A widely followed crypto analyst is taking a look at Polygon (MATIC) while predicting upward moves from two altcoins. Pseudonymous crypto trader Altcoin Sherpa tells his 197,400 followers on the social media platform X that THORChain (RUNE) is ready to move up. “RUNE: Next area up is $3.” THORChain is a decentralized liquidity protocol designed to […]
The post Trader Predicts Legs Up for THORChain and One Ethereum-Based Altcoin, Updates Outlook on Polygon appeared first on The Daily Hodl.
Buffett’s bet on crypto-friendly Nubank has put Berkshire Hathaway $130 million in profit already this year.
Warren Buffett may still view cryptocurrencies and Bitcoin (BTC) as “rat poison squared,” but he is generating big profits from his position in a crypto-friendly bank in 2023.
The “Oracle of Omaha” purchased 107 million shares of Nu Holdings, a Brazil-based fintech company and owner of the crypto-friendly Nubank, via his firm, Berkshire Hathaway, in two separate rounds in 2021.
Berkshire invested $500 million in Nu Holdings in June 2021 and raised its stake by another $250 million in December 2021. The firm has not sold a single share since, according to its second quarter 2023 earnings report.
Nu’s share price is currently up nearly 106% year-to-date (YTD), meaning Buffett’s $750 million position is now worth around $879.50 million, assuming Berkshire has still not sold any of its Nu shares. However, at its peak in February 2022, the position was worth over $1 billion.
Nubank has been dubbed crypto-friendly because some of its divisions offer crypto-related services to over 1.35 million users. Therefore, investing in Nubank can be seen as having indirect exposure to the cryptocurrency industry.
That includes Easynvest, a trading platform that offers a Bitcoin exchange-traded fund (ETF) product, and Nubank, a digital financial services platform that offers BTC and Ether (ETH) trading. Nubank also launched a loyalty token on the Polygon blockchain.
Moreover, Nu Holdings allocated 1% of its cash holdings to Bitcoin in May 2022.
“This move reinforces the company’s conviction in Bitcoin’s current and future potential in disrupting financial services in the region,” Nubank stated at the time.
Nubank is the largest fintech bank in Latin America, with over 80 million customers in Brazil.
Underperforming Nu stocks are Buffett’s other top holdings, Amazon and Apple, which have gained 54.65% and 36%, respectively. Apple is by far the biggest holding of Berkshire Hathaway, comprising roughly 45% of its $354 billion investment portfolio as of September 2023.
Related: Bitcoin continues to outperform Warren Buffett’s portfolio, and the gap is set to widen
Nu has also outperformed Berkshire Hathaway’s stock, which has risen 9.25% YTD.
Nevertheless, Bitcoin has finally caught up to the price performance of Nu stock this year. In fact, BTC price is now also up 106% YTD amid “Uptober” and recent Bitcoin ETF euphoria.
Interestingly, Bitcoin’s rapid rise to catch up with Nu over the past weeks has coincided with BTC decoupling from the stock market in October.
But while this is generally seen as a bullish sign, some commentators argue that Bitcoin ETF “hopium” is the driver of BTC price gains presently.
Indeed. Lots of historical data that shows bitcoin is tightly correlated to the stock market. The recent “decoupling” is driven imo by hopium over the ETF. But a significant downturn in stocks will bring BTC back to earth. pic.twitter.com/5hk523j3Gp
— Joe Carlasare (@JoeCarlasare) October 26, 2023
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
A prominent market intelligence platform says that a handful of altcoins should continue to rally as traders continue to focus on Bitcoin (BTC) and Ethereum (ETH). In a new thread on the social media platform X, crypto analytics firm Santiment says that nine altcoins – including Polygon (MATIC), Decentraland (MANA), Fantom (FTM), and Pepe (PEPE) […]
The post Pepe, Polygon, Fantom and Six Other Altcoin Rallies Could Continue, Says Analytics Firm Santiment – Here’s Why appeared first on The Daily Hodl.
An analyst who nailed the top of Bitcoin’s (BTC) 2021 bull market thinks that altcoins are setting the stage for an explosive rally. Pseudonymous analyst Pentoshi tells his 705,600 followers on the social media platform X that some alts could soar for as long as six weeks. “I do think we get a mini alt […]
The post Seeing a ‘Ton of Signs’, Top Crypto Analyst Predicts a Mini Altcoin Season – Here’s the Timeline appeared first on The Daily Hodl.
The crypto analytics firm Santiment says that whales are showing significant interest in a red-hot Ethereum (ETH)-based Chainlink (LINK) rival. The native asset of decentralized oracle protocol Tellor (TRB) clocked 51 unique $100,000+ transactions on Monday, a new all-time high. TRB is trading at $91.66 at time of writing, up from around $9.83 two months […]
The post Whales Showing More Interest Than Ever in Ethereum-Based Altcoin Amid 832% Rally in Two Months: Santiment appeared first on The Daily Hodl.
Bitcoin’s break above $32,400 points to the continuation of the bull move, but will traders be able to sustain the current momentum?
Bitcoin (BTC) easily soared above the $31,000 to $32,400 resistance zone on Oct. 23, which came as a suprise to many market participants. Usually, the price tends to consolidate or hesitate near stiff overhead resistance levels but that was not the case this time around.
Market participants are bullish as they anticipate a Bitcoin spot exchange-traded fund to receive approval sooner rather than later. Bloomberg ETF analyst Eric Balchunas said in a post on X (formerly Twitter) on Oct. 23 that the listing of BlackRock’s spot Bitcoin ETF on the Depository Trust & Clearing Corporation (DTCC) was “all part of the process” of bringing the ETF to market. He added that it was “hard not to view this as them getting signal that approval is certain/imminent.” However, a DTCC spokesperson later said that the listing of the said ETF has been there since August and it being there does not signal any regulatory approval.
The rush to buy Bitcoin before the consent for a spot Bitcoin ETF is received is because analysts expect the prices to surge after the green light is received. Galaxy Digital research associate Charles Yu said in a blog post that Bitcoin’s price may rally by 74.1% in the first year after an ETF is launched in the United States.
Is the recent rally in Bitcoin the beginning of a sustained strong up-move, or is it time to book profits? How will altcoins behave as Bitcoin price shows strength?
Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin skyrocketed above the stiff overhead barrier of $31,000 to $32,400 on Oct. 23. This indicates the resumption of the uptrend.
The sharp rally of the past few days has sent the relative strength index (RSI) deep into the overbought territory. Sometimes, in the initial stages of a new bull move, the RSI tends to stay in the overbought zone for a long time.
The important support to watch on the downside is $32,400 and then $31,000. Buyers are expected to defend this zone with vigor. If the price turns up from this support zone, the bulls will attempt to drive the BTC/USDT pair to $40,000.
Conversely, a fall below $31,000 will indicate that the recent breakout may have been a bull trap.
Ether’s (ETH) range resolved to the upside with a break above $1,746 on Oct. 23, indicating a potential start of a change in trend.
The bulls tried to stretch the rally on Oct. 24 but the long wick on the candlestick shows strong selling at higher levels. The important level to watch on the downside is $1,746. If bulls hold this level during the retest, the ETH/USDT pair may jump above $1,855. That could open the doors for a rally to $1,900 and then to $2,000.
The bears are likely to have other plans. They will try to drag the price back below $1,746 and trap the aggressive bulls. The pair may then slump to the 20-day EMA ($1,648). Such a move will suggest that the pair may extend its consolidation for some more time.
BNB (BNB) rallied above the immediate resistance of $223 on Oct. 23 but the bulls could not maintain the momentum and clear the hurdle at $235.
Sellers are trying to pull the price back below $223. If they manage to do that, it will suggest that the BNB/USDT pair may swing between $203 and $235 for a while longer.
The 20-day EMA ($215) has started to turn up and the RSI is in the positive territory, indicating that bulls have the upper hand. If the price turns up from $223, it will suggest that the bulls are buying on dips. That will improve the prospects of a rally above $235. The pair may then start a rally to $250 and eventually to $265.
XRP (XRP) has been oscillating inside the large range between $0.41 and $0.56 for the past several months. The bulls pushed the price above the resistance of the range on Oct. 24 but the long wick on the candlestick shows that the bears are trying to guard the level.
In a range, traders generally sell near the overhead resistance and that is what is seen in the XRP/USDT pair. If the price reaches the moving averages, it will suggest that the pair may remain inside the $0.56 to $0.46 range for a few more days.
Instead, if the price turns up from the current level and breaks above $0.56, it will indicate the start of a new up-move. The pair may first rise to $0.66 and thereafter attempt a rally to $0.71.
Solana (SOL) reached the pattern target of $32.81 on Oct. 23 where traders may have booked profits. That started a correction on Oct. 24 which was short-lived.
This suggests that the sentiment remains bullish and every minor dip is being purchased. Buyers pushed the price above $32.81 on Oct. 25, indicating the start of the next leg of the uptrend. The SOL/USDT pair may next skyrocket to $38.79.
The RSI remains in the overbought territory, indicating that the pair is at risk of witnessing a minor correction or consolidation in the near term. If the price slips below $29.50, the pair may tumble to $27.12. This level is likely to witness strong buying by the bulls.
Cardano (ADA) jumped above the $0.28 resistance on Oct. 24 but the long wick on the candlestick shows that the bears are selling at higher levels.
The ADA/USDT pair is likely to witness a tough battle near the $0.28 mark. If the price slips and sustains below this level, it will indicate that the markets have rejected the breakout. That could keep the pair inside the $0.24 to $0.28 range for some more time.
On the contrary, if the price rebounds off $0.28 and rises above $0.30, it will suggest that the bulls have flipped the level into support. That could start a new up-move toward $0.32. If this level is taken out, the pair may start its march toward $0.38.
Dogecoin’s (DOGE) rally met with heavy selling at $0.07 on Oct. 24 as seen from the long wick on the day’s candlestick.
The DOGE/USDT pair may enter a period of correction or consolidation in the near term. During that time, if the pair does not give up much ground, it will suggest that the bulls are not closing their positions in a hurry. That will enhance the prospects of a break above $0.07. The pair may then surge to $0.08.
The bullish crossover on the moving averages and the RSI in the overbought territory shows that bulls are in command. This advantage will tilt in favor of the bears if they drag the price below $0.06.
Related: Matrixport doubles down on $45K Bitcoin year-end prediction
Toncoin (TON) turned down from $2.26 on Oct. 24, indicating that the bears are defending the resistance at $2.31.
The first support on the downside is at the moving averages. If the price rebounds off this level, it will suggest that the sentiment is positive and traders are buying the dips. That will increase the likelihood of a break above $2.31. If that happens, the TON/USDT pair could retest the formidable resistance at $2.59.
Contrarily, if the price turns down and breaks below the moving averages, it will suggest that the pair may consolidate between $1.89 and $2.31 for some time. The bears will be back in the driver’s seat if they sink the price below $1.89.
Chainlink (LINK) broke out of a multi-month consolidation on Oct. 22 when buyers drove the price above the overhead resistance of $9.50.
Sellers tried to tug the price back below the breakout level of $9.50 on Oct. 24 but the long tail on the candlestick shows aggressive buying at lower levels. The buying resumed on Oct. 25 and the LINK/USDT pair has continued its journey higher. The pattern target of the breakout from $9.50 is $13.50 but if this level is crossed, the pair may reach $15.
If bears want to prevent the upside, they will have to pull the price back below $9.50. The overbought levels on the RSI alert traders that a minor correction or consolidation is possible in the near term.
Polygon (MATIC) surged above the $0.60 resistance on Oct. 22, indicating accumulation at lower levels.
The 20-day EMA ($0.56) has started to turn up and the RSI is in the overbought territory, signaling a potential trend change. If buyers maintain the price above $0.60, it will suggest the start of a new up-move. The MATIC/USDT pair could rise to $0.70 and then to $0.80.
The important level to watch on the downside is $0.60. A break below this level will suggest that the rally above $0.60 may have been a fake-out. That could trap the aggressive bulls, resulting in a drop to the moving averages.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
The team migrated the POL token contract to the Ethereum network, paving the way for it to replace MATIC in the future.
Polygon Labs has launched the Ethereum contract for the new Polygon token, POL, according to an October 25 announcement. The new token is intended to replace the ecosystem’s current token, MATIC. However, the team said users presently don't need to exchange their MATIC for POL.
The POL token upgrade is now live on Ethereum mainnet.
— Polygon (Labs) (@0xPolygonLabs) October 25, 2023
Polygon 2.0, released this summer, is a roadmap for scaling Ethereum to build the Value Layer of the Internet. POL unlocks that future.
POL is a next-generation token that can power a vast ecosystem of ZK-based L2 chains.… pic.twitter.com/gmrsu0ZqLz
According to blockchain data, the new token was created on October 25 at 09:06 a.m. UTC. Its full name is the “Polygon Ecosystem Token.” In the announcement, the Polygon team claimed that POL would “power a vast ecosystem of zero knowledge-based Layer 2 chains” by implementing a 're-staking protocol' that allows token holders to stake it on multiple chains, performing multiple functions in the process.
The token’s launch will now pave the way for other aspects of the Polygon 2.0 roadmap to be implemented, including the launch of a new staking layer for the Polygon ecosystem, upgrading the current Proof of Stake (PoS) network to zkEVM layer-2, and creating a shared liquidity protocol for all Polygon networks, the post stated.
Related: ZK-focused Manta Pacific opts out of OP Stack for Polygon CDK
The team emphasized that POL is not currently being used for any systems in the Polygon network. Staking on both Polygon PoS and Polygon zkEVM is still being performed via the old token, MATIC, and gas fees on the PoS network are still being paid for with MATIC. So, users, validators, and app developers do not need to exchange their MATIC for POL at present.
Polygon Labs first announced it was developing a new layer-2 ecosystem on June 29. It called the new ecosystem “Polygon 2.0.” On September 14, the team announced that Polygon 2.0 would use a new token, POL. But at the time, the token was just a proposal and had not been deployed to Ethereum.
Polygon’s proposed layer-2 ecosystem will use zero-knowledge proofs to validate transactions between networks. It will face competition from the Optimism ecosystem proposed by Optimism Labs, which will use optimistic rollup technology to secure messages between networks.
Bitcoin price briefly pushed above the $30,000 level. Are altcoins poised to follow?
Bitcoin (BTC) rose above $30,000 on Oct. 20, indicating that the path of least resistance is to the upside. Grayscale Investments filing a new application with the United States Securities and Exchanges Commission for a new spot Bitcoin ETF may have acted as a bullish trigger.
In another positive news for the cryptocurrency space, the SEC sought to dismiss all claims against Ripple CEO Brad Garlinghouse and executive chair Chris Larsen. This will increase expectations that the regulator may slow down its attack on the cryptocurrency entities due to a string of recent setbacks.
As the market sentiment improves, Bitcoin’s long-term holders (LTHs) have been increasing their Bitcoin stockpile. Glassnode data shows that 76.2% of the available Bitcoin is locked up in long-term storage. This is likely to cause a supply crunch in the market, which is bullish for Bitcoin’s price.
Could Bitcoin maintain its momentum and rise higher? Will the altcoins also follow? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin broke and closed above the $28,143 resistance on Oct. 16 and the bulls held the level successfully during the retest on Oct. 17 and 18. This indicates that the buyers flipped the level into support.
The 20-day exponential moving average ($27,769) has turned up and the relative strength index (RSI) is in the overbought zone, indicating that the bulls have the upper hand. The buyers will try to sustain the price above $30,000 and challenge the stiff overhead resistance zone between $31,000 and $31,805. Sellers are expected to protect this zone with vigor.
Time is running out for the bears. If they want to prevent the upside, they will have to quickly yank the price back below $28,143. If they do that, the BTC/USDT pair could plummet to the 50-day simple moving average ($26,882).
Ether (ETH) once again bounced off the strong support near $1,531 as seen from the long tail on the Oct. 19 candlestick. This shows that the bulls are fiercely defending the $1,531 support.
The repeated failure of the bears to break the $1,531 level is likely to attract buyers. The 50-day SMA ($1,613) may act as a hurdle but if crossed, the ETH/USDT pair could pick up momentum and attempt a rally to $1,746.
Although the downsloping moving averages indicate advantage to bears, the positive divergence on the RSI suggests that the negative momentum is reducing. The bears will be back in the driver’s seat if they sink the price below $1,531.
BNB (BNB) turned down from the downtrend line on Oct. 16 but a positive sign is that the bulls did not allow the price to dip below the 20-day EMA ($210). This indicates a change in sentiment from selling on rallies to buying on dips.
Buyers will once again try to drive and maintain the price above the downtrend line. If they succeed, the BNB/USDT pair could accelerate to $235 and thereafter extend the rally to $250. The bears are likely to mount a strong defense at this level.
The important support to watch on the downside is the 20-day EMA and the next is $203. A break and close below this level will open the doors for a possible decline to the next major support at $183.
XRP (XRP) turned down from the moving averages on Oct. 16 but the bears could not sink the price below the immediate support at $0.46. This suggests a lack of selling at lower levels.
The moving averages have flattened out and the RSI is just above the midpoint. This suggests that the XRP/USDT pair may oscillate between $0.46 and $0.56 for some time. If the price stays above the moving averages, the pair may rally to the overhead resistance at $0.56.
On the contrary, if the price falls below the moving averages, it will increase the possibility of a drop to $0.46. The next trending move is likely to begin above $0.56 or below $0.41.
Solana (SOL) soared and closed above the neckline of the inverse head and shoulders pattern on Oct. 19, completing the bullish setup.
The buying continued on Oct. 20 and the bulls are trying to thrust the price above the immediate resistance at $27.12. If they can pull it off, the SOL/USDT pair could rise toward the pattern target of $32.81.
Usually, after breaking out of a major resistance, the price turns down and retests the breakout level. In this case, the price may return to test the neckline. If the price turns up from this level, the pair may start a new up-move. A break and close below $23 could shift the advantage back in favor of the bears.
Cardano (ADA) once again slipped to the strong support at $0.24 on Oct. 19 but the bulls held the level successfully. The positive divergence on the RSI indicates that the bearish momentum is reducing.
The price has reached the moving averages which are likely to act as a strong hurdle. If bulls overcome this resistance, the ADA/USDT pair could first rise to $0.27 and subsequently to $0.28. The bears are expected to fiercely guard this zone.
If the price turns down from $0.28, it will signal that the pair may form a range for a few days. On the downside, the bears will have to tug the price below $0.24 to indicate the resumption of the downtrend. The next support is at $0.22 and then at $0.20.
The long tail on Dogecoin’s (DOGE) Oct. 19 candlestick shows that the bulls are aggressively buying in the zone between $0.055 and $0.06.
The bulls will have to shove the price above the 50-day SMA ($0.06) to indicate a comeback. That could clear the path for a potential rise to the overhead resistance at $0.07. This level may witness a tough battle between the bulls and the bears but if the buyers prevail, the DOGE/USDT pair could surge to $0.08.
If the price turns down from the moving averages, it will indicate that the bears remain active at higher levels. A tumble below $0.055 will signal the start of the next leg of the downtrend.
Related: Why is XRP price up today?
Toncoin (TON) broke below the 61.8% Fibonacci retracement level of $1.98 on Oct. 12 but the bears could not capitalize on this weakness. The bulls purchased the dip and pushed the price back above $1.98 on Oct. 17.
The bears are trying to halt the recovery at $2.20 but a positive sign is that the bulls have not allowed the price to slip back below the moving averages. This suggests that the sentiment has turned positive and traders are buying the dips.
If buyers kick the price above $2.20, the TON/USDT pair will complete a small inverted H&S pattern. The target objective of this setup is $2.47. This positive view will invalidate if the price turns down and slumps below $1.89.
Polkadot (DOT) has been in a strong downtrend. The bears tried to extend the decline on Oct. 19 but the long tail on the candlestick shows solid buying at lower levels.
The relief rally is likely to reach the breakdown level of $3.91 where the bears are expected to mount a strong defense. If the price turns down from this level, it will indicate that the sentiment remains negative and traders are selling on rallies. The bears will again try to pull the price below $3.56 and start the next leg of the downtrend.
On the contrary, if the price breaks above $3.91, it will suggest the start of a stronger recovery. The DOT/USDT pair could then climb to the downtrend line. A break above $4.33 will signal a potential trend change.
Polygon (MATIC) has been trading below the moving averages for the past few days, but the bears have failed to break the support at $0.49. This suggests that selling dries up at lower levels.
The positive divergence on the RSI also shows that the selling pressure could be reducing. If buyers catapult and sustain the price above the moving averages, the MATIC/USDT pair could surge to the overhead resistance at $0.60. This level may again attract selling by the bears. The pair is likely to swing between $0.49 and $0.60 for a while longer.
On the downside, $0.49 remains the key level to keep an eye on. If this level gives way, the pair may plummet to $0.45.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Circle announced the launch of a new platform that uses pre-vetted templates to make building Web3 apps easier for traditional developers.
Stablecoin issuer Circle has launched a new tool that it says will allow developers to “remove the complexity” of building Web3 apps, according to an announcement and accompanying social media post on October 19.
Called “Smart Contract Platform,” the new tool allows developers to deploy smart contracts using a set of pre-vetted code templates and either a console or REST APIs, making it potentially easier for traditional Web2 programmers to use.
Circle also released a Gas Station tool that lets developers pay for their users’ gas fees, which they claim may make onboarding users easier.
1/ Introducing Gas Station and Smart Contract Platform - built for #devs & available in beta!
— Circle (@circle) October 19, 2023
Our two new #Web3 Services products provide solutions for devs & businesses to remove cost, complexity & friction for app users. Let’s dive in to learn how our Web3 services continues… pic.twitter.com/gZnpAvYepT
When developers deploy smart contracts, they usually rely on Web3 developer tools like Truffle or Hardhat to perform the deployment. When using these tools, contracts have to be written in Solidity, a language that some conventional programmers do not know very well. They also require developers to create and run blockchain deployment or “migration” scripts, a process that some Web2 developers are unfamiliar with.
According to its documents, the Circle smart contract platform provides a set of pre-vetted templates that can be used to create a variety of smart contracts. For example, developers can use the templates to produce contracts for non-fungible tokens (NFTs), blockchain loyalty programs, and interactions with Uniswap or other decentralized finance projects or with Circle’s stablecoin contracts. This implies that a developer can use the platform to avoid having to create an entire Solidity contract from scratch, which may make it easier for Web2 developers to start building in Web3.
Related: Account abstraction will drive a billion users to Web3: ConsenSys exec
Once the contract is created, the developer can deploy it to Polygon using a “no-code” console provided as part of the platform, the announcement stated. This implies that the developer does not need to write a “migration” script to deploy the contract when using Circle’s platform. According to the announcement, the “no-code” console is not yet available for Ethereum or Avalanche.
However, the platform also provides a set of representational state transfer application programming interfaces (REST APIs) for use on these networks, and developers can use these to deploy or interact with their contracts. REST APIs are the standard means that developers use to interact with Web2 databases, making them more familiar to developers that have never built Web3 apps.
Circle plans to make both the “no code” console and REST APIs available for more networks in the future, the announcement stated.
According to the platform’s documents, developers can also use it to deploy a custom contract that doesn't use one of the templates, although in this case they must provide the compiled bytecode for it. Still, even in this case, the developer avoids needing to write a deployment script, since this can be handled either by the console or REST APIs.
Circle also announced a second developer feature called “Gas Station.” It allows Web3 app developers to pay for their users’ gas fees. This potentially allows developers to onboard users more easily, as it prevents users from needing to pre-fund their wallets with the native coin of a network.
Gas Station uses Ethereum’s account abstraction feature to implement these gas-free transactions. The Grab super-app has already implemented the new feature, allowing users to pay no gas when redeeming NFT vouchers, the announcement stated.
Blockchain data from Etherscan suggest Scroll’s mainnet was live over a week ago.
Scroll, a new contender in the zero-knowledge Ethereum Virtual Machine (zkEVM) space that works to scale the blockchain, has confirmed the launch of its mainnet.
The team behind Scroll announced the launch in an Oct. 17 post and added that existing applications and developer tool kits on Ethereum can now migrate to the new scaling solution.
“Everything functions right out of the box,” the Scroll team said.
After more than two years of building, we are thrilled to announce the launch of Scroll Mainnet.
— Scroll (@Scroll_ZKP) October 17, 2023
As we open the doors to Mainnet, we want to take a moment to reflect on our journey thus far pic.twitter.com/WKfkjyIkB0
A zkEVM solution such as Scroll’s aims to provide lower transaction costs at a higher throughput for decentralized applications running on Ethereum.
It works by batching thousands of transactions off-chain into one, then submitting a proof consisting of a minimal data summary to Ethereum’s mainnet.
Blockchain data suggests Scroll had withheld the news that its mainnet was live since Oct. 8 — the date at which the first smart contract was deployed on thScroll mainnet, according to Etherscan data.
Scroll said the mainnet launch came after 15 months of extensive testing and security audits across three separate testnets.
“Our bridge and rollup contracts were audited by OpenZeppelin and Zellic,” Scroll added. Its zkEVM circuits were reviewed by Trail of Bits, Zellic, and KALOS.
Across its three testnets over 450,000 smart contracts were deployed enabling over 90 million transactions across 9 million blocks. 280,000 ZK-proofs were also generated the firm said.
— Scroll (@Scroll_ZKP) October 17, 2023
About a month ago, Scroll co-founder Ye Zhang told Cointelegraph Scroll would launch with centralized features but plans to increasingly decentralize over time.
“We will have a centralized sequencer and the central approver button,” Zhang said. He added a plan is in place to remove that button, however.
“We have a roadmap [...] To solve the single point of failure and to incentivize the community to build better proving hardware.”
Zhang said the Scroll team will also pitch several proposals to let the community discuss what’s best for Scroll moving forward.
Related: ConsenSys launches Linea zkEVM to further scale Ethereum
Scroll was founded in 2021 with the goal to be more community-driven. Other zkEVM solutions working to scale Ethereum include Polygon, zkSync, StarkWare and Immutable.
Jordi Baylina, technical lead of Polygon Hermez zkEVM, recently told Cointelegraph that such competition in the zkEVM space is only going to make the Ethereum ecosystem more robust:
“Having different projects adds a lot of experience, and it’s also a way to test different approaches, ways of handling things or solving things,” he said.
