TechFlow news, May 12 — Matrixport released a chart analysis today stating, "In our May 7 report, we noted that as the Pectra upgrade progresses, Vitalik is guiding Ethereum toward a Bitcoin-style minimalist architecture. His vision for protocol simplification, combined with several far-reaching improvement proposals, has been one of the key factors behind ETH's surge of over 60%. However, beyond ETH's strong performance, there are additional variables worth noting.
On May 3, 2025, Vitalik proposed an Ethereum Layer 1 simplification roadmap centered on 'clarity' and 'security.' EIP-4850 introduces a revenue-sharing mechanism with Layer 2 solutions, enabling Ethereum to continuously capture value from L2 activity; EIP-7691 increases data blob capacity, reducing L2 transaction fees and improving operational efficiency, thereby encouraging more on-chain transactions to return to the mainnet.
Ethereum's liquidation volume recently surged to $221 million, an unusually high level—such large-scale liquidations typically occur during market downturns, not amid price increases."
