Weekly Project Update | Bitcoin’s Illiquid Supply Reaches 11.51 Million, Hitting a New All-Time High

Bitcoin's illiquid supply hits new high at 11.51 million.

Blocking Weekly is a weekly blockchain industry summary program launched by Blocking, covering key news, market and contract data, mining information, project dynamics, technological progress and other industry developments. This article is the project weekly, taking you through the progress of mainstream projects and star projects this week.


Data: Bitcoin illiquid supply reaches 11.51 million, hitting a new high

Blocking reported that as holders accumulate BTC with increasing determination, the current illiquid supply of Bitcoin has reached a record high of 11.51 million, indicating that Bitcoin investors are not interested in selling BTC during periods of high dollar inflation and macroeconomic concerns. In addition, the increase in Bitcoin’s illiquidity has also led to a continuous decline in spot market trading volume, with Bitcoin’s 7-day average trading volume currently at only $10.4 billion, reaching a new low since 2023. (cryptoslate)

Bitcoin volatility index has maintained a downward trend for nearly a month, falling to a low point in February this year

On May 22, the BitVol (Bitcoin Volatility) index launched by financial index company T3 Index in conjunction with Bitcoin options trading platform LedgerX has maintained a downward trend for nearly a month and fell to 52.88 yesterday, falling to a low point in February this year, up 0.74% from the previous day. Note: The BitVol index measures the 30-day expected implied volatility derived from tradable Bitcoin option prices. Implied volatility refers to the volatility implied by the actual option price. It is calculated using the B-S option pricing formula, and the actual option price and other parameters except for the volatility σ are substituted into the formula to infer the volatility. The actual price of the option is formed by the competition of many option traders. Therefore, implied volatility represents the market participants’ views and expectations of the market at that time and is considered the closest to the true volatility at that time.

Data: Bitcoin network settlement transfer volume has dropped by about 85.5%

Blocking reported that according to data disclosed by blockchain analysis company Glassnode, the settlement transfer volume of the Bitcoin network has generally decreased since the beginning of 2021, from a cyclical high of $13.1 billion to a cyclical low of $1.9 billion, a decrease of 85.5%. Although the transfer volume in 2023 has shown a slight increase, it is still within the range of recent cyclical lows, between $1.9 billion and $4.4 billion. In addition, the amount of deposits on exchanges has also experienced a similar structural decline, falling from a peak of $4.2 billion in May 2021 to a low point of $343.4 million today (a decrease of -91.8%).

Bitcoin Core Client 25.0 has been officially released. This version includes new features, various bug fixes and performance improvements, as well as updated translations. Bitcoin Core operators should upgrade after fully closing the old version. Bitcoin Core can run on operating systems that use Linux kernel, macOS 10.15+, and Windows 7 and later, as well as most other Unix-like systems.


Ethereum circulation has decreased by more than 250,000 coins since the merge. According to ultrasound.money data, Ethereum circulation has decreased by more than 250,000 coins since the merge, and the current annual deflation rate is -0.31%.

Ethereum Layer 2 network’s total payment fees in May reach a historic high, exceeding $16 million. According to Blocking, Ethereum’s Layer 2 network experienced a surge in main network payment fees in May, reaching nearly 9,000 Ethereum, worth $16.2 million. This is five times the total fees paid in January on Layer 2, mainly due to the skyrocketing gas costs on the Ethereum main network. Among them, Arbitrum became the main contributor to the payment fees on the main network, generating a cost of 4,260 ETH, equivalent to about $7.6 million. zkSync’s Era main network ranked second with 2,250 ETH, equivalent to about $4 million.

Ethereum’s circulation has decreased by more than 140,000 coins in the past 30 days. According to Ultrasound.money data, Ethereum’s circulation has decreased by 146,326.34 coins in the past 30 days. The current circulation of Ethereum is about 120,258,228 coins, and the current annual deflation rate is 1.48%.

Ethereum client Geth releases version v1.12.0, no longer supports POW. On May 25th, Go Ethereum released Ethereum client Geth v1.12.0 (Krogam DMZ), which no longer supports Proof of Work (POW), so it can no longer be used for PoW-based private chains or as an upstream library for projects that depend on ethash POW.

Currently, the Ethereum network has burned 332.58 thousand ETH.

According to Ultrasound data, as of now, the Ethereum network has burned a total of 3,325,862.14 ETH. Among them, OpenSea burned 230,050.65 ETH, ETHtransfers burned 284,714.09 ETH, and UniswapV2 burned 178,474.36 ETH. Note: Since the introduction of EIP-1559 after the Ethereum London upgrade, the Ethereum network will dynamically adjust the BaseFee of each transaction based on transaction demand and block size, and this part of the fee will be directly burned.

Other Projects

Data: Lido Platform MATIC Staking Total Value Breaks 100 Million Dollars

On May 22, according to official data from the liquidity staking protocol Lido, the total value of Polygon (MATIC) staking on Lido has exceeded 100 million U.S. dollars. The current total amount of MATIC staking is 125,388,555 (worth 108,281,794 U.S. dollars), of which the staking reward paid is 8,318,002 MATIC (worth 7,183,177 U.S. dollars).

Tornado Cash Attacker Publishes New Proposal to Restore Governance

On May 22, Tornadosaurus-Hex, a member of the Tornado Cash community, stated in the forum that the attacker of Tornado Cash has released a new proposal to restore governance and is likely to execute it. In the malicious proposal, the attacker gives himself TORN as lockedBalance-s and resets it to 0. If the proposal is passed, the malicious code integrated into the protocol by the attacker will be removed, and token holders will regain control of Tornado Cash’s DAO governance. Tornadosaurus-Hex said that he or someone else needs to propose an update to the governance contract. Tornadosaurus-Hex is ready to fix the logic, but needs to verify the storage layout so that the proxy upgrade does not break the contract. Since the attacker holds TORN governance tokens, the proposal seems to be approved when the vote ends on May 26, but it is unclear when the action will be executed. When the proposal is passed, the malicious code integrated into the protocol by the attacker (allowing them to steal voting rights from others) will be removed, and the governance of Tornado Cash’s DAO will be returned to token holders.

Cronos partners with Seoul City to develop a local blockchain ecosystem and talent pool. Cronos Labs, the development firm behind the EVM-compatible Layer 1 network, has partnered with Seoul City to enhance the competitiveness of the Korean Web3 industry and create opportunities for global talent development in the blockchain field. Cronos Labs will also help local builders create user-friendly applications on the Cronos chain and drive the mainstream adoption of Web3.

Scroll co-founder Sandy Peng said in an interview with Mr. Block that they are confident they will launch their mainnet within the next few months, with a specific time to be determined, likely in Q3 or Q4. Additionally, they will spend a lot of time writing educational blogs to help people understand their technology, principles, and concepts. They will encourage builders to create something that is useful for everyone as well as encourage community members to strengthen their learning activities and invest in themselves, which will have significant long-term benefits. They will also engage in building and organization-related altruistic activities that are difficult to measure but are important to Scroll. Higher-quality interactions are first and foremost about self-improvement and learning. The second is to do high-quality entrepreneurship on Scroll.

Ledger will postpone the release of Ledger Recover feature. Ledger has announced that it will postpone the release of the Ledger Recover feature and will not introduce the new feature until the code is released. The Ledger Recover service splits the private key recovery phrase into three encrypted shards and distributes them to three custodians: Ledger, encryption custodian company Coincover, and code custodian company EscrowTech. If someone loses their recovery phrase, they can merge two of the three shards (waiting for ID verification) to regain access to their locked funds. The feature has raised some concerns among users about privacy and security.

Tether‘s market value has reached $83 billion, nearing its all-time high of $83.2 billion set in May 2022, according to CoinGecko. However, Kaiko analysts found that Tether’s supply has increased but its trading volume has not correspondingly increased. Tether is primarily used for trading on centralized exchanges and holds a 50% market share compared to other stablecoins. On decentralized exchanges, USDT holds only about 20% market share. Another factor contributing to the growth of USDT’s market value could be the decoupling of Binance’s BUSD stablecoin and USDC in March. Another factor driving up Tether’s market value is its growth on Tron.

Ledger is accelerating its open source roadmap to address concerns about its Recover service. CEO Pascal Gauthier said Ledger never compromises on security and the company never intended to surprise anyone with the service’s release. “Our unintended communication error surprised everyone and impacted our customers’ accurate understanding of the capabilities of Ledger Recover, its role in the evolving crypto community, and Ledger’s future products,” he said.

After a week of intense opposition from the crypto community, hardware wallet maker Ledger has postponed the release of its private key recovery service. Last week, Ledger launched Ledger Recover, which it described as an optional subscription for users who want to back up their Secret Recovery Phrase, and said that any firmware updates to its devices would not automatically enable it.

Cosmos has announced the integration of the new NFT interoperability standard ICS-721, which will allow users to track and transfer their NFTs across blockchains without the use of bridging protocols, and support the integration of NFTs in multiple areas such as gaming, web3 identity protocols, and social platforms. ICS-721 is described as an application layer inter-blockchain communication (IBC) protocol that allows communication between blockchains without the need for bridging protocols. The ICS-721 NFT standard is a joint project between Interchain Foundation and Bianjie aimed at adding utility to cross-chain NFTs by achieving cross-chain interoperability.

Fantom Foundation withdraws nearly 450,000 MULTI liquidity from SushiSwap

On May 24th, according to Lookonchain, the Fantom Foundation withdrew 449,740 MULTI (worth approximately $2.4 million) liquidity from SushiSwap.

TVL of zkSync Era breaks through $300 million to reach a new all-time high

Blocking reported that according to L2BEAT data, the total value locked (TVL) on zkSync Era has exceeded $300 million, setting a new all-time high.

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