plummeted
by 20%, dropping from just over $3,000 to a low of $2,200 this morning. The sharp decline led to a
in gas fees on Ethereum mainnet, pushing ETH to be deflationary. The last time ETH was deflationary was just before the Dencun upgrade, although ETH has remained net deflationary since the Merge in 2022. The price drop is part of a broader market sell-off affecting both stocks and crypto assets. Bitcoin also dipped below $50,000. Japan’s Nikkei index had a significant decline of 12.4%, the largest drop on the exchange since Black Monday in October 1987. The market turmoil followed the Bank of Japan’s recent move to raise interest rates on the Yen to 25 basis points.
According to Aave founder Stani Kulechov, the lending protocol generated $6 million in revenue over the weekend amid the market turmoil. The revenue came from liquidation events, which occur when a borrower’s health factor falls below the liquidation threshold. Aave remained operational without outages amid liquidations of $1 billion across the crypto markets. The Aave V3 Ethereum market alone liquidated over 1,000 positions and more than $220 million in debt. The largest single liquidation involved $7.4 million worth of WETH to cover a $10 million USDC loan, which generated $800k for the protocol. Aave is the third largest protocol on Ethereum, with over $10 billion TVL.
During the Base Camp summit, Ethereum creator Vitalik Buterin emphasized that the next challenge for the Ethereum community to solve is cross-L2 interoperability. Base lead Jesse Pollak inquired about what the community should focus on given EIP-4844 is live and the advancements made in account abstraction. Buterin highlighted that cross-L2 interoperability would address account abstraction issues and the fragmented experience across Ethereum’s extended chains. He suggested that contributors focus on the cross-chain address standard ERC-3770, cross-chain intents standard ERC-7683, and CCIP Read standard ERC-3668. He added that people will be surprised by how quickly we get a smooth user experience across Ethereum.
General ticket sales for Devcon VII will go live on Tuesday, August 13th at 16:00 UTC. General Admission tickets are priced at $599 with discounts available for past attendees, public goods projects, open-source contributors, and local SEA builders. Devcon VII is the largest Ethereum developer conference, set to take place in Bangkok, Thailand, from November 12-15.
The revenue came from liquidation events amid the market turmoil over the weekend.
ETH Daily
2 min read·
