Ethereum Weekly Recap: The Merge, Layer 2 Advances, and Ecosystem Growth

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The Ethereum ecosystem continues to evolve at a rapid pace, with critical progress toward The Merge, significant advancements in Layer 2 scaling, and growing momentum in decentralized applications and infrastructure. This week’s developments highlight the network’s resilience and innovation, even amid broader market challenges.


The Merge: Goerli Testnet Target Set for August 10

The countdown to Ethereum’s historic transition to Proof-of-Stake is accelerating. According to Terence@terencechain, a developer from the consensus client Prysm, the Goerli testnet is scheduled to undergo The Merge on August 10, 2022. This will be the final full-scale rehearsal before the mainnet upgrade, making it a pivotal milestone.

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Sixth Community Call: Key Updates and Preparations

The sixth Merge community call is set for August 12 at 22:00 Beijing Time, and will last 60 minutes. All validators, developers, and community members are encouraged to attend. Key discussion topics include:

This transition requires active participation from all node operators. Ensuring client diversity and proper configuration will be crucial for a smooth mainnet upgrade.


Consensus Layer Innovations

MEV-Boost Gains Momentum

MEV-Boost, Flashbots’ solution for maximizing validator rewards while minimizing centralization risks, is now widely accessible. As of the July 15 update:

This progress enables solo stakers and staking pools to participate in MEV revenue streams more securely and transparently.

Obol Network Launches Athena Testnet

Obol Network, a leader in distributed validator technology (DVT), has launched Athena, its first public testnet. This initiative aims to enhance validator resilience by allowing multiple operators to jointly run a single validator.

The Athena testnet involves four phases:

  1. Operators register and pair up for Distributed Key Generation (DKG).
  2. Participants generate secure key shares.
  3. Obol deposits 32 ETH into the Prater testnet to activate validators.
  4. After ~30 days, operators exit gracefully and receive performance scores.

Before mainnet launch, Obol’s Charon client will undergo further testing on Goerli and Gnosis Chain.


Layer 2 Scaling: StarkNet, Scroll, and Lido Expand Horizons

StarkNet Foundation and Token Launch Plan

On July 13, StarkNet unveiled its decentralization roadmap, including the creation of the StarkNet Foundation and the launch of its native token.

Key highlights:

This move signals a major step toward community governance and long-term sustainability.

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Scroll Releases Pre-Alpha zkEVM Testnet

On July 19, Scroll, a zkEVM-based zkRollup project, launched its pre-alpha testnet. Early testers can register at scroll.io.

Features of this initial release:

Next steps include an open, permissionless alpha testnet on Ethereum’s public testnets, enabling:

Final mainnet goals include a decentralized prover network and full EVM compatibility.

ZKX Raises $4.5M for Derivatives on StarkNet

ZKX, a permissionless derivatives protocol built on StarkNet, secured $4.5 million in seed funding from major players including StarkWare, Alameda Research, Amber Group, Huobi, Crypto.com, and Hashkey Capital.

ZKX aims to solve key DeFi challenges:

The protocol plans to launch on mainnet in Q4 2022, followed by decentralization of its node network in 2023.

Mandala MMORPG Built on Immutable

Blockchain gaming platform Mandala is now being developed on Immutable, an NFT-focused Layer 2. Mandala is a blockchain-based MMORPG that leverages Immutable’s scalability for seamless in-game asset ownership and trading.

Lido Expands to Layer 2

Lido, the leading liquid staking protocol, has announced its expansion to Layer 2. stETH holders will soon be able to use their tokens across L2 DeFi platforms.

Already integrated with:

More integrations are coming. Lido also launched L2sDAYS, a weekly show exploring Ethereum scaling. The first episode featured the Optimism team on July 19.

DeversiFi Rebrands as rhino.fi

Formerly a StarkEx-based DEX, DeversiFi has rebranded as rhino.fi, pivoting to become a frictionless gateway for multi-chain DeFi users on Layer 2.

Arbitrum Upgrades Testnets

Arbitrum has launched a new Görli testnet and plans to migrate the Rinkeby testnet to Nitro this month. This follows the earlier Nitro developer testnet rollout in April.


Ecosystem Developments

ethereum.org Adds DeSci Section

On July 10, ethereum.org launched a dedicated page for DeSci (Decentralized Science) — a movement using Web3 to rebuild scientific funding, publishing, attribution, and collaboration as open public infrastructure.

Topics covered:

This addition reflects growing interest in blockchain’s role beyond finance.

OpenSea Migrates to Seaport Protocol

On July 15, OpenSea completed its migration to Seaport, a new open, decentralized, and upgradeable NFT marketplace protocol.

Key benefits:

Seaport empowers builders, creators, and collectors with greater flexibility and lower costs.

Gnosis Safe Raises $100M Strategic Round

Gnosis Safe, the leading multi-sig wallet on Ethereum, has raised $100 million in a strategic funding round. Contributors include:

Funds will support ecosystem growth for projects like Utopia Labs, Coinshift, and ParcelHQ.


Notable Events

Celsius Files for Chapter 11 Bankruptcy

After halting withdrawals on June 13, Celsius filed for Chapter 11 bankruptcy protection on July 14. On July 19, users were directed to submit claims via Stretto, the claims administrator.

This follows months of financial strain exacerbated by the Terra collapse.

EthCC Kicks Off in Paris

The fifth annual EthCC (Ethereum Community Conference) began on July 19 in Paris. With over 200 speakers — including Vitalik Buterin and StarkWare’s Eli Ben-Sasson — the event focuses on post-Merge Ethereum development.

beaconcha.in Launches Merge Checklist

The beacon chain explorer beaconcha.in has added a Merge preparation checklist in its mobile app. Solo stakers can use it to ensure their nodes are ready for the transition.

StarkNet Hosts Paris Hackathon

StarkNet partnered with Encode Club and Activate to host a hackathon in Paris (July 18–19), offering over $20,000 in prizes. Topics included Cairo programming, L1-L2 messaging, and wallet integration.


Protocol Update: EIP-4361 Moves to Review

EIP-4361, which standardizes “Sign-In with Ethereum”, has advanced from Draft to Review status. This marks a critical step toward making Ethereum addresses a universal identity layer for web applications.


FAQ

Q: What is The Merge?
A: The Merge refers to Ethereum’s transition from Proof-of-Work to Proof-of-Stake, combining the existing execution layer with the new consensus layer (beacon chain) to improve scalability and reduce energy consumption.

Q: When is the Goerli testnet merge happening?
A: The Goerli testnet is scheduled to merge on August 10, 2022. It’s the final full test before the mainnet upgrade.

Q: What is MEV-Boost?
A: MEV-Boost is a tool that allows validators to outsource block production to maximize revenue from MEV (Maximal Extractable Value) while maintaining decentralization.

Q: What is zkEVM?
A: A zkEVM is a virtual machine that executes Ethereum-compatible smart contracts and generates zero-knowledge proofs to verify execution off-chain — enabling scalable, secure Layer 2 solutions.

Q: How does Lido’s Layer 2 expansion benefit users?
A: stETH holders will gain access to DeFi opportunities across multiple Layer 2 networks, increasing capital efficiency and reducing transaction costs.

Q: What does EIP-4361 enable?
A: EIP-4361 standardizes Ethereum-based authentication, allowing users to log in to apps using their wallet — enhancing privacy and user control over digital identity.


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