In addition to the Bitcoin halving, the upcoming Ethereum upgrade, Constantinople, will be one of the most anticipated events in the cryptocurrency world. As we all know, Constantinople is an important upgrade for Ethereum aimed at increasing data storage and reducing costs. The Constantinople upgrade consists of five EIPs, with EIP-4844 being the most market-focused. Its main purpose is to address Ethereum’s scalability issues and help reduce transaction costs for Layer2 solutions, which will directly benefit Layer2 and related ecosystems.
Since the Constantinople upgrade aims to improve the security, scalability, and functionality of the Ethereum network, it means that some tokens may have more development opportunities after the upgrade. In this article, we will explore which tokens in the Ethereum Constantinople upgrade background may have development opportunities. (This article is for reference only and does not constitute investment advice)
Layer 2
The core of the Constantinople upgrade is EIP-4844, which improves the throughput of Layer2 and reduces overall transaction fees by introducing Blob. This will undoubtedly increase the competitiveness of Ethereum’s Layer2 compared to other Alt Layer1 projects. However, the competition among various Layer 2 solutions will also intensify. In the following, we will outline several promising Layer 2 projects.
Metis is an Ethereum Layer2 Rollup platform that develops an Optimistic Rollup solution. It packages and orders transactions on Ethereum Layer1 and sends the data back to the Ethereum main chain. Therefore, Metis can provide extremely fast transactions in just a few seconds while maintaining the security of Ethereum Layer1.
Metis’ Layer 2 network uses fraud proofs, assuming that all transactions are valid unless proven otherwise. If a transaction is invalid, a fraud proof must be submitted. Validators deposit collateral, which will be reduced for invalid transactions. This is rigorously verified by Rangers. For Optimistic Rollup, the withdrawal time from Layer 2 to Ethereum is 7 days. Once the Metis network is fully deployed, the withdrawal time will be shortened to hours or even minutes through the Rangers network that verifies transactions. This is one of Metis’ key advantages over other solutions.
It is worth mentioning that the project is also involved by Vitalik Buterin. The team’s recent focus is on decentralized sorters, which is also a promising direction for Layer 2.
Loopring is a decentralized exchange based on zkRollup. It has both an automated market maker (AMM) based exchange and an order book based exchange. The Loopring protocol only uses the Ethereum blockchain as the data layer and verification layer. Loopring’s performance is sufficient for professional traders and market makers to deploy algorithmic strategies and other automated trading robots, which was not feasible on previous DEXs due to slow speed and high fees. By building on Loopring 3.0, the order book-based DEX has finally achieved commercial feasibility. Loopring expects non-custodial exchanges to gradually outperform and replace many centralized exchanges.
Loopring has been deeply involved in zkRollup for many years and is an industry veteran. The team is planning to develop a ZKEVM product called Taiko, which may have potential compared to OP and ARB.
Manta Pacific is a unique Layer2 ecosystem for EVM-native ZK applications on Ethereum, providing a scalable and cost-effective gas fee environment for ZK applications deployed using only Solidity.
Manta Pacific’s notable features include:
– Manta Pacific provides programmable ZK as EVM-native Layer2.
– Manta’s universal circuit allows for easy development of ZK applications using only Solidity.
– Manta Pacific provides high scalability and low transaction fees for ZK applications through data availability with Celestia and scalability with ZKEVM.
Manta has been highly active recently, with decent trading volume and market value. The future looks promising for this project.
AltLayer is an open and decentralized Rollup protocol that brings the new concept of Restaked Rollup. This concept separates existing Rollups from any Rollup stack (such as OP Stack, Arbitrum Orbit, ZKStack, Polygon CDK, etc.) and provides enhanced security, decentralization, interoperability, and rapid finality for them.
Restaked Rollups combine the convenience of launching with OP Stack, Arbitrum Orbit, ZKSync, ZKStack, Polygon CDK, and other Rollup stacks with the powerful functionality of EigenLayer’s restaking mechanism to bootstrap network security and build a decentralized network. The founding team includes former Coinbase CTO and former a16z General Partner Balaji Srinivasan, as well as Ethereum and Parity co-founder Gavin Wood, among others.
ALT is the native utility token of AltLayer, used for economic bonds, governance, protocol incentives, and protocol fees.
This project is also a highly popular rollup as a service solution, and can be considered a leader in this field.
Restaking is a rare issuance project in the Ethereum restaking track that can carry a larger track heat. Restaking allows LST (EigenLayer token) to be used as the economic security for active validation services in the EigenLayer network. Restake Finance proposes a decentralized approach to restake earnings.
Users can restake their LST to EigenLayer by introducing the protocol’s restaked ETH token (rstETH). Users’ LST will be deposited into EL through a DAO-controlled smart contract and will receive rewards for Ethereum staking as well as native EigenLayer rewards. rstETH is decentralized and always fully backed by stETH on a one-to-one basis.
Restake Finance will be supported by the Restake Finance DAO, which will ensure the project remains decentralized and aligned with the interests of stakeholders. The DAO will govern through its utility and governance token, RSTK. Its core goal is to accumulate value for token holders through governance and revenue generation. The system will charge fees for all EigenLayer restaking rewards, which will be shared with RSTK token holders.
Prisma is a decentralized lending protocol that allows users to mint a stablecoin called mkUSD, which is fully collateralized by liquid staked tokens.
Prisma enables users to mint the stablecoin mkUSD, which is fully backed by liquid staked tokens. The stablecoin is incentivized on Curve and Convex Finance to create a capital-efficient flywheel. Users can earn Ethereum staking rewards as well as transaction fees, CRV, CVX, and PRISMA. Overall, Prisma is one of the most stable projects in the Ethereum liquidity staking derivatives track, with impressive performance.
Stader is taking a modular approach to building smart contracts, allowing third parties to build different key solutions on top of their components.
In the short term, Stader is building native staking smart contracts for multi-chain platforms such as Terra and Solana, as well as an economic ecosystem to develop and launch solutions such as YFI-style mining rewards, launchpads, game incentives, and liquidity staking solutions. In the long term, Stader focuses on unlocking platform methods and cultivating third-party development of several staking-related applications on Stader infrastructure. Its investment institutions include Pantera Capital, Coinbase Ventures, Three Arrows Capital, True Ventures, Jump Capital, Accomplice, and Blokchain.com, among others.
SD is the native governance token of the Stader protocol. The SD token has 4 application scenarios: governance, preferential authorization and reduction insurance, liquidity pool, and Stader infrastructure. Token distribution is as follows: rewards+mining 36%, public offering 4%, team advisors 17%, ecosystem fund 11%, private placement 17%, DAO fund 15%.
SD has shown significant improvement in overall business data in the fourth quarter of 2023, and the token price has also seen a good increase. The development in 2024 is also promising.
Rocket Pool is a decentralized staking pool for Ethereum 2.0, aiming to reduce the hardware and capital requirements for ETH2.0 staking. It aims to make Ethereum staking more accessible and decentralized, allowing users, DApps, and businesses to profit by staking their ETH on the beacon chain.
RPL tokens have the following main uses:
– Node deposits: Operating Rocket Pool nodes requires a deposit, and a portion of the deposit must be in RPL tokens. This ensures that node operators are connected to the fate of RPL and Rocket Pool, thus increasing security.
– DAO governance: Users who hold RPL can participate in the decentralized governance of Rocket Pool DAO through proposals and voting. The amount of RPL held determines the voting weight.
– Node rewards: A portion of the node operator’s revenue is distributed in the form of RPL tokens, which can incentivize the creation of more nodes and increase the decentralization of the network.
– Delegator rewards: Rocket Pool stakers can receive RPL rewards rebates from commissions. Rocket Pool has made significant progress in development and commercialization over the years, successfully building a leading decentralized staking infrastructure.
Overall, Rocket Pool holds a leading position in the Ethereum LSD track, and its performance in the market is evident.
GMX is an AMM derivative protocol on Arbitrum that supports spot and perpetual cryptocurrency trading. Users enjoy low spreads and zero price impact and can trade assets such as Bitcoin, Ethereum, and AVAX with leverage up to 50x. Its permissionless nature promotes inclusivity, allowing participants to participate without the approval of central authorities, while providing deep liquidity for efficient order execution.
GMX tokens are utility and governance tools that incentivize holders to stake and share transaction fees, driving ecosystem participation. As a revenue-generating protocol, GMX has evolved into GMX V2, which is expected to achieve significant growth and expand the tradable assets.
With the improved performance of Ethereum and Layer2, GMX’s business is also expected to receive significant support in the future.
Vertex is an order book derivative protocol on Arbitrum that combines a hybrid Central Limit Order Book (CLOB) with integrated Automated Market Makers (AMM), enhancing liquidity by filling the order book with positions from paired LP markets.
Vertex offers low-latency trading and efficient liquidity utilization of a wider range of DeFi assets, thanks to its hybrid order book – AMM design. The off-chain sorter architecture also helps minimize miner extractable value (MEV) on Ethereum L1 while enabling lightning-fast transactions. Its token is used for staking in governance and for income trading rewards.
Similarly, with the improved performance of Layer2, Vertex is also expected to achieve significant business growth in the future.
It can be foreseen that with the performance improvements brought by this round of upgrades, more innovative applications will emerge in the Ethereum ecosystem, promoting further penetration of Ethereum in multiple tracks. At the same time, Ethereum will continue to drive technological breakthroughs and achieve transaction processing capacity of hundreds of thousands per second in the distant future.
The successful implementation of the Constantinople upgrade marks the formal entry of Ethereum into the 2.0 era, and the Ethereum Foundation once again demonstrates its excellent technical vision and strong execution. As a leader in blockchain technology, Ethereum’s influence will continue to expand, and its ecosystem will become increasingly rich and complete.
It is worth mentioning that the Ethereum Constantinople upgrade will bring new opportunities to the entire cryptocurrency market, driving further development in various tracks. Paying attention to high-quality and innovative tokens in these tracks will provide investors with more opportunities for profit. However, it is important to note that any investment carries risks, and investors should approach the market rationally and make investment decisions based on their own risk tolerance.
Disclaimer: This article does not constitute investment advice, and investors should make their own investment judgments.
The content provided in this article is official and does not represent the position or investment advice of our website. Readers must conduct their own careful evaluation.
