Ethereum Foundation Invests Heavily in zkVM Technology
The Ethereum Foundation (EF) is making a significant investment in zero-knowledge virtual machines (zkVMs), according to a recent announcement by researcher Justin Drake. The multi-million dollar investment aims to bolster various aspects of zkVM technology, including formal verification through zkevm.org, cryptographic analysis via Poseidon, and potential contributions to ethproofs.org.
This move signifies the EF's commitment to scaling and enhancing the security of the Ethereum network. zkVM technology has the potential to significantly increase transaction throughput while maintaining the privacy of users.
Ethereum Co-founder's ETH Trades Spark Market Uncertainty
In a separate development, Ethereum co-founder Jeffrey Wilcke recently transferred over 20,000 ETH to the Kraken exchange. This follows a series of similar transactions throughout 2024, totaling approximately 44,300 ETH sold at an average price of $3,342.
While the reasons for Wilcke's sales remain unknown, the large volume of ETH entering the market has caused some short-term volatility. This coincides with a slight 0.7% dip in the Ethereum price over the past 24 hours.
Market Outlook and Conclusion
Despite the recent price fluctuation, some experts remain optimistic about Ethereum's potential to reach $4,000 within this market cycle. While the EF's investment in zkVM technology bodes well for the long-term health of the Ethereum ecosystem, Wilcke's ongoing ETH sales introduce an element of uncertainty into the short-term market outlook.