TronWeekly

Crypto World News

You are here: Home / Search for "Ethereum"

Search Results for: Ethereum

Bitcoin and Ethereum Addresses Continue to Decline in 2024

by

Since early 2024, Bitcoin and Ethereum have consistently declined active addresses. Data from CryptoQuant highlights that the number of active Bitcoin addresses has dropped from 1.17 million to 855,000, while Ethereum’s active addresses fell from 382,000 to 312,000. This decline indicates a lack of new investors entering the space, a critical factor for market growth, especially for bullish momentum.

A lack of new participants would imply dominance from current market participants. The investors who waited for the approval of the spot ETFs were already counted. Despite this expectation, the hype from broader movements that was expected has not happened.

The first key factor was the continuous quantitative tightening of the Federal Reserve that sucked out the liquidity from the market. This policy shift offset the probable effects of minor increases in the M2 money supply.

On the other hand, there is also an expectation that, eventually, the Fed will revert back to quantitative easing, meaning a new injection of liquidity. When that happens, maybe the flow of money will create the long-expected hype and rise in the number of active addresses. Until then, it’s all about patience.

Short-Term Bitcoin Flows Decrease

CryptoQuant also reported that the market might be preparing for the next upward trend. The most critical indicator, the Exchange Flow Multiple, went down. The metric shows the relation between inflows and outflows of Bitcoin on exchanges in the short term, considering a period of 30 days, compared to those over 365 days.

A low Exchange Flow Multiple suggests that inflows and outflows in the short run are way below that in the long run, speaking volumes about investor accumulation. This year, when the Exchange Flow Multiple was at its lowest, it signaled lower exchange activity, which may mean that investors have grown patient.

image 12 2

Patience among investors usually manifests in the early stages of the bull market, where smart money is unwilling to let their assets go in anticipation of higher prices in the near future. Additionally, corrections after a drop in prices usually end up with reduced exchange activity as traders wait for stability before making further trades.

The similar low patterns of Exchange Flow Multiple could be spotted beforehand, preceding the 2023 rally. Given that current levels have approached those lows once more, this may indicate that another upward movement has reached the market, where long-term holders refrain from suddenly liquidating their positions in anticipation of further gains in the future.

Related Reading | Bitcoin’s 10% September Surge Signals Bullish Momentum Ahead

Ethereum Staking Outshines U.S. Bonds with 15% Growth

by

Ethereum (ETH) staking returns are poised to surpass U.S. interest rates in the coming year. This change could attract investors seeking higher yields, driving Ethereum’s price upwards. Falling U.S. rates and rising ETH transaction fees are expected to close the gap between staking returns and traditional risk-free rates.

Since mid-2023, the spread between Ethereum’s Composite Staking Rate and the Effective Federal Funds Rate has been negative. However, two trends could reverse this by mid-2025. FalconX, a major crypto brokerage, highlights these factors in an investor note, the Federal Reserve’s decision to cut interest rates and rising staking yields on ETH.

According to CME FedWatch, there’s an 85% chance the federal funds rate will drop below 3.75% by March 2025, and a 90% chance it will fall to 3.5% by June. This could narrow the yield gap between ETH staking and traditional assets like Treasury bonds, currently offering low returns.

FalconX Predicts Ethereum Yield Surge Within Two Quarters

Ethereum’s staking yields are hovering around 3.2%, as per recent data. FalconX’s head of research, David Lawant, noted that ETH staking rates significantly outperformed risk-free rates at the end of 2022 during the FTX collapse, a rare occurrence in recent times.

Transaction fees on the Ethereum network, which affect staking rewards, have surged in the last few weeks, reaching their highest level in two months before settling at $0.80 per transaction. This fee rise signals increased blockchain activity, which boosts staking yields.

FalconX projects that declining U.S. interest rates and rising Ethereum staking yields will turn the spread positive in the next two quarters. This will make ETH staking more attractive compared to traditional yield-bearing assets. However, institutional investors, cautious about regulations, may wait for exchange-traded fund (ETF) products that offer regulated access to staking.

In May, the SEC approved eight Ethereum ETFs but without staking features. Real Vision’s crypto analyst, Jamie Coutts, believes demand for staking through regulated products could rise once the SEC allows these offerings. Until then, institutional participation in ETH staking may grow slowly but steadily.

As ETH staking grows more competitive, its role in the market is set to expand, drawing attention from investors worldwide.

Buterin’s Vision for a Unified Ethereum Ecosystem through New Metrics

by

  • Ethereum co-founder aims to measure project alignment with core values to tackle decentralization and cooperation issues.
  • Focus on values (open-source, low centralization), technology (ecosystem standards), and economics (using ETH).
  • Critical infrastructure should be open-source to ensure interoperability.
  • Encourage third-party assessments of alignment for a more meritocratic Ethereum ecosystem.

Vitalik Buterin, Ethereum’s co-founder, has introduced a proposal to measure how closely projects align with Ethereum’s core values. In a recent blog post, Buterin highlighted the key social challenge in the Ethereum ecosystem: achieving a balance between decentralization and cooperation.

This diversity of efforts creates a healthy, thriving network of developers, researchers, and community groups working towards their respective particular visions for Ethereum’s future. The risk is that there will not be an ecosystem, per se, but rather fragmented, incompatible systems.

For this, Buterin proposes a better articulation of what Ethereum alignment means, starting with clearly defining it through concrete metrics. According to him, Ethereum alignment means alignment in three areas: values alignment, technological alignment, and economic alignment.

Values alignment is based on open-source code, low centralization, and support for public goods. Technologically aligned means working with ecosystem-wide standards, while economically aligned means a preference for using ETH as the native token where possible.

Historically, the term alignment has often been very vague, most of the time creating power imbalances. Buterin now wants to change that by proposing clearly defined metrics on how to assess the said alignment so that projects in the ecosystem create a positive external contribution to Ethereum’s long-term vision.

image 51 7
Ethereum node map | source: ethernodes.org

Open-Source Principles and Standards in Ethereum

This is an open-source proposal. As Buterin pointed out, it doesn’t require everything to be open-source, but the critical infrastructure does need to be open-source to avoid proprietary lock-ins and to let improvement happen in a permissionless fashion.

It should also focus on open standards that will answer the question of interoperability in the ecosystem. He also proposes the rating of projects in regard to their level of compatibility with already existing Ether standards, such as ERC-20 or ERC-1271.

Buterin also mentions two other important metrics: decentralization and security. He describes two major tests: whether the application would survive intact if some project team disappeared and how much would attackers damage the system if a given team actively tried to compromise it. These metrics stand in an attempt to minimize reliance on centralized infrastructure while at the same time enhancing security.

Going forward, Buterin would see third-party entities like L2beat start quantifying how well projects actually align with these criteria. Such organizations would foster competition based on alignment rather than social connections and provide a much clearer path for stakeholders, including the Ether Foundation, to support positively contributing projects in the ecosystem.

By making the concept of alignment more measurable, Buterin feels this design will make the Ethereum ecosystem meritocratic, transparent, and fair while ensuring cohesive and inclusive network growth.

Related Reading | Crypto In Focus At 2024 Tsinghua PBC Forum: Risks And Global Policy Shifts

PEPE’s Strong Correlation With Ethereum Drives Bullish Streak

by

  • PEPE has successfully broken out of a bullish continuation pattern, suggesting a potential upside.
  • The meme coin’s price is correlated with Ethereum, and increased Ethereum burns could benefit it.
  • It has outperformed its rivals, Dogecoin and Shiba Inu, in terms of long-term holder returns.

PEPE, a frog-themed meme coin has been making waves in the cryptocurrency market, exhibiting strong bullish momentum. Following Ethereum’s lead, the token successfully broke out of a bullish continuation pattern, complete with a retest for confirmation. This positive development has reignited investor interest in the token.

PEPE
PEPE's Strong Correlation With Ethereum Drives Bullish Streak 4

One of the key factors driving PEPE’s price surge is its correlation with Ethereum. As Ethereum continues to burn more tokens, it could indirectly benefit the meme coin. The increased scarcity of Ethereum could lead to a higher valuation for the popular token, which is often seen as a speculative asset tied to Ethereum’s success.

The high correlation between the two crypto assets is evidenced by data from IntoTheBlock. It showed PEPE’s 60-day correlation with ETH was 0.92, higher than with Bitcoin, which stood at 0.84, and a surge from June’s 0.91. The correlation coefficients lie between -1 to +1. If the reading is close to -1, prices hardly move in the same direction signifying an inverse relationship. On the other hand, if the reading is near +1, prices typically head in the same direction or a direct relationship. ETH and PEPE exhibit a strong positive correlation.

PEPE’s Retail Traders In Accumulation Spree

Furthermore, the meme coin has demonstrated a remarkable performance compared to its larger rivals, Dogecoin [DOGE] and Shiba Inu [SHIB]. According to Santiment data, PEPE’s long-term holders have experienced significant returns amidst recent price gains. However, it’s worth noting that retail traders have been more active in buying PEPE than whales, suggesting a potentially speculative nature to the current price increase.

Overall, the meme coin’s bullish outlook is encouraging, but investors should remain cautious and conduct thorough research before making any investment decisions. The cryptocurrency market is highly volatile, and past performance is not indicative of future results.

Ethereum’s TVL Poised to Soar Beyond $37.75B as Layer 2 Adoption Expands

by

  • Ethereum’s total value locked (TVL) is at $37.75 billion, with potential to reclaim all-time highs.
  • AminoChain forecasts Ether could underpin the global financial system, using ETH for transactions.
  • The ecosystem may feature ETH-derived stablecoins pegged to the USD, unlike traditional USD-backed stablecoins.

Ethereum is at the cusp of a sea change, with its total value locked at an impressive $37.75 billion. According to Leon Waidmann, Head of Research at Onchain HQ, that figure is just the beginning. With Ethereum furthering the cause of Layer 2 adoption and with the continuously expanding Web3 ecosystem, Waidmann thinks that TVL is close to reclaiming its all-time highs anytime soon.

image 50 7

He looks at Ethereum not just as a blockchain but as an inseparable part of the Web3 economy that is going to fuel more innovation and decentralization. Meanwhile, another newly launched Ether layer 2 solution, AminoChain, took to X with a pretty bold prediction: the whole global financial system could one day run on Ethereum.

According to this vision, there could be three main types of assets that evoke the base layer of this future system. First is Ethereum’s native currency. It is positioned to be, as the fundamental medium of transactions and smart contracts, the largest market-cap asset among the Onchain primitives and one of the two fundamental stores of value along with the U.S. dollar in this new financial system.

AminoChain focuses on important ETH-derived stablecoins that would use algorithmic approaches encoded in self-sustaining protocols, keep a peg to the USD, and use ETH as collateral. These are the types of stablecoin tokens that will change how digital assets interact with traditional finance.

These contrast with USD-backed stablecoins, which would rely on actual USD reserves for their backing, making them Ether’s largest tokenized external assets.

The Role of Ethereum (ETH) as a Store of Value

The ecosystem will also involve minor Onchain primitives that are native assets on Ethereum basically deriving their value from decentralized applications or collectibles. Prominent examples include tokens like Uniswap’s UNI, Aave’s GHO, and iconic CryptoPunk NFTs.

image 50 8

There are minor tokenized external assets from somewhere else that have been tokenized and may involve non-USD national currencies, Bitcoin, precious metals, and real estate. Whereas Ethereum is still under development, its potential to reshape the face of global finance seems boundless.

The stage for the role of Ethereum in financial futures is set with advanced forecasts from Waidmann and AminoChain, which suggests leading positions in innovation and new paradigms in asset valuation and exchange. The journey has just begun, and the influence of Ethereum might soon be trickling into various areas with its bright promise of a decentralized financial future.

Related Reading | Polkadot’s Falling Wedge Pattern Signals Potential Upswing Towards $12

Solana Set to Surge: Could It Reach $330 and Rival Ethereum?

by

A recent report from VanEck suggests that Solana could surge to $330, capturing up to 50% of Ethereum’s current market capitalization due to its superior speed and transaction processing. Despite Solana’s technological edge, the institutional shift toward Solana has yet to match its performance metrics, leaving Ethereum dominant.

Solana significantly outperforms Ethereum in several areas. It processes 3,000% more transactions, boasts 1,300% more daily active users, and charges transaction fees that are nearly 5 million percent lower. These impressive figures highlight Solana’s scalability and efficiency.

Market Cap Discrepancy: Solana’s Underappreciation

However, Solana’s market cap still only exceeds Ethereum’s by 22%, a discrepancy many analysts attribute to Ethereum’s established position and widespread institutional familiarity.

The growing debate between ETH and SOL has gained attention as SOL’s transaction volume and user engagement continue to outpace Ethereum. Predictions from TradingView indicate that SOL may soon close the gap, with a price target of $330 suggesting a shift in the cryptocurrency landscape.

One area where both platforms shine is decentralized finance (DeFi) and stablecoin ecosystems. With decentralized exchanges (DEXs) playing a critical role, creating and transferring stablecoins have emerged as vital use cases. SOL’s low fees and faster transaction times are particularly attractive in this space, offering a potential edge over Ethereum.

Payments and remittances represent another major growth sector for Solana, where its ability to facilitate cheaper, faster transactions may drive further adoption. Institutional adoption, however, has been slower to follow SOL’s rise. Ethereum’s first-mover advantage and familiarity within institutional circles have kept Ethereum dominant.

However, many experts believe that institutions will soon begin rotating into undervalued assets like SOL, particularly as they look for opportunities beyond Ethereum. Markets are dynamic, and even in bull markets, strategic rotations are key to avoiding missed opportunities.

As blockchain technology advances, investors may find that a diversified approach is best. Rather than betting solely on Ethereum or SOL, institutions could benefit from investing in a basket of leading Layer 1 blockchain. This strategy would spread risk while capturing upside from multiple platforms as the blockchain ecosystem continues to grow and evolve.

Related Reading | Vitalik Buterin Praises Celo’s Growth, Surpassing Tron in Stablecoin Usage

Ethereum Futures Market Sees Surge in Buying Activity, Hinting at Price Gains

by

Ethereum’s futures market is showing continued signs of a possible bullish shift in the asset, largely due to the high buying activity among traders. According to a CryptoQuant report, the perpetual futures market ranks as one of the most important components determining ETH’s price movement. Hence, analysis of the sentiment of futures traders will be crucial for understanding possible price action.

The report points to the importance of ETH’s 30-day moving average of funding rates, indicative of whether buyers or sellers are more aggressive in the market. That metric, after weeks of decline, has finally started to show a subtle but noteworthy upward trend. It came with a broader market recovery and an uptick in ETH’s price.

Rising funding rates are now considered a signal that more traders are taking positions on price gains, signaling perhaps a more optimistic outlook in the Ethereum market. The increase in the rate indicates that futures traders are becoming bullish, which could drive ETH prices higher if this trend continues.

Ethereum Buying Activity Increases in Futures Market

Nevertheless, the real demand for the futures of the perpetual market of Ethereum should be growing to kick off this positive dynamic and pull its price to higher values. A regular escalation of funding rates will likely uplift the market to higher price levels in the next few months.

This growth would be conceivable only with the continuous support of the futures traders. The opposite effect of funding rates could be a stumble in ETH’s redemption.

However, the perpetual futures market demands must continuously spiral upwards to let Ethereum leverage this opportunity and maintain its upswing into even higher prices. Funding rates usually undergo substantial changes due to the sentiment shift in the market, with continuously strong buying activity being the asset driver essential to Ethereum’s price growth in the medium to long term.

While offering this bullish signal is interpreted as a positive outlook for Ethereum, the market is always uncertain. A strong upward path surely demands the interest of liquidity road participants and institutional investors’ participation. Thus, the price of Ethereum in the next few weeks could be highly influenced by the traders’ reactions to these new signals in crypto futures.

Related Reading | BNY Mellon to Offer Crypto Custody for ETPs Following SEC Liability Exemption

Ethereum Whale Makes Bold $9M Move to Kraken

by

After two years of dormancy, an Ethereum Initial Coin Offering (ICO) participant has returned to action. This early investor, who received 150,000 ETH at Ethereum’s Genesis block, moved a portion of their holdings. Initially, the ICO participant’s investment was just $46,500, but today, their portfolio is worth an astounding $389.7 million. Recently, 3,510 ETH, valued at $9.12 million, was transferred to the Kraken exchange, as noted by Lookonchain.

Screenshot 290
Source

A closer look reveals the participant’s portfolio still holds 11,489.99 ETH, valued at $30.6 million. Alongside the Ether, their wallet contains 16 different tokens. Before this recent transfer, the last activity came over two years ago, when the investor received three transfers of 5,000 ETH each from another wallet. The participant’s re-emergence has reignited curiosity about long-term Ethereum holders and their impact on the market.

Ethereum Foundation’s ETH Sales Continue

While individual whale movements are rare, the Ethereum Foundation maintains a more active trading rhythm. On September 21, the Foundation sold 300 ETH for around $763,000, at an average price of $2,543 per ETH. The trade converted ETH to the stablecoin DAI. This was not an isolated event, as the Foundation has consistently liquidated ETH in recent weeks.

Screenshot 291
Source

Earlier in September, two separate ETH sales were recorded, valued at $226,868 and $1.029 million. Since the beginning of the month, the Foundation has sold 950 ETH, worth about $2.27 million. These sales follow a regular cycle, occurring every four to seven days.

Such regular liquidations by the Ethereum Foundation draw attention from market observers. The consistency of these transactions may signal strategic portfolio adjustments or operational funding decisions. Given the Foundation’s considerable ETH holdings, these sales, though modest relative to the total supply, can still influence market sentiment.

In addition to direct sales, notable Ethereum transfers have been spotted involving a multi-signature wallet linked to the Foundation. On September 6, during a period of Ethereum price decline, 1,000 ETH—worth about $2.38 million—was transferred to this wallet. At the time, the wallet held 1,678 ETH, with a value of $3.98 million, and 32 different tokens totaling $98,755.

The timing of these transfers, particularly during price dips, raises questions about the intent behind such movements. Are they intended for operational needs, or could they be strategic, aligning with price lows for better value extraction?

As Ethereum approaches key market events, these moves by early investors and the Foundation highlight the complex dynamics shaping the future of ETH. With the participant’s recent transfer and the Foundation’s consistent sales, Ethereum remains at the center of crypto market attention.

Ethereum Fees Surge 368% to $3.98 Despite Active Accounts Falling to Yearly Low

by

  • Ethereum’s trаnsаction fееs surgеd to $3.98, mаrking а 368% incrеаsе sincе еаrly Sеptеmbеr.
  • Activе usеr аccounts on Ethereum droppеd to 373,770, thе lowеst lеvеl in 2024.
  • Dеspitе rising fееs, invеstor sеntimеnt rеmаins low, with Ethereum’s mаrkеt cаp rаtio to Bitcoin dеclining.

Thе Ethereum nеtwork, rеcognizеd аs thе sеcond-lаrgеst blockchаin globаlly by mаrkеt cаp, hаs displаyеd аn intriguing trеnd rеcеntly. Notаbly, whilе trаnsаction fееs hаvе surgеd pаst а yеаr-to-dаtе low rеcordеd еаrliеr this month, thе numbеr of аctivе usеr аccounts hаs fаllеn to its lowеst lеvеl in 2024.

In еаrly Sеptеmbеr, thе аvеrаgе trаnsаction fее on Ethereum droppеd to а historic low, fаlling bеlow $1 USD for thе first timе sincе July 2020. This dеclinе prеcеdеd significаnt dеvеlopmеnts within thе Ethereum еcosystеm, including thе proof-of-stаkе Mеrgе, blob upgrаdеs, аnd thе lаunch of thе widеly populаr Borеd Apе Yаcht Club NFT collеction.

Howеvеr, а significаnt shift occurrеd in subsеquеnt wееks, with thе sеvеn-dаy moving аvеrаgе trаnsаction fее еxpеriеncing а notаblе incrеаsе. Dаtа from Thе Block indicаtеs thаt thе fее rosе to $3.98 on Sеptеmbеr 22nd, rеprеsеnting аn аstounding 368.24% jump from its vаluе of $0.85 on Sеptеmbеr 1st.

Transaction Fee
Source: The Block Data

This risе in trаnsаction fееs hаs influеncеd thе ETH burn rаtе аs wеll. Likе trаnsаction fееs, thе burn rаtе—which rеfеrs to thе аmount of Ethereum pеrmаnеntly rеmovеd from circulаtion—hаs аlso incrеаsеd drаmаticаlly. According to Thе Block’s dаtа, thе burn rаtе еscаlаtеd from 80.27 ETH on Sеptеmbеr 1st to 1,120 ETH on Sеptеmbеr 22. This еquаtеs to аn imprеssivе 1,295.29% incrеаsе within just thrее wееks.

ETH 1
Source: The block Data

Ethereum’s Declining Active Accounts

Although trаnsаction fееs аnd thе burn rаtе indicаtе growing nеtwork аctivity, thе numbеr of аctivе аccounts prеsеnts а contrаsting viеw. Thе sеvеn-dаy moving аvеrаgе of аctivе аccounts hаs droppеd to its lowеst lеvеl this yеаr, showing а 14.14% dеclinе from 435,340 аt thе stаrt of Sеptеmbеr. Currеntly, аround 373,770 аctivе аccounts rеprеsеnt thе nеtwork’s lowеst count sincе Dеcеmbеr 1, 2023.

Active account
Source: The Block Data

This risе in trаnsаction fееs occurs аmid ongoing concеrns within thе crypto community аbout Ethereum’s prospеcts. Thе rаtio of ETH to BTC’s mаrkеt cаp rеcеntly fеll to its lowеst point sincе 2021, rеflеcting invеstor аnxiеty.

“No onе likеs Ethereum right now,” stаtеd Mаtt Hougаn, CIO of Bitwisе, dеscribing thе nеtwork аs а “contrаriаn bеt.” Furthеrmorе, аccording to thе block’s dаtа, rеcеntly dаily rеvеnuе for ETH stаkеrs hаs аlso rеаchеd а six-month low.

Related Readings | REEF Price Surges 314%: Can the Rally Continue?

Ethereum Investor Cashes In On $390M Windfall

by

  • Ethereum ICO participant cashes in on $390M windfall.
  • Ethereum network activity surges, fees and ETH burning skyrocket by 314% and 1,600% respectively.
  • Active accounts decline to a yearly low due to high fees. EIP-1559 might alleviate congestion.

An Ethereum [ETH] ICO participant who amassed a profit of 150k ETH worth nearly $390 million at the GENESIS event has deposited 3,510 ETH or $9.12 million into Kraken after being inactive for over two years. The deposit of such a large amount of ETH into Kraken could positively impact the price of the cryptocurrency.

The anonymous participant bought the stash at the ICO price of $46.5K. The token’s price has since skyrocketed, turning the investment into profitable. The participant’s recent deposit into Kraken could mean that they may be looking to cash out some of their profits. Alternatively, they could simply be moving their funds to a more secure exchange.

Ethereum
Ethereum Investor Cashes In On $390M Windfall 13

This participant’s story not only is a reminder of the potential rewards of investing in cryptocurrencies but also highlights the advantages of adopting a long-term holding strategy during periods of market downturn. However, it is important to note that cryptocurrencies are highly volatile, and one must be aware of the risks involved which means it is possible to lose significant money.

Meanwhile, the seven-day moving average of Ethereum transaction fees has reached $3.52, a surge of 314% from $0.85 on September 1. On September 21, the daily burning of ETH hit 1,360, a surge of 1,600% from 80.27 on September 1. However, the number of active accounts on the Ethereum network fell to the lowest point of the year, about 385,000.

Ethereum Transaction Soars But Active Address Drop

The increase in transaction fees could be a combination of factors, including increased network congestion and the growing popularity of decentralized applications [dApps] built on Ethereum. The surge in ETH burning is a result of the EIP-1559 upgrade, which was implemented in August 2021. EIP-1559 introduces a base fee for transactions, which is burned rather than going to miners.

The decline in active accounts on the Ethereum network is somewhat surprising, given the increase in transaction fees and ETH burning. It is possible that some users are being deterred by the high fees, or that they are simply finding other networks that are less congested.

Despite the decline in active accounts, Ethereum remains the most popular blockchain platform for dApps. It remains to be seen whether the recent surge in transaction fees and ETH burning will continue. If the network becomes too congested, it could deter users and developers from using Ethereum. However, the EIP-1559 upgrade is expected to help to reduce congestion over time.