TronWeekly

Crypto World News

You are here: Home / Archives for Ethererum

Ethererum

Yakovenko’s Flawed Vision: Solana Co-Founder Prioritizes Speed Over Security, Raising Grave Concerns

by

In a rece­nt debate in the cryptocurre­ncy community, Solana co-founder Anatoly Yakovenko and Ethere­um researcher Justin Drake­ discussed the crucial issue of e­conomic security within blockchain networks. Kunal Goel, a re­searcher at MessariCrypto, de­tailed the main points, highlighting the diffe­ring views of the two expe­rts.

One of the­ central points of contention was the nature­ of token issuance. Drake argue­d that issuing tokens inherently re­presents a cost to the ne­twork. He likened mine­rs selling tokens to cover ope­rational expenses to use­rs selling tokens to pay taxes, e­mphasizing that both scenarios drain resources from the­ network.

While the­ intricacies of transaction timing difference­s between Solana and Ethe­reum were de­emed overly te­chnical, Goel acknowledged Yakove­nko’s point regarding Solana excee­ding its theoretical 400-millisecond transaction proce­ssing timeframe under curre­nt transaction volumes. This highlights a potential bottlene­ck for Solana’s scalability.

Solana’s Economic Security in Debate

The de­bate truly ignited when the­ topic shifted to economic security. Goe­l challenged Yakovenko’s claims using e­xamples like the Chihuahua chain and Solana’s te­stnet. Since these­ networks lack valuable assets, attacke­rs have little incentive­ to attack, rendering Yakovenko’s argume­nts about security costs less applicable. 

Drake­ countered by emphasizing the­ importance of protecting critical transactions, such as Oracle data fe­eds and trading activity, further solidifying the ne­ed for a robust economic security mode­l.

Yakovenko be­lieved that stablecoins could se­rve as better store­s of value than Bitcoin or Ethereum during time­s of crisis, drawing from his family’s experience­ fleeing the Sovie­t Union, disclosing his perspe­ctive on cryptocurrency’s role. Goe­l interpreted this as Yakove­nko prioritizing technology over the broade­r vision of challenging nation-states’ fiat monopolies, a core­ tenet of Bitcoin and Ethere­um’s aspirations.

The de­­bate also hinted at Yakovenko’s shifting attitude­ towards de­centralization, possibly as a result of the­ recent FTX fiasco. Ethe­re­um’s decentralized structure­, with diverse clie­nt imple­mentations and indepe­nde­nt teams, sharply contrasts Solana’s more ce­ntralize­d model with a smaller group of dominant holde­rs. Goe­l suggests that economic se­curity might be­ less important for Solana due to this ce­ntralization but raise­s concerns about its long-term re­silie­nce.

The re­vived discussion centers on the­ blockchain trilemma—the trade-offs be­tween spee­d, scalability, and security. Solana emphasizes spe­ed and hardware optimization, providing a practical solution for users. Conve­rsely, Ethereum aims for long-te­rm growth by focusing on a strong Layer 2 ecosystem and ne­twork effects. The conflict of philosophie­s shows the complexity of the proble­ms that blockchain technology has to solve to gain wide­r acceptance.

Related Readings | WAVES Wipeout: $500M Lost in Rug-Pull

Ethereum Futures ETFs Make a Splash: The Rise of 9 New Players

by

The world of exchange-traded funds [ETFs] based on Ethereum futures received a significant boost with the launch of VanEck’s EFUT fund. VanEck, a global investment manager, activated its EFUT fund for trading, offering investors exposure to Ether-linked investments through an exchange-traded instrument. It’s essential to note that EFUT does not directly invest in ETH or other digital assets; instead, it seeks capital appreciation by investing in Ethereum futures contracts.

EFUT is set to be listed on the Chicago Board Options Exchange [CBOE] and will be managed by Greg Krenzer, VanEck’s Head of Active Trading. Krenzer, with over two decades of experience in trading various asset categories, including futures, brings valuable expertise to the management of EFUT.

Ethereum
Ethereum Futures ETFs Make a Splash: The Rise of 9 New Players 2

Joining VanEck in this venture, other prominent players in the financial market, including ProShares, Bitwise, and others, are launching their respective Ethereum Futures ETFs on October 2. These launches were made possible through filings with the U.S. Securities and Exchange Commission and official announcements.

VanEck’s commitment to the ETH community is evident through its pledge to donate 10% of EFUT’s profits to the Protocol Guild. This guild serves as a compensation plan for core contributors to the Ethereum network, providing crucial support to approximately 150 individuals responsible for maintaining the core Ethereum protocol, as reported by TronWeekly.

Grayscale, a major player in the cryptocurrency investment space, has also made significant moves. Following the introduction of Ethereum Futures ETFs in the U.S. market, Grayscale aims to convert its Grayscale ETH Trust [ETHE] into a spot ETH ETF. This transition is reflected in the filing of a 19b-4 with the SEC. Notably, regulatory permissions for new crypto ETFs are obtained from the exchange listing the fund’s shares rather than from the sponsor itself.

Ethereum Futures- A Closer Look at the Market Dynamics

As of October 2, a total of nine new ETF products have entered the market, all designed to track futures contracts linked to the value of Ethereum’s native currency. Despite witnessing trading volumes of less than $2 million on the first day, these ETFs have garnered attention.

While this trading volume pales in comparison to that of the ProShares Bitcoin Strategy ETF [BITO], which surpassed $1 billion in trading volume on its debut, experts like Bloomberg ETF analyst Eric Balchunas view this activity as substantial. He noted that although investors typically favor spot ETF products over futures, the volume observed was comparatively significant for this type of financial product launch.

Massive Ethereum Transaction: 10,600 ETH Sold, Resulting in $3 Million Loss

by

A large investor recently divested 10,600 units of Ether, totaling a value of $17.2 million. Despite having garnered an overall profit of $10.8 million through their Ether holdings, this particular sale incurred a substantial loss of $2.9 million. Data from Lookonchain highlights that the investor’s success rate stands at 22%, with only four out of the 18 traded tokens yielding positive returns on investment. Notably, two of the tokens resulted in a combined loss of nearly $5 million.

The motive behind the investor’s decision to sell Ether rather than accumulate it raises questions—could this signal an anticipation of a forthcoming price decrease? In the forthcoming discussion, we will explore the prevailing market conditions and conduct an analysis of the potential trajectory of Ether (ETH).

Ethereum Traders’ Enthusiasm Cools Down

Traders are gradually withdrawing from the current Ethereum market landscape. The level of open interest (OI) has reached its lowest point in 13 months, indicating a cautious approach as traders aim to safeguard themselves against potential losses by taking a step back.

Ethereum
Massive Ethereum Transaction: 10,600 ETH Sold, Resulting in $3 Million Loss 5

The previous instance of such low OI has historically worked in favor of Ether. Illustrated in the accompanying chart, the asset’s price underwent a consolidation phase for several weeks before rebounding and establishing a local peak. This resurgence was facilitated by renewed market interest. Additionally, Ethereum’s Market Value to Realized Value (MVRV) ratio has experienced a consistent decrease over the course of more than a month. At the present moment, it reflects a five-month nadir of 1.145. In the year 2023, this metric has fluctuated within the range of 1 to 1.2 on three separate occasions.

The initial drop occurred in mid-February, after which the MVRV swiftly rebounded, coinciding with a price recovery. Similarly, in mid-March, the MVRV briefly dipped below 1.1 before promptly bouncing back, aiding Ethereum’s price surge from $1368 to $2142 over the ensuing five weeks. The third instance, around mid-June, saw another dip in MVRV, ultimately contributing to Ethereum’s climb from $1626 to $2029 within a month.

Ethereum
Massive Ethereum Transaction: 10,600 ETH Sold, Resulting in $3 Million Loss 6

Throughout history, instances of low Market Value to Realized Value (MVRV) levels have consistently served as a point of rebound for Ethereum’s price. As long as this metric remains within the current range, a price correction can be anticipated. However, once the metric gains momentum and initiates an upward trajectory, Ethereum’s recovery is likely to follow suit. When considering potential price targets, traders should monitor levels around $1550 and $1756. At the present moment, Ethereum’s trading value stands at $1639, reflecting a decrease of 1.4% within the last 24 hours.

Crypto Whale’s Moves Ignite Community Curiosity

by

In the volatile world of cryptocurrency markets, significant transactions and movements often raise eyebrows, especially when carried out by large holders known as “whales.” Recent data from Lookonchain has shed light on the intriguing activities of a crypto whale with the wallet address 0x5b…551E. Over the past two days, this whale has executed substantial deposits and withdrawals on two major exchanges, Binance and OKX, following a significant market crash. These transactions, involving the deposit of 10 million USDC and 57 million USDT, as well as the subsequent withdrawal of 17,901 ETH worth around $30 million, have sparked curiosity and speculation within the crypto community.

The timing of the whale’s deposits following a market crash has led to various interpretations. It’s important to consider potential motives behind such actions. Depositing stablecoins, USDC and USDT, might indicate a strategic move to capitalize on price fluctuations. Stablecoins are designed to maintain a stable value, often pegged to a fiat currency like the US Dollar. By depositing these stablecoins, the whale could be seeking to insulate their assets from further market volatility, awaiting a more opportune moment to reinvest.

Furthermore, the choice of Binance and OKX, two prominent cryptocurrency exchanges, suggests the whale’s preference for liquidity and access to a wide range of trading options. Binance, in particular, is known for its extensive selection of cryptocurrencies available for trading, making it an attractive platform for investors seeking diversification.

Screenshot 22
Source: Lookonchain

The subsequent withdrawals of 17,901 ETH worth approximately $30 million from both Binance and OKX have raised questions about the whale’s intentions. The large-scale movement of funds could indicate a desire to take profits or strategically reposition assets. Ethereum (ETH), as one of the most widely recognized cryptocurrencies, remains a preferred choice for many traders and investors.

However, the withdrawals might also signal the whale’s anticipation of further market downturns. As history has shown, sudden and significant withdrawals by influential players can trigger market shifts, potentially causing panic selling among retail investors and exacerbating price declines. This potential domino effect underscores the interconnected nature of cryptocurrency markets and the influence of major holders.

Speculation Reigns in Dynamic Crypto Community

In the age of decentralized finance, transparency is a cornerstone of credibility. The visibility of these transactions through blockchain explorers like Lookonchain ensures that market participants and enthusiasts are kept informed about significant moves. The crypto community is abuzz with speculation and hypotheses, ranging from predictions of a market rebound to concerns of potential manipulation.

It’s worth noting that whales are often attributed with the power to sway market sentiment due to their substantial holdings. However, attributing all market movements to individual whales oversimplifies the complex interplay of factors that contribute to cryptocurrency price dynamics. The market crash that preceded these transactions could have been triggered by a multitude of factors, including macroeconomic trends, regulatory developments, and investor sentiment.

The recent activities of the crypto whale with the wallet address 0x5b…551E have captivated the attention of the crypto community. The strategic deposits and subsequent withdrawals raise intriguing questions about the motivations behind such moves. Whether these actions signify attempts to profit from market fluctuations, strategically reposition assets, or anticipate further downturns remains a matter of speculation.

As the cryptocurrency market continues to evolve, regulatory scrutiny and the growing influence of institutional players contribute to an environment of both opportunity and risk. The actions of individual whales, while impactful, are only one facet of a multifaceted landscape. Investors and enthusiasts should approach such events with a balanced perspective, considering the broader context and the multitude of factors that shape the cryptocurrency market.

Ethereum ETF Euphoria: A Potential Catalyst For Soaring All-Time Highs

by

The price­ of Ethereum (ETH), the se­cond-largest cryptocurrency by market capitalization, could e­xperience a significant surge­ if the U.S. Securities and Exchange­ Commission (SEC) give their approval for multiple­ futures exchange trade­d funds (ETFs) based on Ether.

The speculation has bee­n gaining traction in the crypto market as the Wall Street Journal (WSJ) indicate­ that the SEC is considering the listing of seve­ral Ethereum futures ETFs simultane­ously. That would be a historic moment for the crypto industry, marking the first time U.S. investors could access Ethereum-based ETFs.

These financial products would track ETH futures contracts, e­nabling individuals to buy or sell ETH at predete­rmined prices and dates in the­ future. One company see­king approval for an Ethereum futures ETF is Volatility Share­s, intending to launch its product on October 12th.

Since July, the­re has been no re­quest from the SEC asking Volatility Shares to withdraw its application—a positive­ sign hinting towards a potentially favorable outcome. However, it’s important to note­ that official approval or rejection of any Ethere­um futures ETF by the SEC is yet to be­ confirmed.

Ethereum Futures ETFs Could Attract More Institutional Investors

The introduction of Ethe­reum futures ETFs in the U.S. could significantly impact the­ demand, supply, and price of ETH. A notable e­xample is the historical rally see­n in Bitcoin’s price after the introduction of Bitcoin future­s in December 2017, which attracte­d more institutional investors to ente­r the market.

A similar scenario may unfold for Ethe­reum, as it would allow investors to gain exposure­ to ETH without directly purchasing or storing it. This increased acce­ssibility could enhance liquidity and bolster ETH’s le­gitimacy as an investment asset across various se­ctors.

Although Ethereum currently stands around $1,668.03, be­low its previous peak of $4,362.35 in May 2021, news surrounding pote­ntial Ethereum futures ETFs has the­ potential to act as a strong bullish catalyst propelling ETH towards new highs.

However, inve­stors must remain aware of associated risks and uncertaintie­s related to investing in Ethe­reum futures ETFs and ETH itself. The­ actual impact these ETFs will have on ETH’s price­ depends on seve­ral factors like market sentime­nt, regulatory developme­nts, launch dates, and their subseque­nt performance.

Related Reading | Cardano’s Hydra Upgrade Boosts Scalability And Security

Ethereum Has Been Flowing From CeFi to DeFi

by

The conversations surrounding the decentralized finance [DeFi] realm might have taken a backseat with the rise in prominence of Bitcoin, but when it comes to the second-largest cryptocurrency, Ethereum, deFi continued to hold a special place.

Despite a significant price appreciation, Ethereum investors were found to be with withdrawing their assets from centralized exchanges. Data from the crypto analytic platform, Glassnode revealed that the amount of fees on #thereum spent on ETH deposits to centralized exchanges took a plunge from approximately 25% in 2017 to less than 1% according to the current.

Interestingly, almost all fees spent on transactions involving centralized exchanges in the past several months were used for ETH withdrawals. In short, there has been an overall decline with respect to Ethereum user activity on centralized exchanges.

ET 1

Gauging from the receding activity of Ethereum users on CEX over the last couple of months, it can be noted that the trend could have been bolstered due to rising gas fees on Ethereum.

Additionally, Ethereum locked in deFi protocols had hit a major slump when the figure took a dive from 8.867 million ETH to 6.692 million in the last week of November. The TVL began trending upwards as deFi has once again managed to gained momentum.

DEXs have produced a compelling case for the users and developers alike. However, repeated cases of security breaches and loopholes, the community has, time and again, questioned the protocols seeking to take advantage of the growing hype by advertising impressive returns while blatantly neglecting to perform security audits. Due to its contentious nature, decentralized finance space has been touted as either a bubble or the greatest wave of innovation the the world ever seen in finance.

DeFi Grabs Headline

newplot

The number of individual addresses involved with deFi is now greater than 1.046 million, according to data compiled on Dune Analytics. While the rise in addresses does not correspond to rise in the number of individuals or firms, since a person may have more than one address, it, however, depicted a monumental rise as deFi’s popularity rose.