• Ethernet developers are considering adding transactions that carry blob to improve the scalability of aggregation.
  • The proposed update reduces transaction costs and provides immediate relief before the slice is completed.
  • According to a survey by CoinShares, investor sentiment toward ethereum has improved as cottage coins have received larger allocations.
  • Analysts believe that the Ether price is at a make-or-break point as it reaches $3,000 while maintaining a bullish structure.

Ether co-founder Vitalik Buterin has proposed a solution to temporarily alleviate Layer 2 scalability issues and transaction fees before sharding. The new update could be bundled and added to the Shanghai hard fork.

Ahead of new update, investors turn bullish on ethereum outlook

The Ethernet roadmap is constantly evolving. Vitalik Buterin, co-founder of the Ethernet network, has proposed a new update to immediately ease the Layer 2 scaling solution without the need for sharding.

Rollups, or Layer 2 chains, inherit the security, decentralization, and liquidity of the ethereum network. Early aggregations such as Optimism, Arbitrum and StarkNet are awaiting further optimizations in 2022, and Buterin proposes "blob-carrying transactions" that reduce transaction costs by a factor of five or more by the end of 2022.

Ethernet layer-1 will likely remain expensive; however, higher scalability and zero-knowledge (zk) aggregation could provide the cheapest fees for users. Eventually, users will exclusively use zk rollups rather than interacting directly with the ethereum network.

Some propose to add “blob-carrying transactions” to recent hard forks to bring greater scalability to aggregation before the full slice is completed. https://t.co/oRTSwAC1oD

-vitalik.eth (@VitalikButerin) February 5, 2022

Lower transaction costs and greater scalability are expected to boost investors' outlook on ethereum. Capital markets firm CoinShares recently conducted a bi-monthly fund manager survey of digital assets. The survey results show that investor sentiment towards Bitcoin and Ether has improved.

The report reveals a potential correlation between investor sentiment and digital asset allocations. The relatively large allocations are accompanied by an improved outlook for ethereum compared to cottage coins Polkadot, Cardano and Solana.

The report reads as follows.

The allocation of digital assets reflects the growth prospects for digital assets, with a slight increase in the allocation of larger tokens [Bitcoin, Ethereum] at the expense of torrents.

Analysts assess the price trend of ethereum and point out that the cottage coin is at a make-or-break point.

@CottageSherpa thinks Ether could go back to the lows; however, the price maintains a bullish market structure on the 4-hour weekly chart, with $3,000 being the make or break point.

$ETH : This is not usually how bottoms form; I think a return to the lows is likely (eventually). Having said that, price maintains a bullish market structure after 4 hours. HH/HL: Approaching the scary area of the 3000s, so be careful. #Ethereum $ETHUSD pic.twitter.com/9KoAwUnsM2

-Cottage Sherpa (@CottageSherpa) February 4, 2022

FXStreet analysts believe that ethereum shorts are desperate as the cottage coin approaches $3,500.