- Ethereum’s new protocol is aimed at further Account Abstraction
- While new addresses have joined the network, the TVL has risen too
A major part of Ethereum‘s future roadmap is Account Abstraction(AA). AA focuses on the UI/UX (User Interface/User Experience) elements of Ethereum’s ecosystem. The aim of AA is to allow more user-friendly interactions between wallet developers, application developers, and end users. It is also aimed at making smart contract wallets that are natively supported on Ethereum.
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Looking at Abstractions
Over the last few days, the ERC-4337 contract was deployed on the Ethereum network. The deployment of this contract brought Ethereum’s goal of Account Abstraction much closer.
The deployment of the contract is aimed at improving the experience of developers working on Ethereum wallets and infrastructure. Compared to smart contract developers, wallet developers did not have ERC-20 standards they could work with.
One of the features of the ERC-4337 is the introduction of the EntryPoint contract, which fixes this issue. The EntryPoint contract provides a similar standard such as the ERC-20 for wallet developers.
It would also help users switch from EOA (externally owned accounts) wallets to smart contract wallets . However, the jump from EOA to smart contract wallets would cost users more as these wallets are inherently more expensive than EOAs. This could cause some problems for users in the future.
Source: Messari
The current state of Ethereum
If Ethereum‘s developments continue to head towards AA, it will make the Ethereum ecosystem more user-friendly in the long run. It will also end up attracting more addresses to the Ethereum network.
Now, while Ethereum hasn’t reached its AA goals just yet, that hasn’t stopped addresses from increasingly joining the network.
According to Glassnode, the number of addresses holding more than 0.01 coins appreciated over the past month. In fact, it hit a 7-month high of 23.20 million.
Source: glassnode
This surge of new addresses on the Ethereum network also helped the network maintain its dominance in the DeFi sector. According to data provided by Defi Llama, the dominance of Ethereum on the TVL front remains between 58%-60%.
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Additionally, Ethereum has managed to retain its dominance despite many L2 solutions noting growth in this sector over the last few months.
Source: DefiLlama
Ergo, it remains to be seen how the Ethereum network’s landscape changes. Especially as it moves closer to the goals on its roadmap.