The Ethereum ecosystem continues to evolve at a rapid pace, marked by critical infrastructure upgrades, developer insights, and shifting market dynamics. This weekly report dives into the latest developments from December 30 to January 5, covering key technical upgrades, market trends, ecosystem growth, and strategic commentary from core contributors — especially Vitalik Buterin’s revealing thoughts on the future of Ethereum’s architecture.
Overview: Muir Glacier Hard Fork Successfully Activated
On January 2, 2025, Ethereum executed the Muir Glacier hard fork at block height 9,200,000. This upgrade was primarily designed to delay the difficulty bomb, a mechanism that gradually increases mining difficulty to incentivize the transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
Post-fork, the difficulty bomb has been frozen for approximately 4 million new blocks, effectively shielding Ethereum from mining scalability issues for several years. This provides developers with more breathing room to finalize Ethereum 2.0’s full rollout without network performance degradation.
👉 Discover how Ethereum’s latest upgrades are shaping the future of decentralized finance.
Market Analysis: ETH Shows Bullish Momentum
1. Price Performance and Technical Outlook
According to OKEx market data, ETH closed the week at $137.24, reflecting a 3.9% weekly gain amid volatile but generally upward movement. The price has now crossed above the 30-day moving average — a significant milestone not seen in over 50 days.
Key resistance levels are forming at:
- $150 (60-day moving average)
- $161 (100-day moving average)
A sustained hold above current levels could confirm a bullish breakout pattern, potentially pushing ETH toward these upper resistance zones. Traders should monitor volume and consolidation behavior around $137–$140 as a signal for continuation.
2. Capital Flows and Investor Sentiment
Last week saw substantial capital movement across exchanges:
- Highest net inflow: Over $10 million on Friday
- Largest outflow: More than $13 million on Tuesday
Despite intraday swings, ETH experienced a net outflow of $3.27 million across all platforms, representing a 260% decline compared to the previous week. This suggests reduced selling pressure and possible accumulation by long-term holders.
3. Large-Scale On-Chain Transfers
Chain analysis from Tokenview reveals notable shifts in whale activity:
- Transfers of >5,000 ETH dropped by 25%
- Transfers of >50,000 ETH plummeted by 66%, with only one transaction recorded
- However, transfers of >10,000 ETH rose by 13%
One major transfer involved 384,000 ETH, though both sending and receiving addresses remain unverified. Such movements often signal institutional accumulation or internal exchange rebalancing.
Ecosystem & Technology Developments
1. Vitalik Buterin: Direct Merge of Eth1 and Eth2 Likely
In a recent response to community questions within the Ethereum 2.0 Chinese forum, Vitalik Buterin shared pivotal insights about Ethereum’s long-term roadmap:
“The most likely path forward is no longer a two-phase bridge between Eth1 and Eth2 — instead, we’re looking at a direct merge.”
Under this model:
- Both chains will continue issuing tokens temporarily: mining rewards on PoW (Eth1) and staking rewards on PoS (Eth2)
- After merging, ETH and BETH will unify into a single native token
- Cross-chain bridging may be skipped entirely to accelerate convergence
This shift indicates growing confidence in the stability of the beacon chain and streamlines the path to full Serenity implementation.
👉 Learn how Ethereum’s merge strategy is redefining blockchain scalability and security.
2. Moloch DAO Launches v2 Smart Contracts
Moloch DAO, an experimental governance framework launched in February 2019 to support Ethereum 2.0 development, has completed its v2 smart contract upgrade.
Key improvements include:
- Separation of contribution tokens and payment tokens
- Introduction of forced member expulsion after asset liquidation
- Support for non-voting shares, enabling broader participation without governance rights
The project has raised over $1.5 million, including 1,000 ETH each from Vitalik Buterin and ConsenSys founder Joe Lubin.
3. DEX Activity: Volume Drops but User Engagement Rises
Per DAppTotal data:
- Total weekly trading volume across 17 tracked Ethereum-based DEXs: 140,320 ETH (~$18.94 million), down 29%
- Weekly active users: 14,210, up 7.8%
Despite lower volume, user growth suggests increasing interest in decentralized trading. Notable performers:
- AirSwap: -38.48% weekly change
- TokenJar: +36.89% weekly gain
4. DApp Ecosystem Expansion
DappReview reports:
- 11 new DApps added to Ethereum
- Cumulative total: 2,790 DApps
- Top newcomer: PyraBank-Hex, a DeFi bank offering lending and deposit services, attracted 84 users in seven days
This steady innovation underscores Ethereum’s dominance in fostering open financial applications.
5. Mining Metrics Post-Muir Glacier
Following the hard fork:
- Average network hash rate: 169.3 TH/s, up 9.2%
- Mining difficulty: Reduced to 2,074 T
- Block time: Shortened to 13.3 seconds
- Daily block production: Increased by 10%
- Daily mining reward: Back above 13,000 ETH/day
These improvements reflect immediate operational benefits from defusing the difficulty bomb.
Key News Highlights
Ethereum Mainnet Upgrades Confirmed
The successful activation of Muir Glacier ensures smooth PoW operations for years ahead, buying time for Eth2 integration.
DeFi Dominance on Ethereum
Over 75% of active DeFi apps run on Ethereum, per Dapp.com — reinforcing its status as the leading smart contract platform.
MakerDAO Rejects Emergency Risk Proposal
An administrative vote to enhance collateral safeguards failed despite close support. Governance Security Module (GSM) updates may return for future voting.
Analysts Turn Bullish on ETH
Multiple experts predict strong upside:
- Manu Naik: 68% chance of breaking out past $128; potential rise to $240 by mid-January
- Scott Melker: Believes ETH shows stronger technical structure than BTC
- DonAlt: Expects rebound within 3–6 months
MetaMask Returns to Google Play
After temporary removal, MetaMask’s Android app is back on Google Play — a win for accessibility and mainstream adoption.
Parity Node Sync Issue Resolved
Parity warned users of ongoing sync attacks on December 31; recommended upgrade to v2.6.8-beta or v2.5.13. Note: Parity Ethereum client is now under OpenEthereum DAO stewardship.
Virgil Griffith Released on Bail
Developer Virgil Griffith has been released to his parents’ home in Alabama pending trial, with $1 million bail set. He faces charges related to sharing blockchain knowledge with sanctioned entities.
Frequently Asked Questions (FAQ)
Q: What is the purpose of the Muir Glacier hard fork?
A: It delays the “difficulty bomb” to prevent excessive mining difficulty spikes, ensuring stable PoW operations while Eth2 development continues.
Q: Will ETH and BETH become the same token?
A: Yes — after the Eth1 and Eth2 merge, BETH (the staking token) will be unified with ETH into a single native currency.
Q: Is Ethereum moving away from bridging solutions?
A: According to Vitalik Buterin, direct merging is now preferred over bidirectional bridges, simplifying the transition process.
Q: How does Moloch DAO support Ethereum development?
A: It funds high-impact public goods through decentralized governance, addressing developer incentives and coordination challenges.
Q: Why did DEX volumes drop while users increased?
A: Lower average trade sizes or fewer large trades can reduce total volume even as user engagement grows — often a sign of grassroots adoption.
Q: Is MetaMask safe to download now?
A: Yes — it has been reinstated on Google Play following resolution with Google’s app policies.
Final Thoughts
Ethereum remains at the forefront of blockchain innovation, balancing short-term stability with long-term transformation. With the Muir Glacier upgrade securing PoW continuity and Vitalik Buterin signaling a streamlined merge strategy, momentum is building toward a unified Eth1-Eth2 future.
As DeFi activity strengthens and developer tools mature, Ethereum’s position as the foundation of decentralized applications appears more resilient than ever.
👉 Stay ahead of Ethereum’s evolution — explore real-time data and insights today.