Yesterday, BTC inserted a needle of 4,000 US dollars and successfully took away 100,000 people!
This is the third time Bitcoin has been stagnant recently! Many people are asking me why Bitcoin has been stagnant so frequently recently?
First: The purpose of inserting the needle is to test the pressure level, break through the pressure level, and stabilize the pressure level in the later stage!
Second: In the last bull market, many people were trapped around 69,000, so there are many obstacles here. Only by digesting them through the market's positives can Bitcoin reach a new height! !
Third: Every night is when foreigners are active. BlackRock and other ETF institutions also have huge trading volumes in the evening and early morning, so the recent spikes were all in the early morning and evening!!
Fourth: It is also to blow up the contract, to get long orders out of the game, and to blow up short orders! Then, the long and short orders will explode. The more the market deleverages, the stronger it will pull up later!
What everyone needs to pay attention to recently is the ETH Cancun upgrade on March 13:
Currently, the mainnet is scheduled to update the execution layer (Cancun) and consensus layer (Deneb) on March 13, Epoch 269568. This upgrade includes a total of 9 different EIP proposals, which is expected to reduce the cost of storing data on Layer2 on the blockchain.
Arbitrum One and Arbitrum Nova have also planned to upgrade to ArbOS 20 “Atlas” version, and this proposal has been approved by ArbitrumDAO. In order to ensure the stability of network operation, all node operators need to upgrade their Nitro nodes to version 2.3.1 or later before March 14, 2024.
The behavior of a generalized layer 2 network is the same as Ethereum, but at a lower cost. Anything you can do on Ethereum layer 1, you can also do on layer 2. Many decentralized applications have begun to migrate to this type of layer 2 network, or skip the mainnet altogether and deploy directly on layer 2 networks.
Arbitrum One, Optimism Boba, Network, Base, Starknet are all second layers!
The main goal of the second layer network is to increase transaction throughput (number of transactions per second) without sacrificing decentralization and security.
The Ethereum mainnet (layer 1) can only process about 15 transactions per second(opens in a new tab). When demand for using Ethereum is high, the network becomes congested, which increases transaction fees, and users who cannot afford these fees are "squeezed out." Layer 2 networks are a solution to reduce these fees by processing transactions outside of the layer 1 blockchain.
Benefits of Layer 2 Network:
lower costs:
By combining multiple off-chain transactions into a single layer 1 transaction, transaction fees will be significantly reduced, making it easier for everyone to participate in Ethereum.
Maintaining Security:
The second-layer network blockchain settles transactions on the Ethereum mainnet, allowing users to benefit from the security of the Ethereum network.
Expanded use cases:
As transactions per second increase, transaction fees decrease, and new technologies develop, the project will expand into new applications and improve the user experience.
Ethereum's Cancun upgrade is approaching and should be following the same script as Ethereum 2.0. It will keep pulling up before the upgrade, and after the news of the upgrade spreads, the market will start to plunge, deleverage and explode contracts, and both long and short positions will explode. After the explosion, the market will be carefully analyzed to wash out the profit-taking, and then it will start again!
Before Cancun is upgraded, you can sell the coins on the second layer and wait until the pin is inserted to wash the market before buying them again!
I still say that there is really no need to play contracts when the bull market comes. Isn’t it better to hoard ETH or Bitcoin or BNB? Spot will accompany you for a long time, while contracts can only give you a short-term stimulation!
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#eth， #坎昆升级，了解layer2概念
