- Security concerns around Ethereum were explored by analysts.
- Activity on the Ethereum network remained high, and interest in NFTs fell.
Ethereum [ETH] is known for its reliability and hasn’t faced any major issues. However, questions were raised about the network’s security recently.
Looking into the security aspect
According to the findings of crypto analyst Christine Kim, Ethereum’s security model poses certain vulnerabilities. Her analysis delves into potential exploits that attackers might employ against Ethereum’s proof-of-stake consensus protocol.
It examines scenarios such as reorganizations and finality delays, particularly concerning attackers with varying proportions of the total staked ether.
A key insight is that attackers with more significant stakes wield greater influence, as their stake translates into voting power, enabling them to sway the contents of future blocks.
As the attacker’s stake reaches certain thresholds, their power escalates, leading to outcomes like finality delays, double finality, censorship, and control over both the blockchain’s past and future.
However, attacks involving 34%, 51%, or 66% of staked ether might necessitate out-of-band social coordination for resolution. While this could pose challenges for the community, the Ethereum social layer serves as a robust defense mechanism.
Any technically successful attack could potentially be neutralized by the community’s agreement to adopt an honest fork.
This dynamic creates a race between the attacker and the Ethereum community, where swift social coordination could render the attacker’s investment futile.
Source: X
How is Ethereum doing?
Despite these security concerns, it was business as usual on the Ethereum network. AMBCrypto’s analysis of Santiment’s data revealed that the gas usage on the Ethereum network had remained consistent over the last month.
This indicated that activity on the network had remained the same. However, interest in the NFT sector declined significantly during this period.
The declining NFT trades on the network suggested that the rising activity on the Ethereum network wasn’t driven by interest in NFTs on the network.
Source: Santiment
Read Ethereum’s [ETH] Price Prediction 2024-25
Coming to ETH’s price, it was trading at $3,522.12 and its price had declined by 1.92% in the last 24 hours. Moreover, the network growth of ETH had also plummeted indicating that new addresses had started to lose interest in the token.
Additionally, the velocity at which ETH was trading at had also fallen, implying that the trading frequency of ETH had decreased.
Source: Santiment