Ethereum Core Protocol Refactoring and Storage Optimization (Issue 2 · Week 28, 2026)

01Latest Developments

Latest Developments

07-07 On a macro level, Wintermute noted that the rise in Bitcoin is merely a temporary rebound rather than the start of a bull market. Although positive macroeconomic factors helped BTC outperform U.S. stocks, net outflows from ETFs this year have already reached $2.73 billion. Institutions generally view the current market situation as a recovery driven by sentiment.

07-06 On-chain capital flow data shows that BitMine increased its holdings of ETH by 42,000 tokens last week, bringing its total holdings to 5.74 million tokens. Its exposure to Ethereum rose to 4.8%, with staking yields amounting to approximately $235 million. The total value of its assets reached $11.1 billion. On the same day, the total value of liquidations across the network in 24 hours was $205 million, with short positions dominating. The scale of short-position liquidations exceeded $127 million, with Bitcoin and Ethereum accounting for over $110 million of this amount.

07-04 Wang Chun, co-founder of F2Pool, deposited 9,876 Ethereum tokens into Binance. This address subsequently transferred another approximately $17 million worth of ETH to Binance, drawing close attention from the market to large-scale on-chain capital movements.

07-02 In terms of regulatory enforcement, the Wenzhou Public Security Bureau and others published an article in Criminal Technology, detailing the procedures for collecting evidence related to Bitcoin and Ethereum, including guidelines for retrieving exchange data and freezing assets.

07-01 Regarding institutional forecasts, Citibank has lowered its 12-month target price for Ethereum to $2,240 due to expectations of zero inflows from ETFs and stalled legislation. Meanwhile, Dutch prosecutors have filed for the bankruptcy of Knaken because it failed to obtain a MiCA license, resulting in the freezing of assets belonging to 30,000 customers and the initiation of criminal investigations.

02Impact Analysis

The marginal impact of Ethereum’s core protocol restructuring is shifting from technical expectations to the suppression exerted by macroeconomic sentiment and capital dynamics. Citibank has lowered its 12-month target price for Ethereum to $2,240, noting that expected net inflows into ETFs have dropped to zero. This indicates that institutions’ pessimistic views regarding short-term liquidity support are intensifying, undermining the expectation of valuation premiums resulting from protocol upgrades. Although BitMine increased its holdings by 42,000 ETH last week, bringing its total holdings to 5.74 million ETH with staking yields of around $235 million—showing that long-term capital still sees value in the ecosystem after storage optimizations—the action of one of the co-founders of F2Pool transferring 9,876 ETH to Binance, coupled with over $127 million in short-order liquidations across the network in 24 hours, reveals that short-term selling pressure and leverage risks are offsetting the buffering effect of long-term asset purchases. Additionally, Dutch prosecutors have applied for Knaken’s bankruptcy and seized $30,000 worth of customers’ assets due to licensing issues, highlighting how regulatory compliance risks are increasingly affecting the industry landscape and potentially forcing storage optimization efforts to account for stricter compliance costs. Overall, the benefits brought about by technical restructuring are being counterbalanced by lower macroeconomic target prices and regulatory uncertainties. Market attention has shifted from the potential of the protocol to the dual pressures of capital conditions and policy factors.

03Keep an eye on it later.

Ongoing Monitoring

1. Institutional Holdings and Collateral Dynamics (Continued) Continue to track changes in ETH holdings and collateralization earnings of leading institutions such as BitMine. Currently, BitMine’s total ETH holdings have reached 5.74 million coins, with collateralization earnings amounting to approximately $235 million. If its holding ratio exceeds 5% further or there are abnormal fluctuations in its collateralization earnings, attention should be paid to potential impacts on on-chain liquidity resulting from adjustments in these institutions’ strategies.

2. Large-Scale On-Chain Fund Flows (New) Pay close attention to ETH transfer activities from key addresses, including Wang Chun, one of the co-founders of F2Pool. On July 4th, Wang Chun deposited 9,876 Ethereum coins on Binance, involving funds worth around $17 million. If such large amounts of capital flow into centralized exchanges accompanied by concentrated selling pressure, it could lead to sharp short-term price fluctuations. Therefore, it is necessary to set thresholds for alerting when large-scale daily transfers occur.

3. Macroeconomic Sentiment and Price Target Adjustments (Continued) Monitor adjustments in Ethereum price forecasts by major financial institutions like Citibank. Citibank has lowered its 12-month target price for Ethereum to $2,240, with net ETF inflows expected to drop to zero. If institutions further reduce their price targets or ETF data continues to show outflows, it will indicate limited recovery in market sentiment. Attention should be paid to potential drops below key support levels.

4. Regulatory Compliance and Judicial Proceedings Progress (New) Track the bankruptcy proceedings and criminal investigations against the Knaken platform by Dutch prosecutors. This platform was filed for bankruptcy due to failing to obtain a MiCA license, and the assets of 30,000 customers have been frozen. The outcomes of such regulatory cases will directly influence compliance standards in Europe’s crypto market. It is important to monitor subsequent asset disposition plans and potential ripple effects on similar platforms.

04Related Reads

1. “Wintermute：比特币上涨只是阶段性反弹，并非牛市来临”
2. “BitMine上周增持4.2万枚ETH，总持有量达574万枚”
3. “24小时内全网爆仓金额达2.05亿美元，空单占主导地位”
4. “F2Pool联合创始人王纯向币安存入9876枚以太坊”
5. “中国警方公开虚拟货币追踪与扣押方法”
6. “花旗银行下调比特币目标价至8.2万美元”
7. “荷兰检方申请对加密平台Knaken进行破产清算”