Ethereum Layer 2 network Starknet has launched a privacy feature called Shadow Accounts, allowing users to isolate their main wallets from DeFi activity at the account level, making it harder for external observers to directly correlate on-chain behavior between the two. The feature is implemented through account abstraction and zero-knowledge proof properties, but on-chain transactions themselves remain publicly visible.

[Event Details]

• Feature Positioning: Shadow Accounts allows users to create independent accounts for DeFi interactions outside their main wallets, using privacy routing mechanisms to obfuscate fund flows and operational correlations between them.
• Technical Principle: The feature relies on Starknet’s account abstraction architecture and zero-knowledge proof properties, allowing users to switch flexibly between different accounts while preserving verifiability of on-chain transaction records.
• Privacy Boundary: Although Shadow Accounts can obfuscate the correlation between main wallets and DeFi accounts, specific on-chain transaction amounts, contract calls, and timestamps remain visible on-chain, meaning it is not fully anonymous.
• Use Cases: The privacy feature primarily targets professional users and institutions seeking to protect trading strategies in DeFi activities and avoid being tracked by front-running bots or market analysis tools.

[Panorama]

Starknet’s privacy feature reflects Layer 2 networks entering a new competitive phase around user experience and feature differentiation. Against the backdrop of slow privacy technology development on Ethereum mainnet and high usage barriers for dedicated privacy chains, Layer 2 networks achieving limited privacy through zero-knowledge proofs and account abstraction have become a viable path. The design philosophy of Shadow Accounts sits between full transparency and full anonymity: it acknowledges that on-chain data cannot be fully hidden, but reduces the risk of malicious tracking and strategy leakage through obfuscation of account correlations. This approach maintains certain compatibility with regulatory requirements, as transactions themselves remain traceable for compliant investigations. However, the introduction of privacy features may trigger further regulatory discussion about compliance obligations for Layer 2 networks, particularly regarding the boundaries of anti-money laundering and suspicious transaction reporting. From a market perspective, the privacy feature may become an important selling point to attract professional DeFi users, but may also be abused as market manipulation tools, attracting regulatory attention.

[Multiple Perspectives]

• Starknet Team Position: Emphasizes that privacy is a fundamental user right, with Shadow Accounts designed to balance privacy protection and compliance needs.
• DeFi Developer View: Some developers believe account-level privacy helps reduce front-running transactions and sandwich attacks, improving DeFi market fairness.
• Regulator Concerns: Compliance agencies warn that privacy features may be abused for money laundering and terrorism financing, demanding strengthened AML oversight of Layer 2 networks.

Editor: GoodInfo Global News Desk

CoinDesk reported that Robinhood Chain’s seven-day average transaction fees have dropped sharply in recent reporting cycles, falling roughly 82% from their previous peak. During the same period, daily on-chain transaction volume remained around USD 1.5 billion, only slipping about 6% from the prior high. The divergence between fees and activity stems from the combined effect of intensifying Layer 2 competition and the large-scale migration of DeFi protocols. The data offers a microcosm of the structural changes now taking place in the crypto infrastructure landscape.

Event Details

According to data disclosed by CoinDesk, Robinhood Chain’s seven-day average transaction fees fell to very low levels in the latest reporting cycle, a decline of 82% from the previous peak. Yet daily on-chain transaction volume remained around USD 1.5 billion, only about 6% lower than the prior high. This divergence between “collapsed fees and stable activity” reflects a rapid adjustment in the chain’s underlying cost structure.

Analysts pointed to several factors behind the fee decline. First, the share of batched transactions and aggregator usage rose, diluting the marginal cost per transaction. Second, the Robinhood team optimised the underlying execution environment in the latest version, significantly reducing base gas. Third, after several DeFi protocols and market makers completed their migration, on-chain computation paths became more efficient.

Notably, transaction counts on Robinhood Chain remained stable, meaning user activity has not visibly leaked away despite the fee decline. This contrasts with the typical pattern of some newer chains where fee cuts have coincided with user attrition, suggesting that the chain enjoys relatively strong user stickiness.

Panoramic Perspective

The phenomenon of Robinhood Chain fees collapsing while activity stays stable is a microcosm of the current white-hot competition among Layer 2 chains. On the surface, lower fees are good for users, but they pose a challenge to the chain’s own revenue model and token economics. If transaction fees remain persistently low, how a public chain maintains validator incentives and funds further development becomes a central question that must be answered.

At a deeper level, this data reflects the “infrastructure dividend” phase that the crypto industry is currently experiencing. When users care more about speed and cost than brand, new chains have an opportunity to accumulate activity rapidly, but they also face more intense competition for user retention. As a representative case of a traditional brokerage transitioning into crypto, whether Robinhood’s on-chain ecosystem can build a sustainable network effect still requires close observation of real subsequent user behaviour and protocol quality.

Multi-Perspective Comparison

Supportive View:

• Some analysts see Robinhood Chain’s fee decline as a natural outcome of its scaling phase, helping attract more ordinary users into crypto
• Bulls note that the lack of meaningful activity leakage suggests the chain enjoys genuine demand support

Cautious View:

• Some researchers caution that persistently low fees could undermine the chain’s own revenue model and the sustainability of its token economy
• Other observers note that subsequent transaction structure and user composition must be observed further before any judgment on the trend’s stability

Editor: GoodInfo Global News Desk

Ethereum’s core development team has officially confirmed the specific timeline for the Glamsterdam upgrade, marking the countdown to this highly anticipated network upgrade. The team also warned that some fake builders may drag down network performance and the upgrade process through low-quality protocol proposals, calling on the community to focus on substantive improvements that can truly advance the ecosystem.

Editor: GoodInfo Global News Team