Welcome to one of the most essential skills in price action trading: identifying key levels. These are specific price points on a chart where the market tends to react, either by reversing, consolidating, or breaking out. For beginners, mastering key levels means you can make smarter trading decisions with just a few simple lines on your chart. In this guide, we’ll break down what key levels are, how to identify them, and how to use them with recent examples from Bitcoin (BTC) and Ethereum (ETH). Let’s dive in!
4 Types of Key Levels
Before we start, let’s understand the four types of key levels you’ll encounter:
Technical Key Levels: These are based purely on technical analysis (TA) and price action—your bread and butter as a trader.
Weekly Levels: These are tied to weekly market sessions, specifically Monday highs, Monday lows, Friday highs, and Friday lows, reflecting the opening and closing of traditional stock markets.
Psychological Levels: These are round numbers that retail traders focus on, like $100,000 for BTC or $4,000 for ETH. They’re popular because they’re easy to spot and often trigger buying or selling.
Event-Based Levels: These are tied to major market events, like Federal Reserve announcements or crypto-specific news (e.g., ETF approvals). They’re less common but can influence price action.
For beginners, we’ll focus on technical key levels and weekly session key levels in this article, as they’re the most reliable and practical for everyday trading. We’ll also use recent BTC and ETH examples to show how these levels work in real markets.
Identifying Technical Key Levels
Technical key levels are price points where the market has shown significant reactions—think strong bounces, rejections, or breakouts. To find them, you’ll create ranges on your chart, which consist of three main components: range low, range high, and mid-range. Here’s how to spot them:
Range Low: This is a swing low where the price bounces strongly after a dump. It acts as support.
Range High: This is a level where the price faces resistance, often rejecting or breaking out after a rally.
Mid-Range: Defining a mid-range is not necessarily the halfway point between the range low and range high, but rather a “loose” S/R level where price often finds reactions. Price action is almost always volatile around this key level and requires careful analysis.
Let’s walk through a step-by-step process using a recent BTC example. I will also be referring to specific dates in the images below. But since I do not want to clutter the chart, you can open your TradingView to refer to those dates if you want to follow along without any confusion!
From February to May 2025, BTC was trading in a range between $78,210.5 (range low) and $95,058.7 (range high). Now I know what you’re thinking: price has dumped to as low as $74,456.2 and pumped to as high as $97,868 (marked by the yellow semi circles), but how are those price points not considered as range low and range high? These are called “deviations” and we will explain this in the next article (you don’t need to know this yet as they are for actual trade executions, whereas identifying key levels is generally the strategy part).
Range Low ($78,210.5): From February 24 to February 28, BTC dumped from $96,536.3 to $78,210.5 with almost no sustaining buying pressure. But from February 28 to March 2, BTC bounced sharply from $78,210.5 to $95,058.7. This strong bounce confirms $78,210.5 as the range low, acting as support.
Range High ($95,078.7): Shortly after BTC rallied to $95,078.7, price failed to go any higher and rejected strongly the following days. What makes this an even stronger range high is the fact that price nearly retested the $96,536.3 price point on February 24 which triggered the sharp dump in the first place.
Mid-Range ($87,178): The middle of this range, around $87,178, saw choppy price action. It primarily acted as a “mini resistance” from March 7 to April 20 where price rejects every time it retested $87,178. But on April 21, the daily candle closed above the mid-range which showed buying strength, and the following day BTC pumped to as high as $94,000 after retesting the mid-range on market open. From there on, the mid-range acts as a support if price reverses from the range high. This is also known as a higher time frame (HTF) support/resistance (S/R) flip region, as it’s significant on both 4-hour and daily charts.
The Tricky Thing about Mid-Range
Mid-ranges can change as price action develops over time. Look at the chart below and you will see that there was another mid-range at $85,023.4 (marked by the yellow dotted line). Price found its way there after the rejection off of range high and had another strong bounce to $92,781.6 before reversing to the downside again and retesting the range low.
Figure 2. BTCUSDT.P on Bybit (1D Timeframe)
The yellow dotted line was the S/R region before April 21. But after the breakout on April 21 and more importantly the strong continuation on April 22, we now see the bigger picture – there is an imbalance of liquidity created by the buyers on April 21 and 22. At some point in the future, it is likely those areas will get filled which overlaps with the current mid-range (white dotted lines).
Anyways, the most important principle you have to remember is the more reactions the key level have seen, the more valid they are as a key level, and this is especially applicable to mid-ranges. The current mid-range of BTC as shown above still saw multiple rejections same as the previous mid-range.
What Happens If Price Breaks Out of Range?
Figure 3. ETHUSDT.P on Bybit (3D Timeframe)
From January 22, 2024 to March 3, 2025, ETH was trading in a range between $2,167.17 and $4096.21. For the longest time, the range low held strongly as an HTF support – price had bounced sharply from the range low 3 times. But on March 9, 2025, price has completely broken below the range low and failed to reclaim it the following week. This means the yellow-lined ranges are no longer in play.
In such situations, we will need to look further back to identify previous pivot points and establish our new key levels.
Figure 4. ETHUSDT.P on Bybit (1W Timeframe)
Going all the way back to January 2022, we have marked out previous pivot points and used those areas as our new key levels for ETH.
New Range Low ($877.7): Price dumped from $3,581 to $877.7 and then strong bounce from there to $2,029.4. Remember, the first swing low often serves as the range low.
New Range High ($3,581): Marked from the initial dump at $3,581 in April 2022. You can also use the previous range high at $4,096.21 (figure 4) as the current range high – there’s nothing wrong with that! However, if you look closely, you will notice the price action above $3,581 are “swing failure patterns” which you will learn in the next article along with “deviations”.
New Mid-Range ($2,155): Notice how the previous range low (figure 3) coincides with our new mid-range. Yes! More often than not, new mid-ranges come from previous range lows (if bearish) and previous range highs (if bullish).This is because it is in the nature of mid-ranges to play the critical role of S/R flip regions. Look closely and you will see that before January 2024, $2,155 was a strong resistance for ETH until it flipped support from there on until the collapse on March 9, 2025.
Now let’s bring up both the yellow and white ranges and you will see the full picture.
Figure 5. ETHUSDT.P on Bybit (1W Timeframe)
So in terms of our current play for ETH, until the current mid-range at $2,155 is reclaimed, there is a possibility that the range low, though not guaranteed, will be retested.
Identifying Weekly Session Key Levels
Weekly levels are based on significant price points from the start and end of the trading week—specifically Monday highs, Monday lows, Friday highs, and Friday lows. These levels reflect the opening and closing dynamics of traditional markets and are often respected in crypto trading as well. They’re excellent for short-term trades, helping you set precise entry points, stop-losses, and take-profit targets. Plus, they can act as liquidity zones where market makers might target stop-losses, so you’ll need to watch for potential traps.
Let’s look at a real-world example using Bitcoin (BTC) on a 4-hour chart from early May 2025. The chart marks key weekly levels from the previous week and the start of the current week, giving us a clear framework to work with.
Figure 6. BTCUSDT.P on Bybit (4H Timeframe)
Previous Friday High ($97,868.0): This was the highest price on the last trading day of the previous week (May 2). It acts as a resistance level.
Previous Friday Low ($96,306.9): The lowest price on that Friday, serving as a support level.
Monday High ($95,149.0): The highest price on Monday, May 5, 2025, acting as a potential resistance or target.
Monday Low ($93,460.2): The lowest price on Monday, serving as a key support level.
Here’s how these levels played out and how you can use them in your trading:
Friday Levels as a Range: The Previous Friday High ($97,868.0) and Low ($96,306.9) form a range that price often respects. On May 2, the price reached $97,868.0 but rejected sharply, dropping to $95,500.0 by May 3. This rejection confirms the Friday High as a strong resistance. The price then consolidated near the Friday Low ($96,306.9) on May 4, showing that this level acted as support during the decline.
Monday Levels as Support/Resistance: On Monday, May 5, the price dropped to the Monday Low ($93,460.2) early in the session, marking a significant support level. It then bounced sharply, rallying to the Monday High ($95,149.0) later that day. The Monday Low held as support when the price retested it on May 6, bouncing to $94,500.0. Meanwhile, the Monday High ($95,149.0) acted as resistance on May 7, where the price wicked above but rejected back down to $94,300.0.
Trading Application: Let’s say you’re looking to trade on May 6 after the price bounces from the Monday Low ($93,460.2). You could enter a long position at $93,600.0, targeting the Monday High ($95,149.0) or even the Previous Friday Low ($96,306.9) for a higher reward. Place your stop-loss just below the Monday Low, around $93,300.0, to protect against a breakdown. This setup gives you a high reward-to-risk (RR) ratio: the distance to $96,306.9 (2,706.9 points) is much larger than your risk (300 points), yielding a 9:1 RR.
Liquidity Traps: Notice the wick below the Monday Low ($93,460.2) on May 5, dropping briefly before bouncing. This is a classic liquidity grab—market makers likely pushed the price below to hit stop-losses before reversing. Similarly, the rejection at the Previous Friday High ($97,868.0) on May 2 trapped breakout buyers. Be cautious around these levels, as wicks often signal traps.
How to Use Weekly Levels in Practice?
If the price holds above the Monday Low ($93,460.2), look for longs targeting the Monday High ($95,149.0) or Previous Friday Low ($96,306.9). If it breaks below, consider shorts targeting the next support, like $92,500.0 (a recent swing low). For stop-losses, place them just outside the weekly levels—below the Monday Low for longs, or above the Friday High for shorts—to avoid being caught in liquidity grabs.
Tips for Weekly Levels
Mark the Levels: Use UTC timezone to identify Monday and Friday key levels. On the chart, draw lines at the highs and lows of those candles. For example, the Monday High ($95,149.0) and Low ($93,460.2) on May 5 are clear markers for the week.
Watch for Reactions: Look for rejections, bounces, or breakouts at these levels. The rejection at $97,868.0 (Previous Friday High) and the bounce from $93,460.2 (Monday Low) show how price respects these zones.
Combine with Other Levels: Weekly levels work best when paired with technical levels (like mid-ranges or HTF S/R flips). For instance, if the Monday Low aligns with a mid-range, it’s an even stronger support.
Ever since ETFs for BTC and ETH have been approved, large institutional players have become involved with trading BTC and ETH. This makes weekly levels a powerful tool for short-term trades. They give you clear targets and stop-loss zones, but always be mindful of liquidity traps, as seen with the wicks around these levels.
Conclusion
The most important principle to take away from identifying key levels in price action trading is that the more reactions a key level has seen, the more valid and reliable it becomes. Whether it’s a range low, range high, mid-range, or weekly level, the significance of a price point grows with each bounce, rejection, or breakout it experiences, as these reactions reflect the market’s memory and the involvement of both retail and institutional players.
Key levels give you clarity by giving structure to the market’s historical data. But remember, this is just the planning part. Even if you have mastered this part at identifying key levels, the actual trade executions can be very different. We will cover this in the next article.
Taiko is a ZK-EVM scaling solution for Ethereum, similar to zkSync and StarkNet. Taiko token airdrop has been confirmed and Phase 1 of the airdrop has begun! In this article, we will explain what Taiko is and how to position yourself for the $TKO airdrop.
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Taiko ($TKO) Airdrop Step-by-Step Guide
Here’s a step-by-step guide on how to get a potential Taiko ($TKO) token airdrop:
Taiko is building a decentralized and Ethereum-equivalent (Type 1) ZK-EVM. Taiko’s goal is to scale Ethereum in a manner that emulates it as closely as possible – both technologically and ideologically. They have raised $22 million across two funding rounds and launched their latest testnet (Alpha-3) in their mission to build a decentralized and Ethereum-equivalent (Type 1) ZK-EVM.
The Taiko alpha-3 testnet is the latest update and is a significant milestone on the journey towards a decentralized, Ethereum-equivalent ZK-EVM. This testnet will be critical in testing much of the network design and components. It’s also known as Grímsvötn. The primary purpose of the alpha-3 test network is to evaluate the economic design and implementation of new protocols, including new fee/reward structures.
Technical Overview of Type-1 ZK-EVM
Ethereum-equivalent ZK-Rollups, also known as ZK-EVMs, are the ideal layer-2 scaling solution as they do not sacrifice security or compatibility. Taiko aims to be a type-1 ZK-EVM, putting perfect EVM/Ethereum equivalence over ZK proof generation speed.
The various types of ZK-EVMs can be distinguished by how closely they adhere to Ethereum’s architecture at the base layer, such as the Merkle Patricia Tree for the state trees, the execution client specification, and the gas costs for each opcode.
These ZK-EVMs make compromises between compatibility and proof generation cost, with Type 1 ZK-EVMs prioritizing compatibility over cost. This type is also known as “Ethereum-equivalent” because it does not alter any aspect of the Ethereum architecture, including the hash function, state trees, and gas costs. This allows existing execution clients to be reused with minimal modifications.
Who is the Team behind Taiko?
Taiko Labs is co-founded by Daniel Wang, the founder and former CEO of Loopring — an EVM DEX protocol powered and scaled by zero-knowledge proof technology. In July 2022, Wang brought in Brecht Devos, his former Chief Architect at Loopring, to lead the project’s zero-knowledge research and development team. As of now, the company has more than twenty people across thirteen countries with most people having an engineering and cryptography background.
Does Taiko have a Token?
Yes, Taiko Labs confirmed it in their white paper that they will have a Taiko Token ($TKO). The protocol mints $TKO to reward block verifiers. The token is transparent to L2 users, providing a seamless user experience equivalent to that on the Ethereum chain.
Users will pay transaction fees in ETH, and block proposers will receive these fees for each block they successfully propose. In return, block proposers must burn a certain amount of $TKO to participate in the protocol, and pay ETH to Ethereum validators for block inclusion in L1 blocks.
Taiko launched their Alpha-1 Testnet in late December 2022. It consists of two networks: Taiko A1, a fully decentralized Ethereum-equivalent ZK-Rollup, and Ethereum A1, the latter serving as the L1 network. The testnet includes L1 and L2 nodes with the Taiko protocol contracts deployed and a mining interval of 12 seconds. In their user document, Taiko has a guide for what users can do in the testnet, which strongly hints at a potential airdrop strategy.
On 22nd May 2024, Taiko ($TKO) launched its Phase 1 airdrop, with 5% of the initial token supply up for grabs!
The best way to receive $TKO airdrop is to bridge tokens between Ethereum A1 and Taiko A1, deploy smart contracts, and run a node. Completing these steps puts you in a great position to be eligible for an airdrop. Here’s a step-by-step guide:
You can automatically add Taiko A1 and Ethereum A2 to your MetaMask at their wallet configuration page. If it doesn’t work, you can instead manually add the networks at their RPC configuration page.
Claim Faucet Tokens
After adding the network to your MetaMask, you will need testnet tokens to interact with their protocol. Go to l1faucet.a1.taiko.xyz for Ethereum A1 ETH, and l2faucet.a1.taiko.xyz for Taiko A1 ETH. You will need to make a Tweet and put your wallet address in the post. Copy your Tweet’s link and paste on the request box as shown in the image below. This is to prevent bots from abusing the faucet.
Bridge Testnet Tokens
Now you can use the bridge to transfer assets between Ethereum A1 and Taiko A1. As a prerequisite, you will need some testnet ETH on either A1 networks. Some transfers may take a while, but you can check your transactions in their bridge contracts.
Deploy a Smart Contract to Taiko A1
You will need to install Foundry to deploy a smart contract on Taiko A1. You only need to have the private key to an account that has some ETH on Taiko A1 to pay the small transaction fee for deploying the contract. It should only take about 15 minutes. Taiko has a complete guide on this here.
Run a Node on Taiko
According to the team, this is the most important part of the testnet, as Taiko is a community-driven protocol. This step alone has the highest chance to get you qualified for a potential airdrop. The complete guide is on their user document. But if you are still confused, a contributor on their Discord channel posted a detailed guide on setting up a node for windows.
Add these 2 token contract addresses to your wallet: Bull Token — 0x6048e5ca54c021D39Cd33b63A44980132bcFA66d and Horse Token — 0xCea5BFE9542eDf828Ebc2ed054CA688f0224796f.
Transfer tokens from Sepolia to Taiko A2. To do this, go to the “Bridge” tab, choose the Sepolia Network, and choose your token type and amount. Then, click on “Bridge”. Remember to also transfer the $HORSE and $BLL tokens!
Transfer tokens from Taiko A2 to Sepolia. This is basically the same steps as point 5 above.
How to Receive Potential $TKO Airdrop for Taiko Alpha-3 Testnet
Here’s how to potentially receive an airdrop in Taiko’s Alpha-3 Testnet:
Connect your wallet to the Taiko Faucet and mint 50 Bull ($BLL) and 50 Horse ($HORSE) tokens. If you don’t see these tokens in your Metamask it may be because you have not added the token address. Click “Import tokens” on your Metamask and input the token details.
Go to Taiko Bridge and bridge $ETH, $BLL and $HORSE from the Sepolia to Taiko network. You may need to increase the gas in order to avoid the transaction failing.
Claim your transfer by going to the Transaction page and clicking “Claim”. Then, confirm the transaction on Metamask.
Complete tasks on Taiko’s Galxe page. Tasks include answering their quizzes, bridging and swapping funds.
Taiko Quiz Answers
Here are the answers for the Taiko Quizzes on their Galxe page:
Taiko is currently running Season 1 of their Trailblazers campaign which will end on 16th September 2024. As Taiko has launched its mainnet, you would usually need to use real funds to complete the tasks for the potential airdrop. However, with our EXCLUSIVE tips and tricks, you can farm the Taiko airdrop for FREE! Here’s how to farm the Taiko potential airdrop for free:
Play Crack & Stack. Crack & Stack is a PvP game that rewards you in ETH for mining as quickly as possible and avoiding the goblins. You have 10 free games per day.
With your earned ETH, transact on platforms such as World of Dypians and 0xAstra.
Transact on World of Dypians by claiming the free boxes.
Transact on 0xAstra by collecting daily logins.
You can also use the ETH earned in Crack & Stack to cover any transaction fees on Taiko mainnet. This way, you will not need to bridge your ETH to Taiko or deposit real funds to the platform.
TIP: On Crack & Stack, the objective is to mine as fast as you can. However, do not be greedy until you have around 20 seconds on the timer as you want as much movement speed as you can. Your inventory space will start flashing yellow so your movement speed will be a little bit slower, but not slow enough for people to kill you. It also does not matter if you die in the game because you will still earn ETH on your wallet.
Taiko token airdrop eligibility criteria?
Taiko proposers, provers, bridgers, users (including Galxe users) and developers are eligible for the Taiko token airdrop. GitHub contributors and Loopring community members that meet the specified conditions are also eligible. Note however the activities are weighted and a score is assigned to them. You will only be eligible if you meet the minimum score and any conditions set by the Taiko team.
How to check your eligibility for the Taiko token airdrop?
Here’s how to check your eligibility for the Taiko token airdrop:
Connect your wallet (e.g. MetaMask) and GitHub account, if any.
Bind your wallet and GitHub account.
Note that users have 7 days i.e. until 30th May 2024 to check their eligibility. Once the claim window is open, eligible users will have 1 month to claim their TKO tokens.
Airdrop Review
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: Taiko has a guide for what users can do to interact with their testnet, which strongly hints at a potential airdrop strategy.
Airdropped Token Allocation: Taiko confirmed they will have a token known as $TKO, but the tokenomics are unknown.
Airdrop Difficulty: The latest Taiko Alpha-3 Testnet only requires you to use testnet funds to bridge, which is relatively simple. Deploying a smart contract and running a node on Taiko however, may need a bit more technical knowledge.
Polygon recently launched its own zkEVM mainnet, and co-founder Sandeep Nailwal hinted on Twitter that there could be a MATIC airdrop for users! In this article, we will briefly explain what Polygon zkEVM is and what you can do to position for a potential airdrop.
Polygon zkEVM Airdrop Step-by-Step Guide
Here’s how to get the Polygon zkEVM Airdrop:
Add Polygon zkEVM to MetaMask
Bridge to Polygon zkEVM
Interact with Polygon zkEVM DApps
BONUS: trade on Satori Finance
DOUBLE BONUS: Join in the zkEVM saga with Intract x Polygon to get free NFTs
Polygon zkEVM is a Layer-2 scaling solution for Ethereum that leverages the scaling power of zero-knowledge proofs while maintaining Ethereum compatibility, similar to zkSync and Linea. Developers and users on Polygon zkEVM can use the same code, tooling, and apps that they use on Ethereum, but with much higher throughput and lower fees. This allows Ethereum-based DApps to scale more efficiently, which is critical for mass adoption of DeFi.
What’s the Difference Between Polygon zkEVM and Polygon?
The original Polygon functions as a sidechain that runs parallel to the Ethereum mainnet, whereas Polygon zkEVM uses a ZK-Rollup architecture that is built on top of Ethereum. The key distinction is that Polygon is EVM compatible but Polygon zkEVM has total EVM equivalence. The latter is focused on being a near-perfect replica of Ethereum’s execution environment, which means it uses ETH instead of MATIC for gas fees.
Is There an Airdrop for Polygon zkEVM?
Yes, it is very likely there will be an airdrop for Polygon zkEVM users. Sandeep Nailwal, co-founder of Polygon, strongly hinted on Twitter that there will be a huge MATIC airdrop for zkEVM users. He also compared the current development of Polygon zkEVM to Arbitrum, which took more than a year to mature. This means that we are currently at the early stage, allowing users plenty of time to perform on-chain activities that would qualify them for the airdrop!
How to Get the Polygon zkEVM Airdrop?
The best way to get the MATIC airdrop is to interact with the Polygon zkEVM mainnet. Here’s a step-by-step guide:
Add Polygon zkEVM to MetaMask
Go to ChainList and add Polygon zkEVM to MetaMask. It is launched on Mainnet Beta, which means you will need ETH for gas fees.
Bridge to Polygon zkEVM
If you have funds on the Ethereum network, you can bridge ETH from Ethereum to Polygon zkEVM via the Native Bridge.
Alternatively, if you have funds on Arbitrum and/or gas fees are too high, you can also use other third-party bridges recommended by Polygon, such as Orbiter Finance. Using Orbiter Finance, in particular, refunds 60% to 70% gas fees back to you.
Interact with Polygon zkEVM DApps
Here are the top DApps in Polygon zkEVM ranked by total value locked (TVL). Try to perform transactions consistently every week as frequency of smart contract interaction is an important criterion to qualify for the airdrop:
Here’s how to interact with Quickswap. First, connect your wallet to Quickswap Exchange. Make sure you have switched the network on Polygon zkEVM. Then, go to the Swap section and (1) Swap ETH for USDC; and (2) Swap the same amount of ETH for WETH. Afterwards, go to their Pool, select ETH and USDC tokens as the token pair, approve the tokens and add liquidity.
Interact with Kokonut Swap.
Here’s how to interact with Kokonut Swap. First, connect your wallet to Kokonut Swap. Make sure you have switched the network on Polygon zkEVM. Then, go to their Swap page and swap ETH to USDC.
Interact with Dove Swap
Here’s how to interact with Dove Swap. Connect your wallet to Dove Swap and make sure you are on the Polygon zkEVM network. Then, swap ETH for USDT.
Interact with Mantis Swap.
Interact with Mantis Swap by going to their website. Then, connect your wallet and make sure you are on the zkEVM network. Finally, swap USDC to USDT.
Interact with 0vix
To interact with 0vix, connect your wallet to their website and make sure you are on the Polygon zkEVM network. On the Supply Markets, supply a small amount of ETH and click “Supply”.
BONUS: Trade on Satori Finance
Satori Finance is a protocol on Polygon zkEVM (as well as zkSync, Linea and Scroll). To trade on Satori Finance, connect your wallet to https://satori.finance/, making sure that you are on the Polygon network. Then, go to “Portfolio” and deposit some trades. Next, go to the “Trade” tab and do some trades.
DOUBLE BONUS: Join in the zkEVM saga with Intract x Polygon to get free NFTs
Connect your wallet to the Quest Page and complete the tasks to get a free NFT. Tasks include signing messages, following social accounts and posting Tweets. Finally, click “Get your NFTs” and follow the instructions on your wallet to mint your free NFT. Note you will need to pay gas fees in ETH
Airdrop Review
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: Although not confirmed, it is very likely there will be a MATIC airdrop for Polygon zkEVM users, according to Sandeep Nailwal.
Airdropped Token Allocation: There is no confirmation on the token allocation, but Nailwal said that it would be a “massive” airdrop.
Airdrop Difficulty: Simply bridge to Polygon zkEVM and interact with QuickSwap and other high TVL DEXes. You will need real ETH to perform these tasks.
Token Utility: MATIC is the native token of the Polygon blockchain. Although Polygon zkEVM uses ETH for gas fees, it is likely MATIC will be airdropped as rewards.
Arbitrum will airdrop over 1 billion $ARB tokens to its protocol users on March 23, 2023. The snapshot was taken in February, and at least three criteria must be met to qualify for the airdrop. Find out if you’re eligible and how to claim your Arbitrum token airdrop below.
Arbitrum is a layer-2 scaling solution designed to lower network congestion and transaction costs of Ethereum by offloading tons of computation and data storage from the main chain. It does this via the use of optimistic rollup — transactions on Ethereum are bundled up and transferred to a proprietary sidechain on Arbitrum (a secondary blockchain connected to the main chain). The transactions are then processed and sent back to the main chain after validation.
The optimistic rollup is the core element of Arbitrum. For those who do not know what an optimistic rollup is, we got you covered with a simple explanation.
Optimistic rollups assume all transactions as valid, hence an “optimistic” outlook. There is a time period during which users can dispute any suspicious transactions contained in a bundle. If a fraudulent transaction is detected, a fraud proof is executed which basically runs the correct transaction computation using the data on the main chain.
Since optimistic rollups do not perform any computation by default, it offers massive improvements in scalability. On the downside, potential fraud challenges of optimistic rollups could lead to delays in transactions, since progress comes to a halt until it the dispute is resolved.
Arbitrum’s Version of Optimistic Rollup
To provide context, optimistic rollups are compatible with the Ethereum Virtual Machine (EVM) and Solidity, which allow developers to port Ethereum-native smart contracts to rollups or even use existing tooling to create new decentralized applications (DApp). But for Arbitrum, it has its own virtual machine called Arbitrum Virtual Machine (AVM).
Arbitrum’s AVM greatly improves optimistic rollups because it stores very little data on-chain for optimal scalability. Moreover, to address potential delays due to fraud challenges, the AVM uses pipelining to process multiple disputes, while verification nodes help speed up the process.
This is called multi-round fraud proofs. Arbitrum uses a fine-combing approach to verify fraud proofs. It focuses on a particular point of disagreement over transaction history. Additionally, layer-2 transactions are not entirely executed on the main chain, rendering gas block limits irrelevant. As a result, this translates to higher network performance.
Who is the Team behind Arbitrum?
Arbitrum is developed by Offchain Labs, a New York-based startup committed to building innovative Ethereum scaling solutions. The company originated from the computer science research department of Princeton University, co-founded in 2018 by Harry Kalodner, Steven Goldfeder, and Ed Felten.
Arbitrum’s layer-2 network allows developers to build and deploy highly scalable smart contracts at low cost, while benefitting from Ethereum’s robust layer-one security. Since its launch last year, the Arbitrum ecosystem has greatly expanded, ranking 6th in all chains total value locked with 129 integrated protocols.
Some of the top decentralized finance (DeFi) protocols include Uniswap, Curve, Aave, Balancer, and SushiSwap. Additionally, Arbitrum is not without its native protocols built on the blockchain which include GMX, Radiant, Dopex, and Vesta Finance.
$ARB Token
$ARB will solely function as a governance tool for the Arbitrum protocol, unlike ETH which is used to pay fees on both Ethereum and Arbitrum. The governance process of Arbitrum DAO will be autonomous, allowing votes to directly modify the core code of Arbitrum.
The total supply will be 10 billion, with the Arbitrum community controlling 56%. The airdrop will distribute 12.75% (i.e. 1.275 billion $ARB) to eligible users on 23rd March 2023. The rest of the community tokens will be allocated to a treasury governed by the Arbitrum DAO, allowing ARB holders to vote on fund disbursement.
The remaining 44% will be given to Offchain Labs’ investors and employees, who developed Arbitrum. These tokens will be subject to lock-up periods and vesting schedules. Notably, the proportion of ARB reserved for insiders is higher compared to similar projects, such as Optimism, which allocated 36% of its OP tokens to investors and core contributors.
$ARB Airdrop Eligibility: How to claim Arbitrum $ARB token airdrop
According to Nansen, 625,143 wallet addresses are eligible for the Arbiturm $ARB token airdrop. You can check on arbitrum.foundation to see if you are eligible. If you are eligible, Arbitrum will directly airdrop to your wallet on 23rd March 2023. There are 6 airdrop criteria, and at least 3 must be met based on a snapshot taken on 6th February 2023 in order to qualify for the airdrop:
Bridge to Arbitrum
Bridged assets into Arbitrum One or Arbitrum Nova.
Transactions Over Time
Conduct transactions at least 2 months prior to the snapshot taken in February. The longer the timeframe, the more tokens you will receive.
Transaction Frequency and Interaction
Conduct more than 4 transactions or interact with more than 4 smart contracts. The higher the number, the more tokens you will receive.
Transaction Value
Conduct transactions with more than $10,000 in aggregate value. The higher the value, the more tokens you will receive.
Assets Bridged to Arbitrum One
Deposit more than $10,000 worth of assets to Arbitrum One. The more assets you deposit, the more tokens you will receive.
Activity on Arbitrum Nova
Conduct more than 3 transactions on Arbitrum Nova. The more transactions are carried out, the more tokens you will receive.
How to claim Arbitrum ($ARB) token faster?
Arbitrum has confirmed its airdrop can be claimed on 23rd March 2023 when the Ethereum chain reaches block 16890400. It is very likely that the Arbitrum network will be very congested during that time as users are anxiously waiting to get their tokens to potentially trade on exchanges. However, there are ways to be faster at the Arbitrum airdrop claim, and how to buy, sell or trade your $ARB before anyone else. Note however this carries risks. You may risk ending up being slower than others, lose your gas fees and even your $ARB, so proceed with caution. Here’s how you can potentially claim your $ARB tokens faster and buy, sell, or trade your $ARB before others:
Make your own RPC endpoint on Alchemy.
Pre-approve the token contract.
Have sufficient ETH ready.
Know where to trade $ARB.
Make your own RPC endpoint on Alchemy
Here’s how to make your own RPC endpoint on Alchemy:
Create an app for Arbitrum. Make sure you select “Arbitrum” under “Chain”.
Click “View Key” on the main page. There, you will get an RPC https URL.
Add a network on MetaMask. Go to “Settings”, “Networks”, “Add network” and “Add network manually”. Under “New RPC URL”, enter the RPC https URL from Alchemy. Then under “Chain ID” enter 42161, “ETH” as the Currency Symbol, and “https://arbiscan.io” under Block Explorer.
Pre-approve the token contract
To be even faster than everyone else in claiming $ARB, you can pre-approve the Arbitrum token contract on protocols such as 1inch and Uniswap. To do this, go to the $ARB smart contract and click “Write as Proxy”. Then, connect your wallet. Under spender, fill in the address for either Uniswap or 1inch. Finally, fill in the number of $ARB you want to trade with that smart contract. For example, filling in 20000000000000000000000 will mean you are approving 20,000 $ARB to be traded.
Have sufficient ETH ready
This is to pay for gas fees when trading $ARB. Note you will have to bridge your ETH to Arbitrum.
Know where to trade $ARB
These exchanges have confirmed they will offer trading for $ARB:
Will there be another Arbitrum $ARB token airdrop?
Arbitrum’s latest Tweet announces a return of the Arbitrum Odessey. The Arbitrum Odessey was a 7 week journey filled with tasks to complete in order to obtain badges. These badges are NFTs which may lead to future rewards.
The upcoming round of Arbitrum Odyssey will begin on 26th September at 12:00pm EDT.
Arbitrum Odyssey: How to guide
The Arbitrum Odyssey is a new round of activites involving the Arbitrum ecosystem and a chance to collect custom badges starting on 26th September at 12:00pm EDT. There is speculation that participating in this 7-week journey may result in a potential airdrop as a reward. Here’s our ultimate how to guide to completing the tasks on the Arbitrum Odyssey.
Week 1- Enter the Odyssey
Go to the Arbitrum Galxe Page and complete any of the following tasks in their list. Then, mint your Enter The Odyssey NFT.
Week 2- Signs of Life
Here’s our how to guide for completing the tasks on week 2 of the Abritrum Odyssey
Complete tasks on Tofu NFT Galxe page. This includes following their Twitter and selling/buying an NFT on their platform.
To sell/buy an NFT on Tofu NFT, go to https://tofunft.com/arbi and connect your wallet. Scroll down to “Discover” and apply the following search filters: Type- Fixed price, Sort- Price: Low to High. Buy the cheapest NFT or list some NFTs for sale.
Mint your Signs of Life NFT.
Complete Pulsar in the Distance task on Galxe. Connect your wallet to Abroad Exchange. Deposit funds by clicking on the top right-hand corner and “Deposit”. Then, make a perpetual trade on Abroad Exchange. Be careful when trading because you may be at risk of liquidation, and you will be using real funds! Mint your Pulsar in the Distance NFT.
Week 3- Pulsar in the Distance
Here’s our how to guide for completing the tasks on week 3 of the Abritrum Odyssey
Go to Abroad Exchange and deposit funds on the exchange. Then, make a perpetual trade. Note that you will be using actual funds for this. Finally, return to their Galxe page and mint your NFT.
Arbitrum Airdrop Review
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: Arbitrum will airdrop $ARB to eligible users on 23rd March 2023.
Airdropped Token Allocation: 1.275 billion $ARB (12.75% of the total token supply) will be distributed in this airdrop.
Airdrop Difficulty: The criteria listed are fairly easy to complete.
Token Utility: The token will solely function as a governance tool for the Arbitrum protocol.
Token Lockup: 44% of the tokens allocated to the team and investors are subject to a 4-year lockup.
Frequently Asked Questions (FAQs)
What is Arbitrum?
Arbitrum is a layer-2 scaling solution. It aims to reduce Ethereum’s network congestion and transaction costs. Arbitrum does this by offloading computation and data storage from the main chain.
When is the Arbitrum token launch?
The Arbitrum token was launched on 23rd March 2023.
How do I claim Arbitrum ($ARB) tokens?
Arbitrum will airdrop $ARB tokens directly to your eligible wallet address via MetaMask, Trust Wallet, Coinbase Wallet, Brave or Ledger.
How to be eligible for the Arbitrum ($ARB) airdrop?
There are 6 airdrop criteria, and you must meet at least 3 to qualify for the airdrop: (1) bridged to Arbitrum One or Arbitrum Nova, (2) conduct transactions at least two months before the snapshot in February, (3) conduct at least 4 transactions or interact with at least 4 smart contracts, (4) conduct transactions with at least $10,000 in aggregate value, (5) deposit at least $10,000 on Arbitrum One, (6) conduct at least 3 transactions on Arbitrum Nova.
How do I check if I am eligible for the Arbitrum ($ARB) airdrop?
To check your eligibility, go to arbitrum.foundation and connect your wallet. Then click “Check eligibility”.
When can I claim the Arbitrum $ARB token airdrop?
the $ARB token airdrop can be claimed on 23rd March 2023 when the Ethereum chain reaches block 16890400
What is the fastest way to claim the Arbitrum $ARB token airdrop?
Here’s how you can potentially claim your $ARB tokens faster and buy, sell, or trade your $ARB before others: 1. Make your own RPC endpoint on Alchemy. 2. Pre-approve the contract. 3. Have sufficient ETH ready. 4. Know where to trade $ARB.
Note however this carries risks. You may risk ending up being slower than others, lose your gas fees and even your $ARB, so proceed with caution.
Where can I buy Arbitrum token?
You can buy, sell or trade the Arbitrum token on following cryptocurrency exchanges: ByBit (Sign up here!), Binance, Bitfinex, Kucoin, OKX, Bitmart, Bitfinex, Huobi, Bitget, Bitrue, Gate.io, MEXC.
What is the Arbitrum token price?
As of 24th March 2023, Arbitrum token price is US$1.40. Its all-time high price was US$8.67, and an all-time low of US$1.11.
What is the Arbitrum token contract?
The Arbitrum token contract is: 0x912ce59144191c1204e64559fe8253a0e49e6548
Orbiter Finance is the hottest bridge for emerging layer-2 blockchains right now. They have confirmed they will issue a token. No airdrop has been officially announced yet, but it IS hinted. This means that no snapshot has been taken yet, and early users can potentially earn huge airdrop rewards. In this article, we will explain what Orbiter Finance is and what you can do to position yourself for their potential airdrop.
Orbiter Finance is a decentralized bridge that supports cross-rollup transfers between Ethereum and other layer-2 blockchains such as zkSync and Arbitrum. Users can move ETH, USDC, USDT, and DAI between those supported networks.
It is secured by a series of smart contracts that involves two roles: Sender and Maker. The Maker provides liquidity for the transfer initiated by the Sender. If the Maker does not carry out their role, the Sender can initiate an arbitration request to the contract with the Maker’s margin and receive compensation for any excess losses.
Does Orbiter Finance have a Token?
Orbiter Finance does not have a token yet, as they are currently focusing on developing the protocol and improving user experience. However, in a recent Tweet, they strongly hinted at issuing a token as well as a possible airdrop. Moreover, Orbiter Finance has closed its first round of funding with participation from Tiger Global, A&T Capital, StarkWare, and even Vitalik Buterin. As such, DeFi projects backed by major players tend to launch a token after product completion.
How to Receive Potential Orbiter Finance Token Airdrop?
The best chance to receive Orbiter Finance token airdrops is to bridge ETH or stablecoin assets between the 11 supported networks. Here’s how to get a potential Orbiter Finance airdrop:
Connect your MetaMask or other Ethereum/Polygon/zkSync/Arbitrum wallet.
Select the chain you want to send your assets to.
Complete the transaction.
Although it is recommended to bridge assets frequently to increase your airdrop chances, there will be a transaction fee. However, Orbiter will modify its fees based on the Gwei of the destination network to maintain a fee that is below the average, but this will not happen frequently due to the volatile nature of gas fees. The sender can view the current fee on the Orbiter website.
Get Discord Roles
Get higher ranking roles on Orbiter Finance’s Discord by completing tasks on their Guild page. The requirements for the Orbiter Finance roles are as follows:
Trainee Pilot: Complete 3-9 transactions on Orbiter Finance.
Pilot: Complete 10-49 transactions on Orbiter Finance.
Elite Pilot: Complete 50-99 transactions on Orbiter Finance.
Expert Pilot: Complete 100-499 transactions on Orbiter Finance.
Ace Pilot: Complete 500 transactions or more on Orbiter Finance.
You can check the number of transactions by connecting your wallet here. Note that the allowlist is only updated once a week on Mondays, so you will need to check the Guild page frequently. You must have a role of Trainee Pilot or above in order to be included in their allowlist.
Claim Orbiter Pilots NFT
Orbiter has created an NFT series for Orbiter Pilots (i.e. Orbiter users). There are 5 NFTs based on your Discord role. To claim your Orbiter Pilot NFT, connect your wallet to their Galxe Page and click “Claim”. Note you will need MATIC to pay for gas fees when claiming your NFTs.
Airdrop Review
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: There is no confirmation of a token launch and airdrop by Orbiter Finance, but they hinted in their Tweet that they are considering issuing a token as well as a potential airdrop.
Airdropped Token Allocation: Since there is no token launch yet, tokenomics data are not available.
Airdrop Difficulty: If there is a potential airdrop, the steps to be eligible is fairly easy. All you have to do is connect your wallet on their platform and bridge assets to another chain. It is recommended to do this frequently, but be cautious of transaction fee.
Token Utility: Since there is no token launch yet, token metrics are not available.
Token Lockup: Since there is no token launch yet, tokenomics data are not available.
ether.fi is a liquid staking protocol that is currently conducting its Early Adopter Programme. Users who staked ETH on the platform can earn bonus points, which could translate to an airdrop once the token is launched. The snapshot will be taken in mid-April, so don’t miss it!
ether.fi is a decentralized staking protocol that allows users to earn rewards by delegating staking to node operators. It is unique in that it is the only liquid staking protocol where stakers keep control of their keys while delegating staking to node operators and earning rewards. Users can deposit their ETH, wstETH, rETH, cbETH, sfrxETH into their Early Adopter Programme and earn rewards.
The project’s smart contracts have been audited by reputable blockchain security firms CertiK and Zellic. They have also implemented a bug bounty program to incentivize security researchers to find vulnerabilities in their smart contracts.
Project Funding
Ether.fi has completed a $5.3 million funding round co-led by investors North Island Ventures (NIV) and Chapter One. The funding will be used to hire more engineers for the team and pursue further partnerships in addition to its current relationships with node operators such as Kiln and Finoa.
Does ether.fi Have a Token?
Yes, ether.fi is planning to launch its liquid staking derivative token $ETHFI. It will also function as a governance tool for the community.
How to Get the $ETHFI Airdrop?
As part of the ether.fi Early Adopter Programme, users who have staked ETH on the platform can earn bonus points, which could translate to an airdrop once the token is launched. The snapshot will be taken mid-April. Here’s a step-by-step guide:
Connect Your Wallet to ether.fi
Connect your MetaMask or other supported wallets to the ether.fi mainnet. Make sure the page is on “Early Adopter”. You can see this on the top middle of the screen.
Stake ETH or ETH-pegged Assets
You can stake ETH, rETH, cbETH, wstETH or sfrxETH on their Early Adopter Pool to earn loyalty points. The deposit amount may not be lower than 0.1. Once ether.fi is fully launched, you will be able to migrate your deposit to EtherFi staking.
Loyalty points will help boost your staking rewards when ether.fi mainnet launches on 2nd May 2023.
When ether.fi mainnet launches on 2nd May 2023, your staking rewards will be increased if you decide to stake with them and have loyalty points. There may also be a potential for extra airdrop!
Keep in mind your points will reset after each deposit. You can withdraw at any time with no penalty, but you will lose your bonus points in doing so.
Airdrop Review
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: ether.fi is currently conducting its Early Adopter Programme. Users who have staked ETH on the platform can earn bonus points, which could potentially convert to an airdrop upon the token’s launch.
Airdropped Token Allocation: Their tokenomics is not yet available.
Airdrop Difficulty: All you have to do is stake ETH or ETH-pegged assets on the platform. Make sure you have enough ETH to cover gas fees.
Token Utility: $ETHFI is a liquid staking derivative token which also functions as a governance tool for the protocol.
Token Lockup: Their tokenomics is not yet available.
EchoDEX is built on the Linea Network, a zero-knowledge Ethereum Virtual Machine incubated by ConsenSys. The testnet has recently launched, and the team has confirmed that users can earn $ECP airdrops by using the protocol!
EchoDEX ($ECP) Token Airdrop Step-by-Step Guide
Here’s how to get the EchoDEX ($ECP) token airdrop:
Connect to Linea Goerli Test Network
Claim Faucet Tokens on EchoDEX Testnet
Swap Tokens
Provide Liquidity
Mint NFT
Send Tweet and Wallet Address to Discord Testnet Proof Channel
EchoDEX is a decentralized exchange platform built on the Linea Network (formerly ConsenSys zkEVM). It is designed for fast and secure trading of cryptocurrencies with low fees. The platform features aggregator liquidity, which combines multiple liquidity pools from various platforms or exchanges to offer a more competitive rate to traders.
In addition to trading, EchoDEX offers users the opportunity to earn $ECP tokens through various means, including swapping their cryptocurrencies, participating in their farming program, or staking their tokens. EchoDEX provides a reliable and convenient trading experience for all crypto enthusiasts with its user-friendly interface and top-notch security protocols.
Does EchoDEX Have a Token?
Yes, EchoDEX’s native token is $ECP. Although there are no released tokenomics, EchoDEX already uses it as an incentive reward as part of its “Swap to Get $ECP” program. Users who trade crypto can earn $CEP that will be airdropped directly into their wallet. The more trades you make, the more you earn!
How to Get the EchoDEX ($ECP) Token Airdrop?
The best way to get the $ECP token airdrop is to interact with the EchoDEX testnet. Here’s a step-by-step guide:
Connect to Linea Goerli Test Network
Go to the EchoDEX testnet and connect your MetaMask wallet. Switch the network to Linea Goerli Test Network or manually add it on ChainList.
Claim Faucet Tokens on EchoDEX Testnet
On the EchoDEX Faucet page, you must first follow their Twitter and join their Discord. After doing so, you can claim 0.03 LineaETH once per day.
Swap Tokens
Use the Swap feature. If you encounter gas issues, try swapping again or wait until you can claim more faucet tokens to cover gas fees.
Provide Liquidity
Deposit your token pairs at the Liquidity Pool page. As a liquidity provider, you can earn swap fees.
Mint NFT
Claim a free EchoDEX NFT to mark your place in the EchoDEX community! Remember to import the NFT address to your MetaMask in order to view it:
Send Tweet and Wallet Address to Discord Testnet Proof Channel
Like and retweet EchoDEX’s Tweet about the testnet steps. Tag three friends, then take a screenshot and send it to the Discord Testnet Proof Channel.
Airdrop Review
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: EchoDEX has confirmed airdropping $ECP tokens as part of its “Swap to Get $ECP” program.
Airdropped Token Allocation: The total token supply is yet to be revealed.
Airdrop Difficulty: Simply swap tokens, provide liquidity, and mint an NFT to earn $ECP airdrops. Follow EchoDEX on Twitter, like and retweet their testnet tweet, and tag 3 friends. Take a screenshot and send it to the Discord Testnet Proof Channel, along with your wallet address.
Token Utility: The team will announce the details of the $ECP token soon.
Ethereum 2.0 (Formerly known as ETH2) is a series of upgrades to the Ethereum Blockchain which will improve its speed, efficiency, and scalability. This will allow Ethereum to handle significantly more transactions, improve smart contract stability and reduce network fees. Upon reaching the final phase of the upgrade, Ethereum will meet its goals of becoming a transparent and open network for Decentralized Finance (DeFi). This article breaks down the roadmap for this upgrade and key milestones of when they are released. The next big update coming in the second half of 2023 is the “Shanghai upgrade” which will have a significant economic impact.
What is Ethereum 2.0?
Ethereum 2.0 will involve sharding to drastically increase network bandwidth and reduce gas costs, making it cheaper to send cryptocurrencies and interact with smart contracts. There will be fundamental economic changes too, Ethereum 2.0 will allow support to stake nodes and to earn Ethereum as passive income. The Ethereum 2.0 upgrade will be done in 3 distinct phases starting with Phase 0 (after all, developers count from 0 instead of 1). Over the past few years, opponents of Ethereum have often criticized the network’s high transaction costs and fragility during peak usage. This guide will cover the timeline for the upgrade to ETH2.0 and the solutions proposed.
Ethereum 2.0 Key features and what you need to know video
Key Features of Ethereum 2.0
Efficiency – Ethereum will become 99.95% more energy efficient. It is estimated that after the upgrade, the network will no longer require an entire country’s worth of power.
Sharding – Ethereum will be broken into 18 “Shards” that operate simultaneously. This will drastically improve efficiency.
Staking – Ethereum will move to Proof-of-Stake Consensus, so everyone can stake and help secure the network.
Security – Compromising the network will become much more expensive under Proof-of-Stake. 51% of attackers will also be easily identifiable with validator addresses and can be forked away from the network.
The 3 Phases of Ethereum 2.0
Ethereum 2.0 will be launched in 3 phases:
Phase 0- Beacon Chain – Completed in 2020
Phase 1- The Merge – Completed September 2022
Phase 2- Sharding
Phase 0: Beacon Chain
Launched on 1st December 2020, the Beacon Chain introduced Proof-of-Stake to the Ethereum ecosystem. The purpose of the Beacon Chain is to coordinate the Ethereum network and serve as the consensus layer. This Beacon chain is necessary to generate the randomness that actual proof of stake uses. It also acts as a crucial precursor to upcoming phases such as sharding.
The Ethereum Merge was completed on the 15th of September 2022. This merged the Beacon chain from phase 0 into the original proof-of-work mainnet (i.e. the “execution layer”, formerly known as “Eth1”). After the Merge is completed, ETH1 and ETH2 become the same network that uses the same ETH coin. Why the merge is so important and such a difficult task because it involved switching consensus mechanisms. An analogy for this would be switching the engine of a car from a gas to an electric-powered engine – whilst the car is still moving.
The Merge made the Ethereum network substantially more energy efficient as it no longer required cryptocurrency miners that consumed a huge amount of electrical power. It is calculated that there is an incredible 99.988% reduction in the energy necessary to run the network, meaning that current Ethereum Staking Nodes are incredibly energy efficient. It will also set the stage for future upgrades to the scalability of Ethereum such as sharding.
Phase 2: Sharding
By then, the Beacon Chain has already been launched and merged with the Ethereum Mainnet. The next stage will introduce sharding to the Ethereum Network.
Sharding on Ethereum means the database would be split horizontally to spread the load. Sharding will work together with layer 2 rollups. This divides the burden of handling large amounts of data needed by rollups over the entire Ethereum network.
Ethereum Sharding is realistically expected to be released in 2024.
Main features of sharding:
Everyone can run a node: Validators will no longer need to store all the data themselves. This drastically reduces the cost of storing data on layer 1 by reducing the hardware requirements.
More network participation and security: With sharding, you will be able to run Ethereum on a laptop or phone. This means more participation, greater decentralization, and more security.
What are layer 2 rollups?
Layer 2 rollups are an existing “layer 2” technology. This allows decentralized applications (dApps) to “roll up” transactions into one off-chain for submission. The effect of this is that it reduces the data needed to execute a transaction.
The combination of layer 2 rollups and sharding is what will achieve a transaction speed of 100,000 tps.
3 upgrades have been introduced since the launch of the Beacon Chain on 1st December 2020: the Berlin upgrade, London upgrade, Altair upgrade and Shanghai upgrade.
The Berlin upgrade was launched on 15th April 2021 and optimized gas costs for some EVM actions and increased support for several transaction types. The London upgrade was launched on 5th August 2021 and reformed the transaction fee market for the ETH 1.0 chain via EIP-1559 and removed or reduced gas fees for specific functions (Learn more about the London upgrade). The Altair upgrade was launched on 27th October 2021 and is the first scheduled upgrade for Ethereum’s Beacon Chain. It added support for “sync committees” which enabled light clients, brought validator inactivity, and slashed penalties up to their maximum values.
The Ethereum network’s Shanghai upgrade (also known as Shapella) was successfully completed at 22:27 UTC on 12th April 2023. To celebrate this milestone, ConsenSys launched an NFT collection called “Ethereum, Evolved: Shanghai”. The NFT claim period begins on April 12, 2023, at 9pm EST and lasts for 72 hours. Find out how to claim this FREE NFT with our guide here.
The next major Ethereum upgrade is titled Cancun, which will feature proto-dank sharding,a feature that aims to improve scalability by improving fees and transaction times. The details of the Cancun upgrade have not yet been finalized.
Shanghai (Shapella) upgrade
The Ethereum network’s Shanghai (also known as Shapella) upgrade took effect at 22:27 UTC on 12th April 2023 and was very successful. This upgrade combined changes to the execution layer (i.e. Shanghai), consensus layer (i.e. Capella), and engine API at epoch 194,048. The Shapella upgrade is important because it finally enabled withdrawals of ETH stakers/validators from the Beacon Chain, ahead of the implementation of the Ethereum Improvement Proposal (EIP)-4884 related to The Surge. This will improve the security of Ethereum’s post-Merge proof-of-stake protocol.
Additionally, a set of EIPs that upgrade the Ethereum Virtual Machine (EVM) will be included in the Shanghai upgrade, such as EIP-3651: Warm Coinbase, EIP-3855: PUSH0 instruction, EIP-3860: Limit and meter initcode and EIP-4895: Beacon chain push withdrawals as operations. The EVM Object Format (EOF) may be removed from the Shanghai upgrade if it is not ready by the time of implementation. Once the Shanghai upgrade is complete, the network’s next major event is the Sharding upgrade, which is expected to take place between 2023 and 2024.
How much ETH has been withdrawn since the Shanghai (Shapella) upgrade?
Since the Shanghai (Shapella) upgrade 228.82K $ETH has been withdrawn with 100.51K $ETH deposited (as of 10:00am HKT on 14th April 2023). At the same time, the current amount of $ETH being staked is 17.38M ($34.97B). And the pending withdrawal amount (including rewards) is 981K ($2.07B). Around 60.99K ($126.89M), is expected to be withdrawn in the next 11 hours.
You can see how much ETH has been withdrawn, deposited or staked since the Shanghai (Shapella) upgrade here.
Ethereum ETH prices since the Shanghai (Shapella) upgrade?
The Ethereum Shanghai (Shapella) upgrade took effect at 22:27 UTC on 12th April 2023 (06:27 on 13th April 2023 HKT). Before the upgrade, ETH was only trading at around $1,920 and remained the same a few hours after. However, the full effect of the Shanghai upgrade on Ethereum prices was seen around half a day and particularly 24 hours after the Shanghai upgrade. As of 11:30am HKT on 14th April 2023 (nearly 1.5 days after the Shanghai upgrade), Ethereum is trading at $2,109.87.
How to set up an Ethereum Validator Node
Check out our LIVE demonstration on how to set up an Ethereum 2.0 Node
How to set up an Ethereum 2.0 node
I’ve also set up something called an Ethereum validator node for Ethereum 2.0. These nodes will be how Ethereum would run and how transactions are going to be validated in the future. So we’re going to explore all of these concepts as well in this guide.
Currently you can test out Ethereum staking on the ETH 2.0 Testnet set up by Prysmatic labs (aka Topaz). Since it’s a test, Ethereum will not be used, instead, it will use Göerli ETH, a free testnet version of ETH.
Time needed: 2 days
How to set up an Ethereum (ETH) Validator Node This guide has been adapted from the Prysm ‘Topaz’ Testnet Guide
Get some Göerli ETH
Göerli ETH is free to obtain and will be used to stake the 32 ETH required for the node. The easiest way to obtain the Göerli ETH is to use the social faucet.
Spin up a Server
You’ll need to be familiar with running a VPS server (you can use AWS, Hetzner or Linode). Recommended specs include an Intel Core i7 processor with 100 GB of SSD storage
Start your Beacon Node
Easiest way we found to do this is via Docker docker run -it -v $HOME/prysm/beacon:/data -p 4000:4000 -p 13000:13000 \ gcr.io/prysmaticlabs/prysm/beacon-chain:latest \ –datadir=/data
Wait (roughly 2 days) to get activated, and then you’re good to go!
Staking Ethereum on a validator node
Ethereum 2.0 migrated the network consensus to a proof of stake mechanism. The staked 32 ETH2 is used to validate the transactions and states on the network. It also acts as a guarantee that the validator node will be honest and operational. In return, stakers will be rewarded with Ethereum.
This means that validators will generate Ethereum as passive income and receive ETH payouts slowly over time. Current calculations of Ethereum 2.0 staking show an annual 14.2% Return on Investment (ROI).
This will be great for those who stake ETH. This is because they can enjoy the benefits of passive income whilst personally holding their funds on the validator node. Analysts predict greater demand for ETH once proof of stake is implemented. This is due to additional demand for ETH from staking and validator nodes. Whilst at the same time, reduced demand for GPUs as Ethereum mining will eventually be phased out.
You can see the status of our Ethereum validator node in the image above. We had some initial downtime for the node, so we actually lost 0.01333 Ether. This was a penalty for missing our votes. So it is important to remember that votes are mandatory once a node is activated. An offline node will mean that votes are missed, resulting in a penalty of loss of ETH.
On 4th Nov 2020 the required specifications of ETH2 v1 and the Mainnet Deposit Contract Address for staking were released. This allowed ETH2 users to stake their ETH and become validators to help secure the network.
It’s important to remember that it is not possible to simply send ETH to the contract. This will result in your transaction failing. You need to go through the launchpad and follow the guide. Moreover, as we stated previously, staking and running a validator requires effort, time and technical expertise. Failing to meet requirements can result in loss of part of, if not all, your ETH as penalties add up.
Ethereum Staking Update: Yields?
As of April 2023, I have earned around 4.373 ETH since setting it up 3 years ago. Note that results may vary. Those who set up their node earlier (as was in my case) were able to enjoy 16% APY. The current APR yield for staking ETH is around 5.16%. You can check the current APR, total ETH staked, and number of validators here.
Ethereum staking since the Shanghai Upgrade
The APR yield for staking ETH since the Shanghai Upgrade is still very good at around 5.16%. So I am planning to continue staking ETH so I don’t miss out on this opportunity to earn more yield.
My logic right now
* unstake ETH node
* move from paper to hardware wallet
* buy more ETH
* stake more #Ethereum is going to some crazy places, definitely don’t want to miss out
More than 17.3 million $ETH is currently staked. Since the Shanghai Upgrade on 12th April 2023, over 107K $ETH has been deposited in the contract address. There are currently 568,291 validators and a Participation Rate of over 99%. The Participation Rate is a measure of ETH2’s network health as it shows the number of validators actively participating in the consensus mechanism. A good rate would be always above 80-90% to ensure the security of the chain.
Unlike before, Ethereum 2 proceeds in epochs (32 blocks), every 6.4 minutes (if no abnormalities are detected). You can always check this metric here: beaconscan.com/epochs.
What’s next in the development of Ethereum 2.0?
Phase 0 – Beacon Chain is already completed, and development would move onto building Phase 1- The Merge and Phase 2-Shard Chains.
Ethereum 2.0 setup and architecture
Currently, we are in Phase 1 of the roadmap the road towards Ethereum 2.0. The Ethereum network is now around 55% complete following the Merge of the Beacon Chain with the Ethereum mainnet in September 2022.
After the Merge, Ethereum will have further upgrades which Vitalik calls the “surge”, “scourge”, “verge”,”purge” and “splurge”. This refers to Ethereum’s scaling, cleanup and evolution.
What is the “surge”, “scourge”, “verge” “purge” and “splurge” in the development of Ethereum 2.0?
After the Merge, Ethereum will undergo further upgrades known as the “surge”, “scourge”, “verge” “purge” and “splurge”.
The “surge” in the development of Ethereum 2.0 refers to adding Ethereum sharding. The purpose of this is to enable more affordable layer-2 blockchains, reduce the cost of rollups, and make it easier for users to operate nodes to secure the network. Once the surge is completed, the Ethereum network is expected to be able to process transactions faster. Ethereum could process up to 100,000 transactions a second once sharding is completed. This is much faster than traditional payment systems such as Visa which can handle around 1,667 transactions per second.
The “scourge” is a new phase announced by Vitalik on 5th November 2022. The purpose of this stage is to ensure reliable and credibly neutral transaction inclusion. Also, to avoid centralization and other protocol risks from MEV.
The “verge” will introduce “stateless clients” and “Verkle trees”- which are a form of mathematical proof. This enables users to become network validators without storing lots of data on their machines. This is a further step in the move toward a Proof-of-Stake consensus model as any validator with staked ETH can confirm and verify transactions. This will be hugely beneficial for decentralization.
The next stage, the “purge” will involve cleaning up old network history. This is to reduce the amount of space required on your hard drive and remove the requirement of nodes to store historical information.
The “splurge” would be several smaller upgrades and fine-tuning in order to ensure that the network operates smoothly. Or as Vitalik calls it, “all the other fun stuff”.
Currently, the Ethereum network can only process around 12 to 25 tps with an average confirmation time of 6 minutes. The result is that the Ethereum network is heavily congested with people all vying to process transactions, resulting in high gas fees.
Many “Ethereum killers” have therefore been launched. These are alternatives people can use for processing transactions. Some Ethereum alternatives include Solana, Avalanche, Polkadot, Algorand, and Cardano. They are a direct competitor to Ethereum as they offer similar features but at lower cost and higher speed.
Eventually, the number of transactions per second will drastically increase to over 100,000 tps. So the question would be, what would happen to the competition i.e. the “Ethereum killers”? Find out more in our article: Ethereum Merge is coming, is this the end of Ethereum killers?
Frequently Asked Questions (FAQ)
Will Ethereum 2.0 replace Ethereum?
Ethereum 2.0 will not replace Ethereum. Rather, Ethereum and Ethereum 2.0 will be merged together into 2 layers of the same blockchain. Ethereum as we know it will be the execution layer, whilst Ethereum 2.0 will be the consensus layer.
Will there be any difference in using the ETH as I am used to?
No, ETH1 will continue as it is with no differences. ETH2 is setting up on a parallel line and the two will merge in the future. The merge will happen without ETH users being able to notice it
When will Ethereum mining end?
Ethereum mining will not end for quite a few years. Ethereum will retain mining on the main chain until at least 2020. The main ETH1 chain will continue to use mining and run parallel to the ETH2.0 chain. This is to ensure stability during the migration
Should I stake my ETH for ETH2?
It does not cost any money to set up a validator node to stake ETH for ETH2. Staking ETH will allow you to generate passive income. However, you will need to stake at least 32 ETH, and if your node suffers downtime your ETH will be partially deducted as penalties. Also, your staked ETH cannot be unstaked until after the Ethereum Shanghai Upgrade.
What are the minimum hardware requirements to become an ETH validator?
Following this list on Prysm website to install the client:
Minimum specifications
Operating System: 64-bit Linux, Mac OS X 10.14+, Windows 64-bit Processor: Intel Core i5–760 or AMD FX-8100 or better Memory: 8GB RAM Storage: 20GB available space SSD Internet: Broadband connection
Recommended specifications
Processor: Intel Core i7–4770 or AMD FX-8310 or better Memory: 16GB RAM Storage: 100GB available space SSD Internet: Broadband connection
Can I lose my ETH Deposit in the Node?
Yes. The 32 ETH staked for the validator node is designed as an insurance that the validator node is operational and online at all times. Penalties will be given if the node is offline, and small amounts of ETH will be deducted over time.
What is the expected APR yield for staking ETH?
The current APR yield for staking ETH is 3.7%. Here you can have an idea of the APR (in ETH) as it varies with the number of ETH staked (source).
Is staking ETH for ETH2 safe or risky?
Staking ETH for ETH2 is safe and does not have any significant risks. However, stakers will not be able to withdraw their staked ETH until after the Shanghai hard fork in March 2023. Also, if your validator node goes offline, you will be penalised by a deduction of your staked ETH.
Are there projects that will allow me to stake even if I have less than 32 ETH?
If you want to participate in ETH2 staking but you don’t own the minimum amount required to become a validator, or you don’t want to stake an exact multiple of 32 ETH, don’t worry. There will be possibilities through Centralized Exchanges (like Binance and Coinbase) and not only. A big advantage in this case, is to receive liquidity for your staked ETH. RoocketPool ($RPL), now in beta, will correspond rETH (1:1 with ETH), a tokenized asset that you will be able to trade freely. Lido Finance will do a similar thing through their stETH. LiquidStake will instead let you borrow USDC for your staked ETH collateral. Many other solutions will arise as ETH2 will start its journey; for example, Cream Finance ($CREAM) has recently released an article explaining that user will receive the ETH2P token when joining ETH2 staking through them
Can you withdraw ETH2 back to regular ETH?
In Phase 0, ETH2 cannot be withdrawn back to regular ETH. Once converted, ETH2 will only be usable on the Staking Chain until Phase 3.
What can I do with my ETH2?
At the moment you cannot do anything with your ETH2. They are just “digital receipts”. Transactions or other features we have now on ETH won’t be available on ETH2 for probably years. There are rumors of a possible secondary market where to trade them though.
When can I buy and sell ETH2?
You cannot buy or sell ETH2 yet. ETH2 will only be available for trading or transfer until Phase 3 when the upgrade of the Ethereum protocol is complete.
Should I buy ETH2 or ETH?
ETH2 is not available for sale yet, so users should be careful of any places that offer ETH2 for sale. ETH on the other hand can be bought and traded at almost every cryptocurrency exchange.
Is testnet ETH worth the same as ETH?
ETH on testnets do not have any monetary value. They essentially allow developers to test and troubleshoot DApps and protocols before going live on the Ethereum mainnet. As a result, there are no markets for testnet ETHs.
Will Ethereum gas fees be cheaper after The Merge?
The Merge will not make Ethereum gas fees cheaper. This is because The Merge is only a change in the consensus mechanism from Proof-of-Work to Proof-of-Stake. Only an expansion of the Ethereum network capacity and throughput would lower the gas fees. However, this is still in development.
Will I be able to withdraw my staked ETH after The Merge?
There is currently locked staked ETH (stETH) on the Beacon Chain. stETH is backed 1:1 by Ether (ETH). However, developers have confirmed that users will not be able to withdraw their locked stETH after The Merge. Withdrawal of stETH will instead be possible after the Shanghai Upgrade which is expected to be in second half of 2023.
Will Ethereum transactions be faster after The Merge?
Ethereum developers believe that transitioning to Proof-of-Stake will result in a 10% increase in block production. However, users are unlikely to be able to notice this slight improvement.
Will Ethereum ETH 2.0 be a new coin?
No. There will not be a new ETH coin after the launch of Ethereum 2.0. Therefore, existing ETH holders, users of dApps, and traders do not have to do anything in anticipation of Ethereum 2.0. Therefore, users should be wary of websites or services claiming that they will allow users to trade, invest, mine, swap, or stake the ETH2 token. This is because the ETH2 token doesn’t actually exist.
Will there be any tax implications resulting from The Merge?
If The Merge does not result in a hard fork, then there are no tax implications because no new tokens would be created.
However, if the Merge results in a hard fork, ETH holders would be sent duplicate tokens which may have tax implications. If the ETH is held in user-owned wallets, new proof-of-work ETH tokens would be considered as income, and its valuation calculated at the time the user comes into possession of the tokens. On the other hand, if the ETH is held in custodial wallets such as cryptocurrency exchanges, the implications would depend on the custodians’ stance on supporting the forked ETH chain.
Will dApps or exchanges be affected by Ethereum 2.0?
The launch of Ethereum 2.0 will not cause a huge impact on users’ interactions with blockchain dApps or cryptocurrency exchanges and services.
Will exchanges be shut down during the ETH Merge?
Ethereum developers have confirmed that during the Merge, there would not be any downtime.
When was the Ethereum Merge?
On 15th September 2022 at 06:42:42 UTC at block 15537393, the Ethereum Merge was completed.
Will ETH holders be airdropped new tokens after Ethereum 2.0?
There are currently no plans for an airdrop of new tokens for ETH holders after the launch of Ethereum 2.0. So far, Vitalik Buterin and the Ethereum Foundation have expressed that they are firmly against any forked ETH tokens.
Therefore, any websites or social media accounts purporting to airdrop Ethereum tokens are most likely a scam.
What is the ETHPOW or ETHW token?
ETHPOW or ETHW is the token that will emerge if there is a fork of the Ethereum blockchain. During the Merge, some community members may disagree (e.g. want to stay with the Proof of Work mechanism) and fork ETH. What they may do, is “copy and paste” the Ethereum blockchain. The result of this is there would be 2 blockchains and 2 tokens. There would be the existing Ethereum blockchain that goes through the Merge with the ETH token. And then there would be the forked chain with a new token called ETHPOW or ETHW.
How can I get the airdropped free ETHPOW/ETHW token?
If you held Ethereum prior to the Ethereum Merge, you will be airdropped (via the fork) free ETHPOW tokens
When can I stop staking my ETH?
Those who have staked their ETH cannot stop staking until the Shanghai hard fork, which is expected in the second half of 2023.
Where can I buy or trade the EthereumPoW ($ETHW) token?
The EthereumPoW ($ETHW) token is not widely traded on cryptocurrency exchanges. However, you can buy or trade the EthereumPoW ($ETHW) on these exchanges: OKX, ByBit, Kraken, Huobi, MEXC Global, Gate.io, Bitfinex, Bittrex, Poloniex and Hotbit.
What is the next upgrade to the Ethereum network
The next upgrade to the Ethereum network is known as the Shanghai upgrade. A major anticipated feature of this upgrade is that withdrawals of ETH stakers/validators from the Beacon Chain will be enabled. The Ethereum network Shanghai upgrade is expected to be in March 2023.
Will there be an Ethereum hard fork after the Merge?
A hard fork is a backward-compatible and permanent split or fork of the blockchain. After a hard fork, a separate version of the blockchain will emerge, as well as a new cryptocurrency token. There is speculation that the Merge may result in a hard fork. This is because some want to take advantage and profit from the Merge. Alternatively, a hard fork may be formed by those who disagree with the direction of Ethereum’s development. A group known as ETHW Core announced they will launch a hard fork within 24 hours of the Merge. This is because they oppose the change to a proof-of-stake mechanism, which essentially puts an end to ETH mining. Several hours after the Merge, the ETHW mainnet and fork of the Ethereum blockchain was launched.
Tax implications resulting from The Merge or Ethereum hard fork?
If The Merge does not result in a hard fork, then there are no tax implications because no new tokens would be created.
How has Ethereum 2.0 impacted its price
If all the phases are completed successfully, Ethereum prices are expected to increase. This is because each phase of the upgrade gives significant upgrades that will improve the performance of the blockchain. This will further grow its utility and value.
What will happen to Ethereum mining?
Ethereum mining is the process of adding blocks of transactions to the Ethereum blockchain. This is to help secure the Ethereum network through a Proof-of-Work (PoW) mechanism. Miners are then rewarded with ether (ETH) which can be traded on cryptocurrency exchanges. Therefore, many people would run Ethereum miners for profit. However, the launch of ETH2.0 will fundamentally change the current economics. The existing Proof-of-Work (PoW) consensus mechanism will be replaced by Proof-of-Stake (PoS). The concept of mining will be retired once the Ethereum 2.0 update is fully completed. For more details check out our article: The end for Ethereum miners after ETH 2.0?
What is the status of the Ethereum Shanghai upgrade?
The Shanghai (Shapella) network upgrade took place at 22:27 UTC on 12th April 2023.
Will Ethereum 2.0 replace Ethereum?
No, but how transactions will be confirmed will change. Previously Ethereum uses Proof of Work (PoW) to confirm transactions. However, Ethereum 2.0 will transition to a Proof of Stake (PoS) consensus mechanism.
What is the Shapella upgrade?
The Shapella upgrade is another name for the Ethereum Shanghai upgrade. It is called the Shapella upgrade because it combines changes from the Shanghai (execution layer) and Capella (consensus layer). This upgrade took place at 22:27 UTC on 12th April 2023.
How much ETH has been withdrawn since the Shanghai (Shapella) upgrade?
Since the Shanghai (Shapella) upgrade, 228.82K $ETH has been withdrawn (as of 10:00am HKT on 14th April 2023). The pending withdrawal amount (including rewards) is 981K ($2.07B). Around 60.99K ($126.89M), is expected to be withdrawn in the next 11 hours.
Where can I see how much ETH has been withdrawn or staked since the Shanghai (Shapella) upgrade?
You can see how much ETH has been withdrawn, deposited or staked since the Shanghai (Shapella) upgrade here.
Ethereum ETH prices since the Shanghai (Shapella) upgrade?
Ethereum ETH prices eventually received a positive boost hours after the Shanghai (Shapella) upgrade. Before the upgrade, ETH was only trading at around $1,920. Nearly 1.5 days after the Shanghai upgrade, Ethereum is trading at $2,109.87.
What is the current APR for staking Ethereum?
The current APR yield for staking Ethereum is around 5.16%
Updates:
Update Nov 2022: Ethereum 2.0 has recently gone through some changes – it is now called the Ethereum Merge. Update Jan 2023: Added details about Ethereum Shanghai Upgrade Update Apr 2023: Added details about Ethereum Shanghai Upgrade and its effect on ETH prices.
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.
ConsenSys is celebrating the upcoming Ethereum Shanghai/Capella upgrade with the launch of a new NFT collection called “Ethereum, Evolved: Shanghai”. The NFT claim period begins on April 12, 2023, at 9pm EST and lasts for 72 hours. If you have a MetaMask wallet, you can mint the open edition for free (excluding gas fee). So act fast to claim your piece of Web3 history!
Learn more about the Ethereum Shanghai (Shapella) upgrade and the road toward Ethereum 2.0 here.
ConsenSys Free NFT Claim Step-by-Step Guide
Here’s how to claim the free ConsenSys NFT:
Visit the “Ethereum, Evolved: Shanghai” NFT Minting Page
ConsenSys is a leading blockchain technology company that focuses primarily on the Ethereum ecosystem. Joseph Lubin, an Ethereum co-founder, established it in 2014. The company aims to drive decentralized applications (dApps) and infrastructure adoption on Ethereum. It provides tools, products, and services like MetaMask and Infura to help developers, businesses, and individuals build next-gen applications and access decentralized web technologies.
ConsenSys is also a founding member of the Enterprise Ethereum Alliance (EEA). This global organization consists of various businesses, startups, research institutions, and Ethereum experts. Launched in 2017, the EEA’s primary goal is to develop open, blockchain-based standards and promote Ethereum adoption in enterprises. Through member collaboration, the EEA seeks to create best practices, architectural guidelines, and industry-specific use cases. This approach helps integrate Ethereum into the business world more effectively and securely.
About the Ethereum Shanghai/Capella Upgrade
The Shanghai/Capella upgrade is a technological milestone in the history of blockchain that will enable users to withdraw staked Ethereum assets. The upgrade is expected to have significant improvements for stakers, the Ethereum staking ecosystem, and DeFi, reducing liquidity risk and inspiring confidence in liquid staking protocols.
The upgrade will also enable Staking withdrawals, increasing the portability of stake and driving further innovation in the staking sector. Stakers will be able to evaluate different offerings based on factors such as rewards maximization, validator performance, simplicity of the user experience, and fees, and will play a critical role in preserving Ethereum’s values.
You can claim your free NFT at the ConsenSys minting page. The claim window will be open for 72 hours starting from 9pm EST on April 12, 2023. Here’s a step-by-step guide:
Visit the “Ethereum, Evolved: Shanghai” NFT Minting Page
In order to mint the NFT, you will need to connect your MetaMask wallet. The network is on the Ethereum mainnet.
Mint and Claim NFT
Click the “Claim Your NFT” button, confirm your MetaMask address, and you will have minted yourself an NFT! The mint itself is free, but you will need some ETH to cover gas fees. You can also choose to mint again, but be careful of the gas fee.
Keep in mind that the Ethereum network may get busier at times, as more people are rushing to mint the NFT. Gas fees can get higher when the network is congested.
View NFT on MetaMask Portfolio
Once you claimed your NFT, you can see it in your MetaMask Portfolio under the NFTs tab. You can also trade it on OpenSea.
Polynomial Protocol is a decentralized derivative exchange powered by the Synthetix Protocol on Optimism. They have distributed Optimism ($OP) airdrops to active users in the past and could do so again. In this article, we will briefly explain what Polynomial Protocol is and what you can do to position yourself for the retroactive airdrop.
What is Polynomial Protocol?
Polynomial Protocol is built on top of Synthetix, with $SNX stakers serving as counterparties for transactions on Polynomial. By offering liquidity, $SNX stakers receive fees from the platform. Apart from trading, Polynomial offers two more products to make DeFi more accessible to users:
Polynomial Earn Vaults: These are the first DeFi Options Vaults (DOV) that operate entirely on-chain by selling options directly to an Automated Market Maker (AMM).
Polynomial Swap: This product streamlines the swapping process on Optimism, particularly for synthetic assets. Non-synthetic assets are routed through 1inch to ensure a seamless experience.
Does Polynomial Protocol have a Token?
Salman Naseer, founder of Polynomial Protocol, said in Discord that they are not planning a token launch at the moment. In the meantime, active users can only claim Optimism ($OP) tokens as rewards.
How to Get Retroactive $OP Airdrop on Polynomial?
The best chance to get another retroactive $OP airdrop is to interact with the Polynomial Trade, Earn, and Swap features. Here’s a step-by-step guide:
After you connected your wallet, you will need to create a Polynomial smart contract wallet. For this part, you also need some ETH to cover gas fees.
Deposit sUSD in Smart Wallet
After creating your smart wallet, you will need to deposit at least $50 sUSD to start trading. You can use the swap feature to get sUSD.
If you don’t have funds in Optimism, you can bridge your assets via the MetaMask bridge aggregator (this could also qualify you for the $MASK airdrop). You can also buy sUSD on KuCoin and transfer them to your Optimism wallet.
Trade Perpetual Futures
You can now trade perpetual futures on the platform. Polynomial has a detailed guide on how to open up standard orders or limit orders for long and short positions.
Use Earn Vaults
You can deposit sETH or sUSD to earn yields in the Polynomial Earn Vaults. It is important to note that these vault strategies are subject to market risks. Check out their earn documents to understand more.
Airdrop Review
When reviewing an airdrop, there are several factors to consider. First, the likelihood the project will even do an airdrop in the first place. Then, to look at how many tokens the project intends to allocate towards airdrop campaigns, as well as the difficulty in participating in their airdrop. It is also important to look at the utility of the token so that there will be an actual use and purpose in participating in the airdrop in the first place. Finally, a factor to consider when reviewing an airdrop is whether the airdropped tokens are subject to any lockup period.
Likelihood of Airdrop: There is no official announcement of the next retroactive $OP airdrop yet. But Polynomial is growing, so there is a good chance there will be another incentive for the community.
Airdropped Token Allocation: The airdropped token allocation is unknown.
Airdrop Difficulty: The trading platform offers a user-friendly interface and operates on the Optimism mainnet. As with any investment, it is advised to only use funds that one is prepared to risk.
Token Utility: Polynomial has no plans to launch its own token yet.
Token Lockup: Polynomial has no plans to launch its own token yet.
