Ethereum Core Protocol Refactoring and Storage Optimization (Issue 1 · Week 28, 2026)

01Event Overview

On July 6, BitMine increased its holdings by 42,000 ETH, bringing its total holding to 5.74 million ETH, with collateralized earnings of around $235 million. On the same day, the total value of liquidations across the network in 24 hours reached $205 million, of which short-position liquidations accounted for over $127 million, with Ethereum playing a significant role. On July 4, Wang Chun, co-founder of F2Pool, deposited 9,876 ETH on Binance, drawing attention to large-scale capital movements on the blockchain. The market sentiment index fluctuated sharply in the short term, dropping by 15.6 points before rising by 36.0 points, while the activity of Whales also increased significantly.

02Course of the incident

• [06-30] Sharplink purchased 10,000 Ethereum at an average price of $1,611, raising its holding to 886,000 coins.
• [06-30] Dutch prosecutors filed for the bankruptcy of the crypto platform Knaken in the public interest, blocking funds belonging to 30,000 users.
• [07-01] Citibank lowered its 12-month target price for Ethereum to $2,240, anticipating zero net inflows for ETFs.
• [07-02] Chinese police published a guide in “Criminal Technology” detailing the process of collecting evidence related to Ethereum, including guidelines for asset freezing.
• [07-04] Wang Chun, co-founder of F2Pool, deposited 9,876 Ethereum on Binance, drawing attention to large-scale capital movements on the blockchain.
• [07-06] BitMine increased its holdings by 42,000 ETH last week, bringing its total holdings to 5.74 million coins, with staking earnings amounting to approximately $235 million.
• [07-06] The total value of liquidations across the network in 24 hours reached $205 million, with Ethereum and Bitcoin accounting for over $110 million of that amount.

03Impact Analysis

On the market price front, Citibank lowered its 12-month target price for Ethereum to $2,240 on 07-01, driven by expectations of zero inflows from ETFs and legislative stagnation. On 07-06, the total value of liquidations across the network in 24 hours reached $205 million, with Ethereum and Bitcoin accounting for over $110 million of those liquidations, while short-seller liquidations exceeded $127 million. In terms of institutional holdings, BitMine held a total of 5.74 million coins as of 07-06, generating approximately $235 million in staking rewards; Sharplink purchased 10,000 more coins at an average price of $1,611 on 06-30, raising its total holdings to 886,000 coins.

Regarding regulatory responses, Trump estimated that crypto-related revenues could reach $1.427 billion by 2025 on 07-01, and Vance disclosed his Bitcoin holdings for the first time, leading to a deadlock in negotiations over the ethical provisions of the CLARITY Act. On 06-30, Dutch prosecutors applied to declare Knaken bankrupt in the interest of the public, freezing the funds of 30,000 users while criminal investigations proceeded simultaneously. On 07-02, Chinese police revealed methods for tracking and seizing virtual currencies, including procedures for collecting evidence related to Ethereum and guidelines for asset freezing.

In terms of ecosystem impacts, Wang Chun, co-founder of F2Pool, deposited 9,876 Ethereum coins on Binance on 07-04, drawing attention due to the large-scale capital movement on the blockchain. Changes in institutional holding structures showed that BitMine’s share of Ethereum holdings rose to 4.8%, with its total assets reaching $11.1 billion.

04Subsequent focus areas

1. Changes in institutional holdings and collateral earnings: Continuously monitor the holding sizes of institutions such as BitMine. Currently, their total holdings amount to 5.74 million coins, generating collateral earnings of around $235 million. If their holding ratio falls below 4.8% or collateral earnings fluctuate by more than 5% on a weekly basis, it may indicate adjustments in these institutions’ strategies.

2. Large-scale capital flows on the blockchain: Keep an eye on the activities of key addresses like those associated with F2Pool. For example, Wang Chun’s deposit of 9,876 Ethereum coins onto Binance on 07-04 attracted significant attention. If the amount of funds transferred from the blockchain to exchanges exceeds $17 million in a single day, it could signal the onset of selling pressure.

3. Market liquidation risk thresholds: Pay attention to the total value of liquidations across the network within 24 hours. Currently, this figure stands at $205 million, with short positions dominating. If the liquidation volume for Ethereum alone exceeds $110 million, there is a need to guard against cascading effects resulting from a shortage of liquidity.

4. Institutional target prices and ETF expectations: Track the pricing models of investment banks such as Citibank, which have lowered their 12-month target price for Ethereum to $2,240. If the expected net inflows into ETFs remain at zero, it could further suppress price rebounds.

5. Regulatory compliance and platform risks: Monitor the bankruptcy proceedings of platforms like Knaken in the Netherlands that do not hold MiCA licenses, as this has led to the freezing of assets belonging to 30,000 customers. If similar compliance issues occur frequently, it may increase concerns regarding the security of asset storage and custody.

05Related Reads

1. “BitMine Increased Holdings by 42,000 ETH Last Week, Bringing Total Holdings to 5.74 Million”
2. “Total Liquidation Amount across the Network in 24 Hours Reaches $205 Million; Short Positions Dominate”
3. “F2Pool Co-Founder Wang Chun Deposits 9,876 Ethereum on Binance”
4. “Trump Invests $1.4 Billion in Cryptocurrencies; Vance Reveals His Bitcoin Holdings for the First Time”
5. “Sharplink Increases Ethereum Holdings by 10,000 Units and Repurchases 2.13 Million Shares”
6. “Dutch Prosecutors Request Knaken’s Bankruptcy on Grounds of Public Interest”
7. “Goldman Sachs Lowers Bitcoin Target Price to $82,000”
8. “Chinese Police Reveal Methods for Tracking and Seizing Virtual Currencies”
9. “Goldman Sachs Lowers Bitcoin Target Price to $82,000”
10. “Dutch Prosecutors Request Bankruptcy Settlement for Cryptocurrency Platform Knaken”