory pool" before they are officially on the chain. According to Consensys, the company behind MetaMask, virtual memory pools will guard against certain MEV strategies and run behind-the-scenes transaction simulations to help users achieve lower fees.

MetaMask's solution shares some similarities with private memory pools, which have become an increasingly popular strategy for ensuring transaction privacy and preventing MEV, but there may be centralization risks. Linehan, the department head of the Consensys Special Mechanism Group, believes that intelligent trading is a "concrete first step" towards the broader vision of MetaMask.

Meanwhile, the Ethereum community's EIP-3074 proposal to improve wallets is also highly anticipated, a code change aimed at improving the usability of encrypted wallets.

Presently, there are two wallet accounts on Ethereum: the most common are externally owned accounts (EOA), such as MetaMask, and smart contract accounts, such as Argent and Safe. The user of the EOA account has a pair of keys (public key and private key), while the smart contract account is controlled by code. The main problem with EOA is human error; If you lose the private key of your EOA account, there is no help desk or key recovery process that can help you regain funds.

EIP-3074 is another step towards such innovation, as it delegates trading functions to smart contracts. A vital component of this proposal is to allow users to conduct bulk transactions and sign them all at once. Other features include enabling third-party sponsorship of transaction fees for users so decentralized applications (Dapps) can pay gas fees for users.

## Market Trends: BTC fluctuates widely, Solana's ecosystem performance is impressive
BTC rose to a high of $65,500 in intraday trading yesterday but then fell back to around $64,000, showing a broad and volatile market trend. At the same time, Ethereum has performed poorly due to a one-year low on chain gas fees, reflecting lower network usage rates. At the macroeconomic level, the US stock market has risen, and the market's early expectations of interest rate cuts continue to bring <a href="/price/optimism-op" target="_blank" class="blog_inner_link">Optimism</a>.
### Market Hotspots:
The performance of public chain Solana (SOL): The increase in SOL prices has driven up multiple projects in the Solana ecosystem, including Jupiter (JUP), Wifey (WIF), and Bomberman (BOME). Especially in Solana's recently announced hackathon campaign, after the mining project ORE won the championship, its price doubled within a day. ORE adopts a linear mining strategy, which is expected to take 40 years to mine 21 million tokens. This long-term mining strategy may have a sustained impact on its market prices.

Significant increase in ENA: The price of ENA has surged by 15%, and the market speculates that the reason behind this may be that several major trading platforms - as ENA's leading investors - may introduce USDe trading pairs to increase the usage scenarios of USDe. This measure will directly enhance the liquidity and practicality of ENA.

The general rise of AI concept tokens: With the expected release of ChatGPT 5 in June and the Apple Developer Conference also scheduled for June, AI concept tokens have seen a general rise in recent times. The significant events in this series of technological fields have stimulated market interest in AI-related tokens, and the market may frequently speculate on these AI-concept tokens during this period.

The current cryptocurrency market is in a dynamic state of change, especially with active projects in the AI and Solana ecosystems. Investors should pay attention to upcoming technology products and developer activities, which will drive market sentiment and price fluctuations in the short term. Meanwhile, paying attention to macroeconomic indicators and policy changes, such as the Federal Reserve's interest rate cut decision, is also vital in formulating investment strategies. Investors must remain cautious and appropriately diversify high-volatility assets to manage potential risks.

## Macro: Wall Street closed higher, Asian markets hit highs, and global markets were boosted
On May 6, the US stock index closed higher on Monday, rising for the third consecutive trading day as investors continued to hold higher hopes for the possibility of the Federal Reserve cutting interest rates this year. The Dow Jones index rose 0.46%, the Standard&Poor's index rose 1.03%, and the Nasdaq index rose 1.19%.

The market fell in April as inflation proved to be more challenging, and some investors began to worry that interest rate cuts may not be achieved at all.

However, Friday's data showed that the slowdown in employment growth in the United States in April exceeded expectations, easing the pressure on the Federal Reserve to maintain higher interest rates for a longer period. In addition, the unexpected rise in the US corporate financial reporting season has brought new positive moments to investors in recent trading days.

Meanwhile, the Federal Reserve stated last week that it is inclined to reduce borrowing costs ultimately but hopes to gain "greater confidence" that inflation will continue to decline before interest rate cuts. Policymakers reiterated this message on Monday.

Most sectors of the S&P 500 index rose. The energy index was one of the largest increases, partly due to US natural gas futures reaching their highest level in 14 weeks.

The Asian market is also relatively optimistic. On May 7, the Asian stock market hit a 15-month high on Tuesday as confidence in US interest rate cuts reignited, while traders waited for a policy meeting to be held in Australia later that day and closely monitored the yen's depreciation.

The MSCI Asia Pacific Stock Index rose 0.3% in early trading. Many mainland investors buying boosted the Hang Seng Index, while the Hong Kong stock market slightly declined, rising more than 14% for 10 consecutive days, the most extended consecutive rise since 2018. The Nikkei spot index in Japan rose 1% overnight.

The Reserve Bank of Australia may turn to hawks: it is widely expected that the Reserve Bank of Australia (RBA) will maintain interest rates unchanged at its policy meeting later on Tuesday, but the focus will be on whether the outlook will shift to include the possibility of interest rate hikes after unexpected inflation.

Regarding commodity trade, oil prices have slightly strengthened, with Brent crude oil futures rising 0.3% to $83.58 per barrel, and a Middle East ceasefire agreement is difficult to reach.

Gold rose overnight and stabilized at $2,325 per ounce on Tuesday.

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<a href="/how-to-buy/nucypher-nu" target="_blank" class="blog_inner_link">how to buy NuCypher</a>Author:**Sherry S. & Icing**, Gate.io Researcher
<a href="/how-to-buy/nucypher-nu" target="_blank" class="blog_inner_link">how to buy NuCypher</a>Translator:Joy Z.
<a href="/how-to-buy/nucypher-nu" target="_blank" class="blog_inner_link">how to buy NuCypher</a>\*This article represents only the views of the researcher and does not constitute any investment suggestions.
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<a href="/how-to-buy/nucypher-nu" target="_blank" class="blog_inner_link">how to buy NuCypher</a>
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