Data Analysis ERC-4337 Adoption The Moment of Breakthrough Arrives?

Data Analysis ERC-4337 Adoption Breakthrough Moment?

CyberConnect has driven a significant increase in the adoption of ERC-4337.

Author: 0xKofi

Translation: Luffy

In a recent blog post, Vitalik Buterin described the adoption of smart contract wallets as one of the most important changes currently facing Ethereum.

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ERC-4337 is the smart contract wallet standard (also known as smart accounts), and its main features are:

• Users can perform pseudo-transactions called UserOperations (UserOps).

• Bundlers package batches of UserOps into a single on-chain transaction.

• Applications can use the LianGuaiymasters contract to pay gas fees on behalf of users.

Currently, there are over 350,000 ERC-4337 accounts deployed on Ethereum, Arbitrum, Optimism, and Polygon, with 83% of them created just last month. Smart accounts are experiencing exponential growth.

I analyzed the on-chain activities of ERC-4337 users and made some simple findings.

Polygon

In July, due to the launch of CyberConnect (a social network where all accounts are ERC-4337 wallets), Polygon experienced a significant increase in ERC-4337 adoption. In July alone, CyberConnect drove around 360,000 UserOps.

Optimism

Similarly, with the launch of CyberConnect on L2, the usage of ERC-4337 started to soar last week. The number of UserOps in the first four days of August was more than four times that of the entire month of July.

The second most popular application using ERC-4337 on Optimism is Beam, a smart account wallet designed specifically for stablecoin payments.

Ethereum

A significant portion of the activity of smart accounts on Ethereum is focused on liquidity staking. In July, 41% of UserOps were generated by minting and transferring stETH, cbETH, and rETH.

For more data, please check out my smart account dashboard on Dune.

https://dune.com/niftytable/account-abstraction

New OpportunitiesMetamask Snaps

During ETHCC, the Metamask team announced the Snap Keyring API, which allows developers to add new types of accounts to Metamask outside of EVM EOA. Later this year, Keyring will support smart accounts, which will play an important role in the future of Metamask.

MEV

Currently, ERC-4337 Bundlers have exclusive access to MEV extraction from any UserOps sent to them. Bundlers can decide to sell access to the MEV stream to MEV searchers or run their own MEV strategies.

The long-term solution is to establish a public ERC-4337 memory pool, where all UserOps will input before packaging. I believe this will bring opportunities for real-time memory pool data services and other products.

Consumer Applications

The most successful consumer crypto applications will have an abstract wallet experience, where account recovery, zero gas fees, and automated operations are standard features.

If you want to build a consumer crypto application, you must develop and audit a custom implementation. The most popular crypto applications (Binance, Stake.com, Pornhub Premium, etc.) usually fully host the funds.

As the ecosystem develops, Web3 teams will be able to access most of the key features out-of-the-box using ERC-4337, while offering self-hosting or partial hosting. Features that ERC-4337 does not have may be built as plugins, and any modular account implementation can benefit from it. Crypto consumer applications can leverage it to save a lot of development time.

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