Vitalik Buterin Warns About the Risks of Restaking and Ethereum's Social Consensus

Vitalik Buterin, the renowned creator of Ethereum, recently expressed his concerns regarding the increasing trend of restaking and its potential impact on the Ethereum blockchain. In a blog post on his website, Buterin highlighted the importance of maintaining the integrity of Ethereum's validators and cautioned against the misuse of their influence.

Timeline of Ethereum

Ethereum (CRYPTO: ETH) co-founder Vitalik Buterin has introduced a “real-time strategic game” called Slasha to his followers. What Happened: Buterin on Tuesday called it a "totally random fun thing" and encouraged his followers to have a go at it.

In a recent episode of Laura Shin's Unchained podcast, Dan Berkovitz, former commissioner of the United States Commodities Futures Trading Commission (CFTC), stirred up a debate by suggesting that Ethereum's native cryptocurrency, Ether (ETH), could potentially be classified as both a commodity and a security.

As per Berkovitz anything encompassed by a “futures contract” can be classified as a commodity. He pointed out that commodities do not exclusively consist of physical items like “wheat” or “oats.

Ethereum co-founder Vitalik Buterin's recent blog post has raised concerns about the potential risks associated with expanding the scope of social consensus within the Ethereum network. In his post, Buterin highlights the importance of maintaining a clear distinction between reusing validators and overloading social consensus for ostensibly external purposes.

RockX, a firm focused on supportin institutional-grade staking solutions throughout Asia, is broadening its staking product suite with the addition of a new ETH native staking solution.

As of 23 May, Lido Finance protocol managed to process 98% withdrawal requests in a week. This was achieved thanks to Lido's protocol buffer that enables faster withdrawals for stakers on the network.

Ethereum's Shapella upgrade has come and gone, leaving a trail of shifting dynamics in its wake. With over 2.83 million staked ETH withdrawn and Ethereum's balance on centralized exchanges at a five-year low, the market's reaction is fascinating.

The Ethereum exchange balance has dropped to a five-year low. Data from Glassnode showed that the number of ETH held on exchanges stands at 17.86 billion, reaching levels not seen since April 2018.

Ethereum Price Prediction: Amid the recent uncertainty in the crypto market, the Ethereum price witnessed a tight consolidation for the past two weeks. During the sideways, the ETH price actively responded to a rising support trendline and horizontal resistance of $1838 revealing the formation of an ascending triangle pattern.

The latest price moves in bitcoin (BTC) and crypto markets in context for May 23, 2023. First Mover is CoinDesk's daily newsletter that contextualizes the latest actions in the crypto markets.