Will Ethereum’s ERC-4337 deployment catalyze ETH price recovery after Silvergate FUD?
- Ethereum’s ERC-4337 has been deployed on the Ethereum mainnet, implementing a new token standard on the blockchain.
- Silvergate bank’s warning about possible inquiries from bank regulators and the US Department of Justice have resulted in a vast majority of crypto clients leaving the bank.
- The FUD from Silvergate’s announcement has triggered a decline in Bitcoin and Ethereum prices, ETH nosedived 4.5%.
An Ethereum token standard ERC-4337 was quietly deployed on the mainnet earlier this week. It remains to be seen whether the deployment can aid the recovery of ETH after the decline in the altcoin’s price with uncertainty surrounding Silvergate bank.
Also read: Why analysts believe Bitcoin is going to zero, will BTC price nosedive?
Ethereum’s ERC-4337 has been deployed on the mainnet
An Ethereum network upgrade EIP-4337 quietly went live on the mainnet blockchain. The update ushers in a number of improvements for the ETH ecosystem. On March 1, EIP-4337 deployed on the Ethereum mainnet, the standard was initially proposed in September 2021.
The rumors are true... ERC-4337 has been deployed on mainnet
— erc4337 (@erc4337) March 2, 2023
Security audit by @OpenZeppelin
️ Bundlers and paymasters by @stackup_fi, @AlchemyPlatform, @biconomy , @etherspot, @candidewallet, @blocknative & more
️ $300K in grants by @ethereum pic.twitter.com/WOjMvaZe6M
The proposal describes the upgrade as an account abstraction which completely avoids consensus-layer protocol changes instead of relying on higher-layer infrastructure. Account abstraction essentially allows ETH wallets to operate as programmable smart contracts. This would enable users to recover lost private keys, among other benefits.
Silvergate FUD drives ETH price lower
The recent announcement from Silvergate bank regarding likely regulatory and other investigations from bank regulators and the US Department of Justice have resulted in uncertainty among crypto market participants.
The Fear, Uncertainty and Doubt (FUD) in the crypto ecosystem has negatively influenced Ethereum price, resulting in a 4.5% loss overnight. It remains to be seen whether the implementation of the ERC-4337 protocol will begin a recovery in Ethereum.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
